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THE  ECONOMIC  PRINCIPLES  OF 
CONFUCIUS  AND  HIS  SCHOOL 


f 

r4 


BY 

CHEN  HUAN-CHANG, 

Chin  Shih  of  2455  A.  K.  {1904  A.  D.) 

Sea'etary  of  the  Grand  Sea'etariat, 

Peking,  China 


SUBMITTED   IN    PARTIAL    FULFILMENT   OF   THE    REQUIREMENTS 

FOR    THE    DEGREE    OF    DOCTOR    OF    PHILOSOPHY 

IN  THE 

Faculty  of  Political  Science 
Columbia  University 


o,3i 


NEW  YORK 
191  I 


-> 


Copyright,  191  i 

BY 

The  Faculty  of  Political  Science  of 
Columbia  University,  New  York 


THIS  BOOK 

AS  A  TOKEN  OF  GRATITUDE  AND  AFFECTION 

I  Dedicate  to  the  Memory  of  My  Father 
CHEN  CHIN-CH'UAN 


'^^s 


WHO  suffered  poverty,  adversity  and 

MANY    bitter    DISAPPOINTMENTS 

IN   ORDER   THAT   HIS   SON 

MIGHT  LEAD   THE   SCHOLAR'S   LIFE 


''  y 


FOREWORD 

Dr.  Chen  Huan-chang^  the  author  of  The  Economic 
Principles  of  Confucius  and  His  School,  has  seen  some  ser- 
vice as  a  mandarin  in  one  of  the  metropolitan  offices  in 
Peking;  he  is  deeply  versed  in  his  native  literature,  of  which 
the  so-called  Confucian  classics  have  occupied  him  for  many 
years;  he  is  a  personal  friend  and  has  been  a  pupil  of 
Kang  Yu-wei,  one  of  the  originators  of  the  modern  Chinese 
reform  movement  and  himself  a  profound  connoisseur  of 
Chinese  literature.  Thus  armed,  he  came  to  New  York 
about  five  years  ago  to  study  English  and  take  courses 
in  political  economy  at  Columbia  University.  Kang  Yu- 
wei's  moral  success  among  the  masses  of  China  was  largely 
due  to  the  fact  that,  while  being  thoroughly  convinced  of 
the  necessity  of  reform  in  social  and  political  life,  he  con- 
tinued to  be  an  eager  adherent  of  Confucian  principles. 
Dr.  Chen  proves  a  disciple  worthy  of  his  great  teacher. 
His  enthusiasm  for  the  great  sage  and  his  doctrine  could 
not  be  surpassed ;  western  readers  will  find  in  his  book  the 
representation  of  Confucianism  from  the  purely  Confucian- 
ist  point  of  view  by  an  author  who  is  a  Confucianist  him- 
self and  has  had  the  advantage  of  sifting  his  ideas  through 
the  methods  of  western  science. 

Friedrich  Hirtii, 
Professor  of  Chinese,  Columbia  University. 

New  York,  October  15,  191 1. 

vii 


Digitized  by  the  Internet  Archive 

in  2010  with  funding  from 

University  of  Toronto 


http://www.archive.org/details/economicprinciplOOhuan 


1^. 


PREFACE 

In  presenting  the  economic  teachings  of  Confucianism, 
Dr.  Chen  has  adopted  the  same  order  of  arrangement  that 
has  become  usual  in  EngHsh  treatises  on  pohtical  economy. 
The  danger  which  this  plan  involved  of  creating  the  im- 
pression of  a  more  systematic  exposition  of  economic  prin- 
ciples than  is  to  be  found  in  the  sacred  writings,  is  much 
more  than  outweighed  by  the  large  number  of  clear  antici- 
pations of  the  accepted  economic  teachings  of  to-day  which 
it  reveals.  Incidentally  it  enables  the  author,  with  his 
wide  acquaintance  with  the  best  English  economic  litera- 
ture, to  bring  out  many  interesting  contrasts  between  Chin- 
ese civilization  and  the  civilization  of  the  Occident.  His 
discussions  of  such  institutions  as  the  family,  marriage, 
private  property  and  the  position  of  woman  have  an  interest 
and  value  quite  apart  from  their  relation  to  the  main  pur- 
pose of  his  study. 

No  one  can  read  these  pages  without  becoming  convinced 
that  Confucianism  is  a  great  economic,  as  well  as  a  great 
moral  and  religious,  system  and  that  it  contains  most,  if 
not  all,  of  the  elements  necessary  to  the  solution  of  the 
serious  problems  that  confront  China  to-day.  That  these 
problems  may  be  speedily  and  happily  solved  and  that  Dr. 
Chen  may  take  the  prominent  and  distinguished  part  in  the 
reformation  of  his  country  for  which  his  high  character 
and  unusual  attainments  so  well  fit  him  is  the  earnest  hope 
of  his  American  friends. 

Henry  R.  Seager, 
Professor  of  Political  Economy. 

Columbia  University,  October  15,  1911. 

ix 


/ 


i\ 


AUTHOR'S  PREFACE 

The  following  treatise  includes  a  discussion  of  the  eco- 
nomic principles  of  the  chief  disciples  of  Confucius  in  suc- 
cessive dynasties,  as  well  as  of  the  teachings  of  the  Master 
himself,  and,  briefly  for  purposes  of  comparison,  of  the  lead- 
ers of  other  schools,  c.  g.,  those  of  Kuan  Tzu,  Lao  Tzu,  Mo 
Tzu,  Shang  Yang,  and  Hsii  Hsing.  It  was  deemed  best  to 
combine  with  the  discussion  of  economic  theory  some  con- 
sideration of  economic  history.  Consequently  the  condi- 
tions out  of  which  the  theories  arose  and  to  which  they  were 
to  be  applied  have  usually  been  described.  The  canonical 
writings  were  taken  as  primary  sources,  and  the  historical 
writings  as  secondary.  In  connection  with  every  theory 
and  institution  considered,  the  attempt  has  been  made  to 
throw  light  upon  its  origin  and  earliest  development.  Be- 
cause of  the  wealth  of  material,  only  the  most  important 
or  most  interesting  historical  facts  since  the  Han  dynasty 
have  received  attention.  Although  some  infomiation  in 
regard  to  conditions  in  China  to-day  is  given,  it  was  not 
thought  desirable  to  go  very  much  into  detail,  because 
these  conditions  are  in  process  of  revolutionary  change 
and  many  questions  are  still  unsettled. 

The  treatise  is,  therefore,  essentially  a  study  of  the  old 
regime  in  China.  It  is  a  survey  of  the  Chinese  thought 
and  Chinese  institutions  which  developed  independently  of 
the  Occident.  Although  my  arrangement  of  the  material 
follows  that  which  has  become  conventional  among  western 
writers  and  my  understanding  of  the  old  texts  was  greatly 
helped  by  western  thinkers,  I  have  been  very  careful  not  to 
read  into  the  writings  of  the  ancient  Chinese  ideas  drawn 
from  modern  western  economists.  All  my  statements  are 
based  upon  the  words  or  the  spirit  of  the  words  of  the 

xi 


xii  AUTHOR'S  PREFACE 

original  texts,  and  are  in  harmony  with  the  whole  system 
of  Confucius  as  revealed  by  a  comparative  study  of  the 
various  sources.  In  support  of  my  interpretation  numerous 
quotations  and  references  are  given.  The  Confucian  writ- 
ings may  be  compared  to  a  great  mountain  containing  rich 
mineral  resources.  I  am  in  tlie  position  of  a  miner,  ex- 
tracting a  particular  ore  and  contributing  it  to  the  world's 
production.  As  the  miner  does  not  create  the  ore  itself, 
but  through  his  labor  in  exploring,  digging  and  refining 
makes  it  available  for  human  use,  so  I  have  tried  to  add 
something  to  human  knowledge.  My  task  has  been  so 
great  that  I  have  doubtless  made  some  mistakes,  but  I  have 
earnestly  tried  to  be  accurate  in  all  my  statements.  This 
is  the  first  attempt  to  present  the  economic  principles  of 
Confucius  and  his  school  in  a  systematic  form  in  any  lan- 
guage. At  some  future  time  I  intend  to  translate  this  book 
into  Chinese. 

I  am  under  heavy  obligations  to  many  persons.  My 
greatest  indebtedness  is  to  Kang  Yu-wei,  my  former 
teacher,  from  whom  I  obtained  a  general  view  of  Confucian- 
ism. From  my  American  friends,  especially  among  the 
professors  and  students  of  Columbia  University — c.  /^. 
Professors  John  Bates  Clark,  Edwin  R.  A.  Seligman, 
Friedrich  Hirth  and  Warren  B.  Catlin — I  received  many 
ideas  and  secured  assistance  in  various  ways.  My  great- 
est obligations,  however,  are  to  Dr.  and  Mrs.  B.  M.  Ander- 
son, Jr.,  who  corrected  the  greater  part  of  my  manuscript; 
to  Professor  Henry  Rogers  Seager,  who  made  numerous 
suggestions  and  corrections  throughout  the  whole  book; 
and  to  Professor  Henry  Raymond  Mussey,  who  read  all 
the  proof  sheets. 

Chen  Huan-chang. 

Columbia  University,  New  York,  the  seventh  day  of  the  seventh 
month,  two  thousand  four  hundred  and  sixty-two  years  after 
Confucius,  {August  30,  1911  A.  D.). 


CONTENTS 


VOLUME  I 

Foreword.     By  Professor  Friedrich  Hirth vii 

Preface.        By  Professor  Henry  R.  Seager. ...     ix 

Author's  Preface xi 

PART  I 
INTRODUCTION 

BOOK  I.    CONFUCIUS  AND  HIS  SCHOOL 

CHAPTER  PAGE 

I.     Life  of  Confucius 3 

II,     The  Fundamental  Concepts  of  Confucius 15 

III.  Writings  of  Confucius  and  His  Disciples 23 

IV.  Historical  Movements  of  Confucianism 39 

BOOK  II.    RELATION  OF  ECONOMICS  TO  OTHER 

SCIENCES 

V.  Economics  and  Other  Sciences  in  General 48 

VI.  Economics  and  Sociology 52 

VII.  Economics  and  Politics •^2) 

VIII.  Economics  and  Ethics 94 

BOOK  HI.    GENERAL  ECONOMIC  PRINCIPLES 

IX.     Economic  Development  as  the  Chief  Cause  of  Progress  119 

X.     Economic  Organization 139 

XI.     Economic  Policies  and  the  Divisions  of  Economics 168 

xiii 


^i^  CONTENTS 

PART  II 
CONSUMPTION 

BOOK  IV.    CONSUMPTION 
CHAPTER  PAGE 

XII.     General  Principles  of  Consumption 185 

XIII.  Happiness  for  Both  Rich  and  Poor 207 

XIV.  Different  Ways  of  Getting  Pleasure 216 

XV.     General  Standard  of  Expenditure 242 

XVI.     Particular  Expenditures 269 


PART  III 
PRODUCTION 

BOOK  V.    FACTORS  OF  PRODUCTION 

XVII.     Three  Factors  of  Production 293 

XVIII.     Labor— Population 297 

XIX.     Nature  and  Capital 340 


VOLUME  II 

PART  III 
PRODUCTION 

BOOK  VI.  BRANCHES  OF  PRODUCTION 

XX.  Branches  of  Production  in  General 367 

XXI.  Agriculture 380 

XXII .  Industry 398 

XXIII.  Commerce. 411 

BOOK  VII.    DISTRIBUTION 

XXIV.     General  Principles  of  Distribution:  Rent,  Interest  and 

Profits 460 

XXV.     Wages. 480 


CONTENTS 


XV 


BOOK  VIII.    SOCIALISTIC  POLICIES 

CHAPTER  PAGE 

XXVI.     The  Tsing  Tien  System 497 

XXVII.     Monopoly  534 

XXVIII.  Exclusion  of  the  Ruling  Class  from  the  Economic  Field  543 

XXIX.     Government  Control  of  Demand  and  Supply 552 

XXX.     Government  Control  of  Grain 568 

XXXI.     Government  Loans  and  Public  Relief 586 

PART  IV 
PUBLIC  FINANCE 

BOOK  IX.    PUBLIC  FINANCE 

XXXII.     Public  Expenditures 605 

XXXIII.  Taxation  in  General 621 

XXXIV.  Direct  Taxes 638 

XXXV.     Indirect  Taxes 683 


PART   V 

CONCLUSION 

XXXVI.     Conclusion 717 

Appendix     I     Table  of  Chinese  Chronology 731 

Appendix  II     List  of  Authorities  in  English  and  Chinese y2)Z 

Index jt^j 


PART  I 
INTRODUCTION 


BOOK  I.     CONFUCIUS  AND  HIS  SCHOOL 


CHAPTER  I 

t 

Life  of  Confucius 

An  objective  attitude  toward  the  ideals  and  sages  of  one's 
own  country  is  not  easily  to  be  attained.  There  is  a  cor- 
responding difficulty  in  gaining  a  sufficiently  sympathetic 
attitude  toward  the  ideals  and  sages  of  a  strange  people. 
For  these  reasons  it  has  seemed  best  to  the  writer  to  under- 
take a  general  estimate  of  the  worth  of  Confucius  and  of 
Confucianism  at  the  end,  rather  than  at  the  beginning, 
of  this  study.  The  reader  who  has  gone  with  him  to  the 
conclusion  can  better  judge  how  far  the  estimate  is  ob- 
jective, after  seeing  the  evidence  on  which  it  is  based;  and 
he  will  also  be  better  enabled  to  view  the  problem  sympa- 
thetically. The  words  of  a  western  writer  shall,  therefore, 
serve  as  our  introduction. 

Von  der  Gabelentz  says: 

Quite  unique  is  the  position  occupied  by  him  who,  as  no 
other  man,  was  a  teacher  of  his  people,  who,  I  venture  to  say, 
has  become  and  continued  to  be  a  ruler  of  his  people,  the 
Sage  of  the  family  K'ung  in  the  State  of  Lu,  whom  we  know 
by  the  name  of  Confucius.  Unique  is  his  position,  not  only 
in  the  history  of  philosophy,  but  also  in  the  history  of  man- 
kind. For  there  is  hardly  any  other  man  who,  like  Confu- 
cius, incorporated  in  his  own  person  all  the  constituent  ele- 
ments of  the  Chinese  type  and  all  that  is  eternal  in  his  people's 

3 


4  THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

being.  If  we  are  to  measure  the  greatness  of  an  historic  per- 
sonage, I  can  see  only  one  standard  applicable  for  the  pur- 
pose: the  effectiveness  of  that  person's  influence  according  to 
its  dimensions,  duration,  and  intensity.  If  this  standard  be 
applied,  Confucius  was  one  of  the  greatest  of  men.  For  even 
at  the  present  day,  after  the  lapse  of  more  than  two  thousand 
years,  the  moral,  social,  and  political  life  of  about  one-third 
of  mankind  continues  to  be  under  the  full  influence  of  his 
mind.^ 

Confucius  has  indeed  been  the  maker  of  the  Chinese  peo- 
ple, but  he  himself  did  not  spring  from  an  uncivilized  world. 
The  date  of  the  beginning  of  Chinese  history  is  unknown, 
but  it  is  certain  that  China  has  existed  as  a  nation  for  at 
least  six  thousand  years.  The  first  leg-endary  emperor, 
Pao  Hsi,  or  Fu  Hsi,  is  placed  2402  years  before  the  Con- 
fucian era  (2953-2839  B.  C).  After  the  period  of  the  Five 
Emperors,  came  the  period  of  the  Three  Kings  of  as  many 
dynasties,  and  it  was  during  the  Chou  dynasty,  the  last  of 
these  three,  that  Chinese  civilization  reached  maturity.  It 
was  after  long  periods  of  so-called  sage  rulers  who  were 
regarded  as  the  heads  of  both  religion  and  government,  at 
the  highest  development  of  Chinese  civilization  under  the 
Chou  dynasty,  and  in  the  most  cultured  state  of  the  Duke 
of  Chou,  that  Confucius  appeared.  Confucianism,  the  new 
religion  founded  by  Confucius,  is  therefore  not  the  religion 
of  a  primitive  tribe,  but  the  religion  of  a  civilized  people. 

While  this  was  the  general  stage  of  development  preced- 
ing the  advent  of  Confucius,  it  must  not  be  imagined  that 
actual  conditions  during  his  time  were  so  perfect  as  to  make 
the  work  of  a  reformer  unnecessary.  The  age  of  Con- 
fucius was  quite  remote  from  that  of  the  sage  rulers.     With 

^  Confucius  und  seine  Lehre,  p.  4  et  seq.,  quoted  in  Friedrich  Hirth's 
The  Ancient  History  of  China,  pp.  242-3. 


LIFE  OF  CONFUCIUS  5 

the  beginning  of  Ping  Wang's  reign  (219  B.  K/  or  770  B. 
C),  the  Chou  dynasty  had  practically  fallen,  and  all  the 
emperors  of  the  Eastern  Chou  line  were  without  real  power. 
It  was  the  age  of  feudalism.  Each  feudal  estate  was  an  in- 
dependent nation,  each  prince  of  each  nation  fought  for  its 
supremacy,  and  the  power  of  the  princes  was  greater  than 
that  of  the  emperor.  During  Confucius'  time,  the  power  of 
the  prince  in  each  state  had  generally  fallen  into  the  hands 
of  a  few  noble  families,  and  the  government  had  become  a 
form  of  oligarchy.  Sometimes  the  private  officials  of  these 
families  took  public  affairs  into  their  own  hands.  The  con- 
fusion and  disorder  brought  about  by  the  ruling  class  ex- 
tended over  the  whole  empire,  while  the  common  people, 
who  were  not  sufficiently  educated  to  help  themselves,  were 
entirely  neglected. 

Although  the  great  mass  of  the  people  in  Confucius'  time 
was  uneducated,  there  was  a  middle  class  which  had  edu- 
cated itself.  Since  China  had  been  civilized  for  so  long  a 
time,  the  people  were  naturally  developed  to  some  extent. 
During  the  period  of  the  Eastern  Chou  dynasty,  although 
the  power  of  the  imperial  government  declined,  the  intel- 
lectual growth  of  the  people  increased.  The  greater  im- 
portance acquired  by  the  different  independent  states  with 
the  diminishing  power  of  the  emperor  gave  rise  to  much 
peaceful  diplomatic  intercourse  as  well  as  to  many  hostile 
military  expeditions,  and  these  forms  of  contact  had  an  edu- 
cative influence  upon  a  considerable  class  of  the  people. 
Further,  as  the  political  power  was  shifting  from  class  to 
class  and  from  person  to  person  within  each  state,  some 
noble  families  had  been  ruined,  and  some  common  people 
had  risen.     Thus  the  profession  of  learning  was  also  shifted 

'  \Vc  use  the  forms  B.  K.  and  A.  K.  to  avoid  confusion  with  the  C. 
in  the  western  chronology,  as  in  B.  C.  The  Chinese  form  of  the 
name,  Confucius,  is  K'ung  Fu  Tzu. 


6  THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

and  more  widely  diffused.  Moreover,  in  such  a  struggle, 
every  one  had  absolute  freedom  of  movement  and  of  speech. 
It  was  a  condition  very  favorable  to  the  development  of  the 
minds  of  the  people. 

Such  was  the  time  in  which  Confucius  was  born.  But 
the  birthplace  of  Confucius  was  no  less  important  than  his 
time.  His  family  had  settled  in  the  state  of  Lu,  which  was 
the  state  of  the  Duke  of  Chou.  As  the  Duke  himself  re- 
mained with  the  imperial  government,  he  gave  the  admin- 
istration of  his  estate  over  to  his  son,  who  conducted  it  ac- 
cording to  his  father's  principles  and  under  his  direction. 
Lu  had  become  the  center  of  Chinese  civilization.  About 
Confucius'  time,  Lu,  although  subordinate  to  the  great  states 
in  military  force,  was  supreme  in  art,  literature,  philosophy 
and  morality.  ^ 

Among  Confucius'  ancestors  was  Ch^eng  T^ang,  the 
founder  of  the  Yin  dynasty  (1215-1203  B.  K.  or  1766-1754 
B.  C).  After  the  fall  of  this  dynasty,  Wei  Tzu,  brother 
of  the  fallen  emperor,  was  enfeoffed  by  Chou  Ch'eng  Wang 
in  the  dukedom  of  Sung.  The  tenth  ancestor  of  Confucius 
resigned  his  dukedom  to  his  younger  brother,  and  thus  it 
passed  out  of  the  direct  line  of  Confucius.  Five  genera- 
tions later,  K'ung-fu  Chia,  the  sixth  ancestor  of  Confucius, 
invented  the  surname  of  ICung  from  his  adult  designation 
indicating  separation  from  the  house  of  the  duke  in  con- 
formity with  the  ancient  custom.  On  account  of  some 
political  trouble,  the  great-grandfather  of  Confucius  fled 
from  Sung  to  the  state  of  Lu,  and  became  mayor  in  the  city 
of  Fang.  Confucius'  father,  Shu-liang  Ho,  was  mayor  in 
the  city  of  Tsou,  and  distinguished  himself  as  a  brave  soldier. 
Since  on  reaching  the  age  of  sixty-four  he  had  no  heir  who 
could  be  his  successor,  he  was  obliged  to  marry  a  young 
girl,  Yen  Cheng-tsai,  who  became  the  mother  of  Confucius. 

The  year  of  Confucius'  birth,  according  to  the  Commen- 


LIFE  OF  CONFUCIUS  7 

taries  of  Kung-yang  and  Ku-liang,  was  the  twentieth  year 
of  Chou  Ling  Wang's  reign  (552  B.  C.) ;  but  the  beginning 
of  the  Confucian  era  is  dated  one  year  later  (551  B.  C.) 
on  account  of  a  mistake  made  by  Ssu-ma  Chien,  the  greatest 
historian/  His  birthday,  according  to  the  present  Chinese 
calendar,  is  the  twenty-first  day  of  the  eighth  month.  His 
birthplace  is  in  the  present  district  of  K'iihfeu,  Shantung 
province.  K'ung  was  his  family  name;  Ch'iu,  his  personal 
name;  and  Chung-ni,  his  adult  designation.  The  word  Con- 
fucius has  come  from  three  Chinese  words,  K'ung  Fu  Tzu, 
Fu  Tzu  meaning  master. 

Confucius  was  powerful  in  body  and  keen  in  mind.  He 
studied  under  many  masters  and  in  many  places,  becoming 
a  many-sided  and  versatile  man. 

The  greatest  sen-ice  of  Confucius  to  his  contemporaries 
was  as  a  teacher.  Opening  his  school  at  the  age  of  twenty- 
two,^  he  taught  continuously  to  the  time  of  his  death.  When 
he  was  thirty-five,  a  noble  of  one  of  the  leading  families  of 
Lu,  on  his  death-bed,  ordered  his  two  sons,  Meng  Yi-tzu 
and  Nan-kung  Ching-shu,  to  become  pupils  of  Confucius, 
and  these  two  noble  pupils  undoubtedly  increased  his  influ- 
ence. When  at  this  time  he  wished  to  visit  the  imperial 
capital,  Nan-kung  Ching-shu  advised  the  Marquis  of  Lu 
to  furnish  a  carriage,  two  horses  and  a  servant  for  him,  and 
himself  accompanied  his  teacher.  During  this  visit  a  very 
significant  interview  occurred  between  Confucius  and  Lao 
Tzii,  the  earliest  philosopher  of  the  Chou  dynasty,  then 
keeper  of  the  imperial  archives,  and  later  regarded  as  the 
founder  of  Taoism.  Confucius  consulted  this  learned  man 
concerning  the  rites,  questioned  Chang  Hung,  a  high  im- 

'  He  began  to  write  the  Historical  Record  in  448,  and  finished  it  in 
455   (104-97  B.  C). 

'  Canonical  Interpretation  of  the  Ts'ing  Dynasty,  vol.  xxxiii.  ch.  i. 


8  THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

perial  officer,  about  music,  and  studied  many  other  things. 
After  his  return  home,  his  pupils  increased  in  number. 

One  year  later,  on  account  of  a  civil  war,  Confucius  went 
to  the  neighboring  state  of  Ch'i.  The  Marquis  of  Ch'i  wished 
to  confer  upon  him  a  territory,  but  this  was  objected  to  by 
a  courtier  named  An  Tzu.  As  he  could  not  hold  a  good 
office  there,  Confucius  returned,  at  the  age  of  forty-two,  to 
Lu. 

After  his  return^  he  devoted  himself  exclusively  to  teach- 
ing and  writing  for  a  period  of  ten  years.  At  forty-eight, 
he  prepared  the  Canons  of  Poetry,  of  History,  of  Rites  and 
of  Music.  Many  pupils  now  came  to  him  from  remote  re- 
gions. But  he  was  so  anxious  to  secure  political  power  in 
order  to  reform  the  Chinese  world  that  he  even  considered 
accepting  the  invitations  of  the  rebels.  At  fifty-one,  when 
Kung-shan  Fu-jao,  who  held  the  city  of  Fei  in  rebellion 
against  the  minister  of  Lu,  invited  him  to  come,  Confucius 
was  disposed  to  comply.  He  said  that  if  any  one  would 
employ  him,  he  might  create  a  new  dynasty  of  Chou  in 
the  East.^  Ten  years  later,  at  sixty-one,  he  also  considered 
accepting  the  invitation  of  Pi  Hsi,  who  rebelled  with  the 
city  of  Chung-mou  against  the  minister  of  Tsin.^  Although 
he  did  not  go  to  see  these  two  rebels  at  all  and  refused  their 
invitations,  it  is  clear  that  his  love  and  faith  were  directed 
much  more  toward  the  general  public  than  toward  any  per- 
sonal ruler. 

The  political  career  of  Confucius,  although  not  an  im- 
portant part  of  his  life,  is  proof  of  his  practical  talents.  At 
fifty-two,  he  was  appointed  magistrate  of  the  city  of  Chung- 
tu  by  the  Marquis  of  Lu.  His  administration  was  very  suc- 
cessful, and  the  princes  of  neighboring  states  took  it  as  a 

'  The  Chinese  Classics,  vol.  i,  pp.  319-20. 
'  Ibid.,  p.  321. 


LIFE  OF  CONFUCIUS  9 

model/  At  fifty-three,  the  Marquis  appointed  him  Minister 
of  the  Interior,  and  then  Minister  of  Justice.  A  courtier 
of  the  state  of  Ch'i,  which  was  jealous  of  its  neighbor  Lu, 
warned  his  prince  that  the  increasing  influence  of  the  latter 
state  under  the  administration  of  Confucius  would  endanger 
the  balance  of  power.  His  prince,  therefore,  invited  the 
Marquis  of  Lu  to  come  Lo  a  friendly  meeting  in  order  to 
catch  him  and  make  him  prisoner.  Confucius  accompanied 
his  prince  as  substitute  for  the  prime  minister.  He  defeated 
the  treacherous  plot  through  his  speeches  and  through  a 
show  of  military  force,  so  that  Ch'i  was  obliged  to  apologize 
and  as  a  mark  of  friendship  to  restore  the  former  conquests 
which  it  had  made  from  Lu.  At  fifty-five,  Confucius 
strengthened  the  ruling  house  by  having  the  walls  of  the 
cities  of  the  noble  families  pulled  down.  Reaching  the 
height  of  civil  greatness,  he  became,  at  fifty-six,  the  acting 
prime  minister.  Within  seven  days,  he  ordered  the  execu- 
tion of  a  great  demagogue,  Shao-cheng  Mao,  as  being  dan- 
gerous to  the  public  welfare.  Within  three  months,  his 
moral  influence  prevailed  over  the  whole  state.  But  the 
neighboring  countries  began  to  fear  that  under  Confucius' 
reformation,  Lu  would  overtop  and  subdue  them  all.  To 
prevent  this,  the  Marquis  of  Ch'i,  above  referred  to,  sent 
eighty  beautiful  dancing  girls  and  one  hundred  and  twenty 
fine  horses  as  a  gift  to  the  prince  of  Lu  for  the  purpose  of 
bringing  about  a  separation  between  him  and  Confucius. 
The  result  was  the  demoralization  of  the  government,  as 
both  the  prince  and  the  real  prime  minister  neglected  their 
duties.  Confucius  lost  his  influence,  and  soon  left  his  native 
country  for  travel. 

Confucius'  travels  were  in  the  nature  of  missionary  work. 
He  aimed  to  establish  his  kingdom  in  the  actual  present 

'  Cf.  the  Historical  Record,  ch.  xlvii,  on  which  this  chapter  is  bn^cd. 


lO  THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

world  through  the  influence  of  a  government.  He  was  not 
a  narrow  patriot.  He  presented  himself  for  official  employ- 
ment before  seventy-two  princes,  and  even  in  the  barbaric 
state  of  Ch'u.  But  he  was  not  able  in  any  case  to  realize 
his  purpose.  He  was  satirized  by  many  of  his  contempor- 
aries who  felt  the  world  to  be  evil  and  kept  aloof  from  it. 
Confucius'  declaration  is  at  once  sane  and  pathetic :  ''  The 
bird  and  beast,"  said  he  sorrowfully,  "  cannot  be  in  the 
same  society  with  us.  If  I  do  not  associate  with  my  fellow- 
men,  with  whom  shall  I  associate?  Had  the  world  been 
perfect,  I  would  not  care  to  change  it !  "  ^  This  was  the 
spirit  of  Confucius:  to  love  the  world,  to  serve  the  world, 
and  to  busy  himself  restlessly  in  his  mission. 

Upon  four  different  occasions  during  his  travels,  his  life 
was  placed  in  jeopardy.  First,  at  fifty-seven,  he  was  im- 
prisoned by  the  people  of  the  city  of  K'uang  for  five  days. 
His  pupils  were  fearful,  but  he  said :  "  After  the  death  of 
Wen  Wang,  was  not  the  cause  of  truth  lodged  here  in  me? 
If  God  had  wished  to  let  this  cause  of  truth  perish,  then  I, 
his  successor  who  later  must  die,  should  not  have  been 
placed  in  such  a  relation  to  that  cause.  But  so  long  as  God 
does  not  let  the  cause  of  truth  perish,  what  can  the  people 
of  K'uang  do  to  me?  "  ^  Again,  at  fifty-eight,  when  with 
his  pupils  he  was  performing  religious  ceremonies  under  the 
shade  of  a  large  tree,  Huan  Tui,  the  minister  of  war  of  the 
state  of  Sung,  who  wished  to  kill  him,  had  the  tree  cut 
down.  Then  his  pupils  warned  him  to  go  away  at  once. 
"  God  has  produced,"  said  he,  "  the  virtue  that  is  in  me. 

^  Classics,  vol.  i,  p.  334, 

2  Confucius  here  indentifies  himself  with  the  line  of  the  great  sage 
rulers  to  whom  God  had  intrusted  the  instruction  of  men.  In  all  the 
six  centuries  between  himself  and  Wen  Wang  (673-584  B.  K.),  he  does 
not  admit  of  such  another.     Ibid.,  pp.  217-8. 


LIFE  OF  CONFUCIUS  II 

What  can  Huan  Tui  do  to  me?  "  ^  It  is  clear  that  he  felt 
that  God  had  committed  lo  him  the  right  way,  and  that  he 
bore  a  charmed  life  until  his  work  was  done.  Again,  at 
fifty-nine,  he  was  stopped  by  the  rebels  in  the  city  of  Po. 
But  one  of  his  pupils,  Kung-liang  Yii,  who  was  following 
his  master  with  five  private  chariots,  fought  bravely  for 
him,  and  he  was  allowed  to  proceed.  Once  more,  at  sixty- 
four,  he  was  surrounded  by  the  officials  of  the  states  of 
Chen  and  Tsai.  He  was  without  food  for  seven  days,  and 
his  pupils  were  so  sick  as  to  be  unable  to  rise.  But  he  never 
stopped  preaching,  reading,  playing  on  the  harp  and  sing- 
ing. Finally  he  was  rescued  by  the  military  force  of  the 
state  of  Ch'u. 

When  he  arrived  at  Ch*u,  the  king  wished  to  confer 
upon  him  a  territory  of  seven  hundred  square  miles.  But 
the  prime  minister  objected,  because  he  feared  Confucius' 
power  and  virtues,  saying  that  the  latter's  pupils  were  much 
better  than  any  of  their  own  officials,  and  that  if  Confucius 
could  occupy  any  territory,  he  himself  would  eventually  be 
a  real  king  and  this  would  not  be  good  for  their  state. 

Having  spent  fourteen  years  in  traveling  abroad,  Con- 
fucius was  now,  at  sixty-nine,  called  back  by  the  government 
of  his  native  state.  But  the  government  did  not  finally  em- 
ploy him,  and  he  himself  at  this  period  had  no  desire  to 
be  employed.  About  this  time,  his  son  died;  his  wife  had 
died  two  years  previously. 

Confucius  was  destined,  however,  not  chiefly  to  serve 
his  own  immediate  period,  but  to  influence  endless  ages  of 
the  future.  He  now  spent  all  his  time  in  writing,  and  this 
was,  in  the  final  analysis,  his  greatest  work.  As  he  had  at 
the  age  of  forty-eight  already  prepared  the  greater  part  of 
the  Canons  of  Poetry,  of  History,  of  Rites,  and  of  Music, 

'  Classics,  vol.  i,  p.  202. 


12  THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

he  now  finished  them,  and  also  the  Canon  of  Changes.  The 
Spring  and  Autumn  was  written  at  the  age  of  seventy-two. 

What  he  wrote  was  very  much  the  same  as  what  he  was 
teaching  to  his  three  thousand  pupils,  particularly  the  Can- 
ons of  Poetry,  History,  Rites  and  Music,  Those  who  grad- 
uated in  the  six  arts — rites,  music,  archery,  charioteering, 
writing  and  mathematics — which  were  all  prescribed  courses 
for  each  person,  were  seventy-two  in  number.  His  best  stu- 
dents were  those  who  specialized  in  morality,  oratory,  poli- 
tics and  literature.  There  were  many  special  students. 
Therefore,  the  number  of  his  followers  amounted  to  sixty 
thousand. 

Confucius  was  already  an  old  man  when  he  finished  his 
writings ;  they  were  the  product  of  his  most  mature  wisdom. 
He  now  felt  that  his  work  was  done.  One  morning,  he  got 
up  early,  and  as  he  walked  back  and  forth  before  his  door 
with  his  hands  behind  his  back  dragging  his  staff,  he  sang 
the  following  words : 

The  Tai  Mountain  must  crumble ! 
The  strongest  beam  must  break ! 
The  wisest  man  must  fade ! 

Seven  days  later,  the  death  of  "  The  Perfect  Holy  Man  " 
took  place.^    He  was  seventy-four  years  old  (479  B.  C). 

The  highest  honors  were  bestowed  upon  him  after  his 
death.  The  Marquis  of  Lu  came  to  pass  eulogy  upon  him. 
He  was  buried  in  what  is  now  called  the  Forest  of  K*ung, 
to  which  the  trees  were  originally  brought  from  different 
states  by  his  pupils.  His  pupils  stayed  there  until  the  end 
of  three  years'  mourning,  but  Tzu-kung  (his  pupil)  alone 
built  a  house  near  his  tomb  and  lived  there  for  three  years 
more.     Some  of  his  pupils  and  some  of  the  people  of  Lu, 

*  According  to  the  present  Chinese  calendar,  the  corresponding  date 
is  the  eleventh  day  of  the  second  month. 


LIFE  OF  CONFUCIUS 


13 


more  than  one  hundred  families  in  all,  moved  to  the  vicinity 
of  his  tomb  and  formed  what  was  called  the  Village  of 
K'ung.  The  people  sacrificed  to  his  tomb  for  many  genera- 
tions, and  the  Confucian  scholars  also  practised  different 
ceremonies  about  it.  His  house  was  then  converted  into  a 
temple  in  which  his  clothes,  hats,  harp,  carriage  and  books 
were  stored.  The  first  emperor  who  came  to  worship  him 
was  Han  Kao  Ti  (357  A.  K.  or  195  B.  C).  When  new 
princes  and  governors  first  came  to  the  state,  they  always 
worshiped  him  before  they  took  up  their  ofiicial  duties. 
Since  504  A.  K.  the  descendants  of  Confucius  have  been  a 
permanent  nobility.  The  present  duke  of  his  descendants 
is  in  the  seventy-sixth  generation  from  him.  In  610  A.  K. 
(59  A.  D.),  Han  Ming  Ti  first  ordered  the  Imperial  Uni- 
versity and  all  the  government  schools  in  each  district  to 
worship  Confucius.  Since  that  time  the  school  houses  have 
been  at  the  same  time  Confucian  churches,  and  they  have 
been  established  throughout  the  whole  empire. 

In  conclusion,  then,  we  may  say  that  Confucius  was  a 
great  philosopher,  a  great  educator,  a  great  statesman,  and  a 
great  musician ;  but,  above  all,  that  he  was  the  founder  of  a 
great  religion.  This  is  well  stated  by  Tzu-kung  when  he 
says :  "  Certainly  God  has  endowed  him  unlimitedly  as  a 
great  sage,  and,  moreover,  his  ability  is  various."  ^  Yu  Jo. 
pupil  of  Confucius,  said,  "  From  the  birth  of  mankind  till 
now,  there  never  has  been  one  so  complete  as  Confucius," 
and  the  same  statement  is  also  given  by  Tzu-kung  and 
Mencius  (180-263  A.  K.  or  372-289  B.  C.).^  In  the  ^ho- 
Iccts*  Confucius,  by  tacit  implication,  compares  himself  with 
God,  and  in  the  "  Doctrine  of  the  Mean."  *  Confucius  is 

'  Classics,  vol.  i,  p.  218. 
2  Classics,  vol.  ii,  pp.   194-6. 
'  Classics,  vol.  i,  p.  326. 
*  Ibid.,  p.  429. 


14         THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

called  **  the  equal  of  God  ".  The  Chinese  worship  him  not 
from  any  superstitious  idea,  but  on  the  philosophical  ground 
that  "  the  individual  possessed  of  the  most  complete  sincerity- 
is  regarded  as  divine  ",  ^  and  that  "  v^hen  the  sage  is  beyond 
our  knowledge,  he  is  what  is  called  divine/'  ^  Although 
Confucius  died  about  twenty-five  centuries  ago,  the  Chinese 
believe  that  his  fundamental  teachings  will  remain  true  for- 
ever. This  is  because,  on  the  one  hand,  the  teachings,  based 
on  the  doctrine  of  the  mean,  never  go  to  extremes ;  and  on 
the  other,  being  subject  to  the  doctrine  of  changes,  they 
easily  adapt  themselves  to  the  environment.  Confucius  is 
called  by  Mencius  "The  Sage  of  Times".  In  fact,  the 
teachings  of  Confucius  are  based  on  the  nature  of  man,* 
and  as  long  as  we  are  human  beings,  no  matter  in  what  age 
or  in  what  region  we  may  live,  we  can  learn  from  him. 
Hence,  the  Chinese  believe  that  there  has  been  no  other  man 
so  great  as  Confucius. 

1  Classics,  vol.  i,  p.  418. 
'  Classics,  vol.  ii,  p.  490. 
'  Classics,  vol.  i,  p.  393. 


CHAPTER  II 

The  Fundamental  Concepts  of  Confucius 

Having  reviewed  the  more  important  facts  of  Confucius' 
life,  we  pass  now  to  the  fundamental  concepts  of  the  whole 
Confucian  philosophy.  There  are  two  general  classes  of 
these  concepts,  one  class  based  on  the  law  of  variety,  and  the 
other  on  the  law  of  unity;  the  one,  changeable  with  the  needs 
of  the  times,  the  other  unchangeable,  rooted  in  the  nature 
of  man.  Of  the  first  type  are  the  principle  of  the  Three  Sys- 
tems and  the  principle  of  the  Three  Stages ;  of  the  second  is 
the  principle  of  love,  which  is  to  be  practised  on  the  basis  of 
reciprocity. 

I.    THE  THREE  SYSTEMS 

Confucius  is  like  a  great  physician,  and  his  teachings  are 
like  prescriptions.  Just  as  the  great  physician  never  gives 
a  single  kind  of  medicine  as  a  remedy  for  all  diseases,  so 
Confucius  never  gives  a  single  form  of  teaching  as  the  law 
of  all  ages.  In  the  Springy  and  Autumn,  he  sets  forth  the 
principle  of  the  Three  Systems,  and  we  meet  this  principle 
in  all  his  writings.  The  Three  Systems  are  represented  by 
the  Three  Dynasties,  Hsia,  Yin  and  Chou,  and  he  makes 
everything  in  three  different  forms.  For  example,  the  new 
year  begins  with  either  the  first  month,  or  the  second,  or  the 
third;  the  new  day  begins  either  in  the  morning,  or  in  the 
middle  between  morning  and  midnight,  or  at  midnight;  the 
principal  color  is  either  black,  or  white,  or  red.  There  is 
not  a  certain  form,  but  the  one  is  as  good  as  the  others. 
Hence  the  principles  of  the  Three  Dynasties  are  as  in  a  cycle, 

IS 


1 6         THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

— the  one  succeeds  the  other,  whenever  the  former  principle 
does  not  work  well.  The  fundamental  concept  is  that  all 
human  civilization  and  social  life  are  necessarily  changed  in 
order  to  reform  the  evil  of  the  past  and  meet  the  need  of 
the  present.  Any  good  thing  must  come  to  a  period  of 
decay  and  become  an  evil.  Civilization  may  run  through  a 
long  course  to  the  original  principle  and  then  start  again, 
although  such  a  principle  may  not  take  exactly  the  original 
form.  Or,  in  different  places,  different  civilizations  and  in- 
stitutions may  exist  at  the  same  time. 

II.    THE  THREE  STAGES 

A  principle  more  important  than  the  Three  Systems  is  the 
Three  Stages.  In  the  first  of  these,  the  Disorderly  Stage, 
primitive  civilization  is  just  arising  from  chaos,  and  the 
social  mind  is  still  very  rude.  There  is  a  sharp  distinction 
between  one's  own  country  and  all  other  civilized  countries. 
Hence  attention  is  paid  more  to  conditions  at  home  than 
abroad,  and,  except  the  great  powers,  the  small  countries 
are  neglected.  In  the  second,  the  Advancing  Peace  Stage, 
there  is  a  distinction  only  between  all  the  civilized  coun- 
tries and  the  barbarians.  The  limit  of  civilization  is 
broader,  and  the  friendship  of  nations  is  closer ;  by  the  equal 
right,  even  the  small  countries  can  have  their  representatives. 
In  the  third,  the  Extreme  Peace  Stage,  there  is  no  dis- 
tinction at  all.  The  barbarians  become  civilized  countries, 
and  obtain  the  same  title  in  the  diplomatic  circle.  Whether 
the  nations  are  remote  or  near,  small  or  great,  the  whole 
world  is  as  one  unit,  and  the  character  of  mankind  is  on 
the  highest  plane. 

The  principle  of  the  Three  Stages,  illustrated  by  the  inter- 
national relation,  is  established  in  the  Spring  and  Autumn} 

1  It  is  very  strange  that  Professor  James  Legge  apparently  does  not 
know  the  international  view  of  Confucius  at  all.    He  says:  "Confucius 


FUNDAMENTAL  CONCEPTS  OF  CONFUCIUS 


17 


But  we  can  find  this  principle  in  all  Confucius'  writings, 
whatever  the  subject.  For  example,  in  politics,  despotism, 
constitutionalism  and  anarchism  are  three  stages ;  in  re- 
ligion, polytheism,  monism  and  atheism  are  three  stages. 
The  three  stages  can  be  subdivided  into  nine,  eighty-one, 
and  so  on.  It  is  simply  the  theory  of  progress,  or  evolution. 
But  we  must  remember  this  principle  in  order  to  understand 
that  the  teachings  of  Confucius,  although  sometimes  appar- 
ently inconsistent,  are  all  fitted  to  different  stages,  and  that 
we  must  not  make  the  mistake  of  applying  the  theories  of 
the  low  stage  to  the  advanced  stage. 

The  Advancing  Peace  Stage  is  also  called  the  Small  Tran- 
quillity, and  the  Extreme  Peace  Stage,  the  Great  Similarity. 
The  marked  difference  between  these  two  stages  is  described 
by  Confucius  himself.     It  is  a  most  important  passage,  and 

makes  no  provision  for  the  intercourse  of  his  country  with  other  and  in- 
dependent nations.  He  knew  indeed  of  none  such.  China  was  to  him 
'The  Middle  Kingdom,'  'The  multitude  of  Great  States,'  'All  under 
Heaven.'  Beyond  it  were  only  rude  and  barbarous  tribes."  (Chinese 
Classics,  vol.  i,  pp.  107-8.)  This  statement  is  quite  misleading.  Con- 
fucius has  made  many  provisions  for  the  intercourse  of  his  country 
with  other  and  independent  nations ;  and  we  can  compile  the  Inter- 
national Law  of  Confucius  even  from  the  Spring  and  Autumn  only. 
In  Confucius'  time,  China  was  divided  up  into  many  nations.  The  num- 
ber of  leading  nations  w-as  twelve,  and  the  total  number  of  nations 
was  over  one  hundred.  Therefore,  his  country  was  not  China,  but  Lu. 
Since  Lu  had  intercourse  continuously  with  other  and  independent 
nations,  why  should  Confucius  know  nothing  about  them?  These 
nations  were  called  "  The  multitude  of  Great  States  "  and  "  The  Middle 
Kingdom."  This  was  the  international  society,  and  the  term  Middle 
Kingdom  was  like  the  term  Christendom.  Beyond  this,  there  were  at 
this  time  only  rude  and  barbarous  tribes,  so  far  as  the  Chinese  knew. 
This  was  the  condition  under  which  Confucius  lived.  By  the  term 
"All  under  Heaven,"  however,  Confucius  really  meant  the  whole  world, 
and  it  included  not  only  th€  multitude  of  great  states,  but  also  all  the 
barbarous  tribes.  Although  it  was  sometimes  used  to  cover  only  the 
Chinese  world,  such  a  term,  everyone  can  see,  could  never  mean  a 
national  state.  In  fact,  Confucius  always  keeps  the  whole  world  in 
his  mind. 


1 8  THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

we  must  quote  it  fully.     In  the  ''  Evolution  of  Civilization," 
Confucius  says: 

When  the  Great  Principle  [of  the  Great  Similarity]  prevails,  the 
whole  world  becomes  a  republic ;  they  elect  men  of  talents,  vir- 
tue, and  ability ;  they  talk  about  sincere  agreement,  and  cultivate 
universal  peace.  Thus  men  do  not  regard  as  their  parents  only 
their  own  parents,  nor  treat  as  their  children  only  their  own 
children.  A  competent  provision  is  secured  for  the  aged  till  their 
death,  employment  for  the  middle-aged,  and  the  means  of  grow- 
ing up  to  the  young.  The  widowers,  widows,  orphans,  childless 
men,  and  those  who  are  disabled  by  disease,  are  all  sufficiently 
maintained.  Each  man  has  his  rights,  and  each  woman  her 
individuality  safe-guarded.  They  produce  wealth,  disliking 
that  it  should  be  thrown  away  upon  the  ground,  but  not  wish- 
ing to  keep  it  for  their  own  gratification.  Disliking  idle- 
ness, they  labor,  but  not  alone  with  a  view  to  their  own  ad- 
vantage. In  this  way  selfish  schemings  are  repressed  and  find 
no  way  to  arise.  Robbers,  filchers  and  rebellious  traitors  do 
not  exist.  Hence  the  outer  doors  remain  open,  and  are  not 
shut.     This  is  the  stage  of  what  I  call  the  Great  Similarity. 

Now  that  the  Great  Principle  has  not  yet  been  developed,  the 
world  is  inherited  through  family.     Each  one  regards  as  his 
parents  only  his  own  parents,  and  treats  as  his  children  only  his 
own  children.    The  wealth  of  each  and  his  labor  are  only  for  his 
self-interest.    Great  men  imagine  it  is  the  rule  that  their  estates 
should  descend  in  their  own  families.    Their  object  is  to  make 
the  walls  of  their  cities  and  suburbs  strong  and  their  ditches 
and  moats  secure.    Rites  and  justice  are  regarded  as  the  threads 
by  which  they  seek  to  maintain  in  its  correctness  the  relation 
between   ruler  and  minister;  in  its  generous  regard  that  be- 
tween   father   and   son;   in   its   harmony   that   between   elder 
brother  and  younger ;  and  in  a  community  of  sentiment  that 
between  husband  and  wife;  and  in  accordance  with  them  they 
regulate   consumption,   distribute   land   and   dwellings,   distin- 
guish the  men  of  military  ability  and  cunning,  and  achieve 
their  work  with  a  view  to  their  own  advantage.     Thus  it  is 


FUNDAMENTAL  CONCEPTS  OF  CONFUCIUS 


19 


that  selfish  schemes  and  enterprises  are  constantly  taking  their 
rise,  and  war  is  inevitably  forthcoming.  In  this  course  of 
rites  and  justice,  Yii,  T'ang,  Wen,  Wu,  Ch'eng  Wang  and  the 
Duke  of  Chou  are  the  best  examples  of  good  government.  Of 
these  six  superior  men,  every  one  was  attentive  to  the 
rites,  thus  to  secure  the  display  of  justice,  the  realization  of 
sincerity,  the  exhibition  of  errors,  the  exemplification  of 
benevolence,  and  the  discussion  of  courtesy,  showing  the  people 
all  the  constant  virtues.  If  any  ruler,  having  power  and  posi- 
tion, would  not  follow  this  course,  he  should  be  driven  away 
by  the  multitude  who  regard  him  as  a  public  enemy.  This 
is  the  stage  of  what  I  call  the  Small  Tranquillity.^ 

This  is  the  most  important  statement  of  all  Confucius' 
teachings.  The  stage  of  Great  Similarity  or  Extreme  Peace 
is  the  final  aim  of  Confucius;  it  is  the  golden  age  of  Con- 
fucianism. If  we  make  a  comparison  between  the  Great 
Similarity  and  the  Small  Tranquillity,  we  may  get  a  clear 
view.  Every  one  knows  that  Confucianism  has  five  social 
relations  and  five  moral  constants :  ruler  and  subject,  father 
and  son,  elder  and  younger  brothers,  husband  and  wife, 
friend  and  friend,  make  up  the  five  social  relations;  love, 
justice,  rite,  wisdom  and  sincerity,  make  up  the  five  moral 
constants.  But,  according  to  the  statement  of  Confucius 
himself,  they  belong  only  to  the  Small  Tranquillity.  Every 
one  knows  that  Confucianism  is  in  favor  of  monarchical 
government  and  of  filial  piety.  But  they  are  good  only  in 
the  Small  Tranquillity.  In  the  Great  Similarity,  the  whole 
world  is  the  only  social  organization,  and  the  individual  is 
the  independent  unit;  both  socialistic  and  individualistic 
characters  reach  the  highest  point.  There  is  no  national 
state,  so  that  there  is  no  war,  no  need  of  defence,  nor  01 
men  of  military  ability  and  cunning.    Men  of  talents,  virtue, 

1  Li  Ki,  bk.  vii,  pp.  365-7.  "  The  exhibition  of  errors  "  refers  to  wis- 
dom, and  "the  discussion  of  courtesy"  to  rites. 


20         THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

and  ability  are  chosen  by  the  people,  so  that  the  people  them- 
selves are  the  sovereign,  and  the  relation  between  ruler  and 
subject  does  not  exist.  Man  and  woman  are  not  bound 
by  the  tie  of  marriage,  so  that  the  relations  between 
husband  and  wife,  between  father  and  son  and  between 
brothers,  do  not  exist.  The  only  relation  that  remains  is 
friendship.  There  is  no  family,  so  that  there  is  no  inheri- 
tance, no  private  property,  no  selfish  scheme.  There  is  no 
class,  so  that  the  only  classification  is  made  either  by  age 
or  by  sex ;  but  whether  old,  middle-aged,  or  young,  whether 
man  or  woman,  each  satisfies  his  needs.  The  Great  Prin- 
ciple of  the  Great  Similarity  prevails,  so  that  everyone  is 
naturally  as  good  as  every  one  else  and  the  distinction  of  the 
five  moral  constants  is  gone.  Each  has  only  natural  love 
toward  others,  regardless  of  artificial  rites  and  justice. 
Speaking  of  the  Small  Tranquillity,  Confucius  gives  six 
superior  men  as  examples,  but  for  the  Great  Similarity,  he 
does  not  mention  any  one,  because  it  has  never  existed.  In 
the  Canon  of  History,  Confucius  takes  up  Yao  and  Shun 
to  represent  the  stage  of  Great  Similarity  as  they  did  not 
hand  down  their  thrones  to  their  sons,  yet  he  does  not  men- 
tion them  here.  The  principle  of  the  Three  Stages  is  the 
principle  of  progress ;  we  must  look  for  the  golden  age  in 
the  future;  the  Extreme  Peace  or  the  Great  Similarity  is 
the  goal. 

III.    LOVE 

Both  the  Three  Systems  and  the  Three  Stages  come 
under  the  law  of  variety  in  accordance  with  external  con- 
ditions; the  law  of  unity  is  based  on  the  inner  nature  of 
man.  It  is  the  principle  of  love.  From  the  religious  point 
of  view,  the  unity  is  called  God;  from  the  philosoph- 
ical   point   of   view,   it   is   called    Yuan;   from   the   ethical 


FUNDAMENTAL  CONCEPTS  OF  CONFUCIUS  21 

point  of  view,  it  is  called  love.^  These  three  names  are 
based  on  the  same  principle,  because  it  is  a  unity.  The  unity 
of  the  universe  is  nothing  but  love.  The  cement  of  the 
universe  is  called  God  or  Viian,  and  that  of  society  is  called 
love.  Confucius  says  "  Love  is  man  ",  and  Mencius  repeats 
the  same  words. ^  If  we  put  it  into  negative  form,  any  one 
who  does  not  conform  to  the  principle  of  love  is  not  a  man. 

IV.    RECIPROCITY 

There  is  a  question  as  to  how  we  should  practice  the  prin- 
ciple of  love.  After  Confucius  said  to  Ts'eng-Tzu,  his 
pupil,  "  My  doctrine  is  that  of  an  all-pervading  unity  ", 
Ts'eng-Tzu  explained  to  other  pupils  that  the  unity  is  simply 
faithfulness  and  reciprocity.^  Confucius  himself  says : 
*'  Faithfulness  and  reciprocity  are  not  far  from  the  way. 
What  you  do  not  wish  when  done  to  yourself,  do  not  do  to 
others."  *  We  can  see,  therefore,  that  faithfulness  and 
reciprocity  both  make  up  the  unity,  but  faithfulness  is  in- 
cluded in  the  principle  of  reciprocity.  When  Tzu-kung 
asked,  "  Is  there  one  word  which  may  serve  as  a  rule  of 
practice  for  all  one's  life?"  Confucius  said,  "Is  not  reci- 
procity such  a  word  ?  What  you  do  not  want  done  to  your- 
self, do  not  do  to  others."  ''  Stating  this  golden  rule  posi- 
tively, Confucius  says:  "The  man  who  practices  the  prin- 
ciple of  love,  wishing  to  establish  himself,  seeks  also  to  es- 
tablish others;  wishing  to  develop  himself,  he  seeks  also 
to  develop  others.     To  be  able  to  take  one's  inmost  self  for 

^  See  Yi  King,  pp.  408,  415.  Legge's  translation  is  obscure.  The 
word  Ch'ien  means  God,  and  also  the  word  Yiian,  "  the  great  and  orig- 
inating."   The  word  benevolence  is  love, 

'  Classics,  vol,  i,  p.  405 ;  and  vol.  ii,  p.  485. 

•  Classics,  vol.  i,  pp.  169-170. 

*  Ibid.,  p.  394. 

t 

'  Ibid.,  p.  301. 


22         THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

the  judging  of  others  may  be  called  the  art  of  applying  the 
principle  of  love."  ^  This  principle  makes  egotism  and 
altruism  into  one  and  the  same  thing,  and  makes  one  regard 
others  as  oneself.  In  short,  the  principle  of  love  is  the  end, 
and  the  law  of  reciprocity  is  the  means.  This  is  the  unity 
of  Confucianism. 

^  Classics,  vol.  i,  p.  194. 


CHAPTER  III 
Writings  of  Confucius  and  His  Disciples 

I.    writings  of  CONFUCIUS 

We  have  said  that  the  work  of  Confucius  is  no  greater 
than  his  writings.  Let  us  now  consider  what  his  writings 
are.  Since  they  are  called  the  Holy  Bible,^  and  are  the 
oldest  and  best  literature  of  the  Chinese,  they  occupy  the 
first  department  of  the  Chinese  library.  The  study  of  them 
is  very  difficult;  many  good  scholars,  spending  their  whole 
lives,  study  thoroughly  merely  a  part  of  them;  yet  their 
principles  can  never  be  exhausted.  The  writings  on  the 
subject  of  the  Confucian  Bible,  therefore,  are  most  numer- 
ous. But  we  shall  give  the  essentials  in  the  most  condensed 
way. 

^  Since  the  Chinese  word  for  "  Bible  "  was  mistranslated  by  Professor 
James  Legge  into  the  word  "  Classic,"  there  has  been  much  misunder- 
standing of  the  nature  of  Confucius'  writings.  It  must  be  contended 
that  these  writings  arc  regarded  as  divinely  inspired,  because  Confu- 
cius himself  is  considered  to  have  been  divinely  sent  and  appointed. 
(C/.  passage  from  the  Adjunct  to  the  Spring  and  Autumn^  quoted  in 
the  Annotation  of  Kung-yang.  14th  year  of  Duke  Ai).  An  account 
given  in  the  Adjunct  to  the  Canon  of  Filial  Piety,  in  which  Confucius 
is  represented  as  reporting  to  God  the  completion  of  his  writings 
and  as  receiving  divine  approval  in  the  form  of  a  red  rainbow  com- 
ing down  from  above  and  transmitting  itself  into  yellow  jade  with 
words  sculptured  upon  it,  would  seem  to  give  to  the  religion  and  writ- 
ings of  Confucius  in  the  minds  of  the  Chinese  people  the  same  claim 
to  a  sacred  character  as  other  religions  and  Bibles  possess  for  the 
people  who  accept  them.  But  the  real  value  of  the  writings  of  Con- 
fucius is  not  based  on  such  a  story. 

23 


24 


THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 


All  the  different  writings  of  Confucius  himself  are  called 
Bibles.  But  as  the  word  is  not  ordinarily  used  in  the  plural 
in  English,  we  are  obliged  to  adopt  the  word  "  Canon." 
Originally,  the  Chinese  called  them  Ching,  which  means 
Bible.  We  shall  review  them  according  to  their  original 
order,  as  follows : 

1.  The  Canon  of  Poetry  contains  three  hundred  and  five 
poems.  Except  the  first  two  poems  of  "  The  Odes  of  Pin," 
they  were  all  written  by  different  authors  in  the  Chou 
dynasty  (about  631-47  B.  K.  or  1182-598  B.  C),  but  they 
are  edited  by  Confucius  according  to  his  own  principles. 
How  many  corrections  have  been  made  by  him  we  do  not 
know,  but  we  are  sure  that  he  must  have  changed  the  origi- 
nal words  in  some  way.  The  poems  are  divided  into  three 
kinds :  the  Feng,  spirits  of  different  nations ;  the  Ya,  politics 
of  the  imperial  government ;  the  Sung,  praises  in  the  temples. 
Because  politics  is  concerned  with  great  and  small  questions, 
the  Ya  is  divided  up  again  into  Small  Ya  and  Great  Ya, 
Hence,  this  Canon  has  four  parts.  All  the  poems  are  the 
expression  of  human  nature;  the  description,  narration,  or 
criticism  of  social  and  political  conditions.  Their  character 
is  somewhat  like  that  of  a  newspaper,  and  they  serve  as  a 
comparative  study  of  political  science.  This  Canon  is  also 
a  song  book,  as  all  the  poems  can  be  sung  in  harmony  with 
music. 

2.  The  Canon  of  History  has  twenty-eight  books.  It 
covers  the  history  of  China  from  Yao  (1806- 1707  B.  K. 
or  2357-2258  B.  C.)  to  Duke  Mu  of  Ch'in  (108-70  B.  K. 
or  659-621  B.  C),  and  gives  all  the  most  important  docu- 
ments of  this  period.  These  documents  were  written  by  dif- 
ferent authors,  and  edited  by  Confucius.  But  the  labor 
Confucius  put  on  this  Canon  is  evidently  greater  than  that 
put  on  the  Canon  of  Poetry.  The  "  System  of  Yao,"  the 
"  Tribute  of  Yii,"  the  ''  Great  Model,"  and  the  "  Code  of 


WRITINGS  OF  CONFUCIUS  AND  HIS  DISCIPLES 


25 


Po,"  are  apparently  the  works  of  Confucius  himself,  be- 
cause their  style  is  different  from  that  of  the  other  docu- 
ments and  similar  to  the  style  of  Confucius.  This  Canon 
is  a  study  of  history  and  political  science. 

3.  The  Canon  of  Rites  has  seventeen  books,  and  describes 
the  details  of  the  eight  rites.  These  eight  rites  are :  ( i )  cap- 
ping for  the  indication  of  maturity,  (2)  marriage,  (3)  fun- 
eral, (4)  sacrifice,  (5)  district-drinking,  (6)  game  of  arch- 
ery, (7)  diplomatic  intercourse,  and  (8)  visiting  of  the  em- 
peror by  the  princes.  These  eight  rites  are  the  rules  govern- 
ing the  five  social  relations :  The  rites  of  capping  and  mar- 
riage govern  the  relation  of  husband  and  wife;  the  rites  of 
funeral  and  sacrifice,  that  of  father  and  son;  the  rites  of 
district-drinking  and  archery,  that  of  seniors  and  juniors; 
the  rites  of  diplomatic  intercourse  and  visiting  of  the  em- 
peror, that  of  ruler  and  minister.  For  the  relation  of  friends, 
there  are  the  third  book  on  social  intercourse,  the  twelfth 
book  on  feasting,  and  the  fifteenth  book  on  the  rites  of  enter- 
taining great  officials  by  a  prince.  Moreover,  through  all 
the  different  rites  there  must  be  two  parties,  host  and  guest ; 
hence  the  relation  of  friend  to  friend  is  within  all  the  rites. 
Such  rites  are  the  old  customs  and  manners,  but  they  are  col- 
lected and  prescribed  by  Confucius.  This  Canon  is  now 
miscalled  Vi  Li. 

4.  The  Canon  of  Music.  Since  the  songs  are  all  in  the 
Canon  of  Poetry,  and  the  different  uses  of  music  are  pre- 
scribed in  the  Canon  of  Rites,  there  was  no  need  to  have  a 
canon  for  music  like  the  other  Five  Canons.  But  there 
must  originally  have  been  a  Canon  of  Music,  though  dif- 
ferent in  form  from  the  others,  having  notes  instead  of 
words.  Unfortunately  it  was  lost  during  the  Han  dynasty, 
(after  636  A.  K.  or  85  A.  D.).  Therefore,  we  generally 
speak  only  of  the  Five  Canons. 

5.  The  Canon  of  Changes.     Although  Pao  Hsi  first  drew 


26  THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

the  eight  trigrams,  and  Wen  Wang  multiplied  them  into 
sixty-four  hexagrams,  the  text  of  this  Canon  is  virtually 
the  exclusive  work  of  Confucius.  It  is  divided  into  two 
parts,  and  has  sixty-four  books.  The  first  two  books  of 
the  first  part  refer  to  heaven  and  earth  respectively; 
those  of  the  second  part,  to  the  relation  between  hus- 
band and  wife;  the  last  two  books  of  this  Canon  are 
called  "  Success  "  and  "  Failure  ".  Heaven  and  earth  are 
the  basis  of  the  universal  system,  and  husband  and  wife 
that  of  the  social  system.  As  the  world  never  comes  to 
the  stage  of  perfection,  and  everything  must  have  an  end, 
this  Canon  ends  at  the  book  of  Failure.  The  thought  is 
mystical ;  the  words  are  figurative;  the  illustrations  are  math- 
ematical. The  word  "changes"  has  three  distinct  meanings: 
easy,  changeable,  unchangeable;  and  the  principles  of  this 
Canon  have  these  three  qualities.  In  fact,  the  Canon  of 
Changes  is  the  doctrine  of  evolution,  and  we  may  adopt  the 
word  evolution  instead  of  changes. 

6.  The  Spring  and  Autumn.  This  Canon  was  origi- 
nally the  annals  of  Lu_,  but  Confucius  changed  them  into 
the  present  form.  It  covers  the  period  of  two  hundred 
and  forty-two  years  (171  B.  K.-71  A.  K.  or  722-481  B. 
C),  and  records  the  events  during  the  reigns  of  twelve 
dukes.  For  the  preparation  of  this  Canon,  Confucius  sent 
fourteen  pupils  to  get  the  sacred  books  from  one  hundred 
and  twenty  nations.  It  is  an  inductive  work,  written  entirely 
by  Confucius  himself.  This  Canon  is  the  most  important 
of  all  his  works.  It  is  not  historical  in  character;  the  words 
drawn  from  history  are  but  the  figures  by  which  Confucius 
has  illustrated  his  principles.  ''  I  should  like  to  convey 
my  ideas  as  pure  theories,"  said  he,  "  but  it  is  deeper,  truer, 
clearer,  brighter,  to  represent  them  through  the  actions  of 
men."  He  claims  the  rights  of  a  king,  represents  his  king- 
dom under  the  name  of  Lu,  and  gives  numerous  laws  along 


WRITINGS  OF  CONFUCIUS  AND  HIS  DISCIPLES 


27 


with  historical  events.  Censuring  the  emperors,  abasing  the 
princes,  and  attacking  the  great  officials,  he  establishes  his 
kingdom  on  earth  through  the  Spring  and  Autumn.  On 
this  account,  Confucius  said :  "  It  is  only  the  Spring  and 
Autumn  which  will  make  men  know  me,  and  it  is  only  the 
Spring  and  Autumn  which  will  make  men  condemn  me."  ^ 

Of  the  Five  Canons,  the  Canon  of  Changes  and  the 
Spring  and  Autumn  are  the  most  important.  The  Canons 
of  Poetry,  of  History,  and  of  Rites  contain  materials  drawn 
from  the  ancients  and  remodeled  by  him,  but  the  Canon  of 
Changes  and  the  Spring  and  Autumn  are  written  entirely 
in  his  own  words.  The  other  three  are  his  ordinary  teach- 
ings; these  two,  his  most  important  teachings.  The  Canon 
of  Changes  is  a  deductive  work,  beginning  with  abstract 
principles  and  proceeding  to  their  practical  application,  while 
the  Spring  and  Autumn  is  inductive,  coming  to  the  general 
theories  through  the  analysis  of  facts.  ^ 

Both  the  inductive  and  the  deductive  method  are  em- 
ployed by  Confucius.  He  recognizes  the  equal  importance 
of  them,  and  points  out  the  dangers  of  using  either  exclu- 
sively. He  says :  ''  Learning  without  thought  is  labor  lost ; 
thought  without  learning  is  perilous."  '^  The  word  learning 
means  induction,  and  the  word  thought,  deduction.  They 
must  be  combined  and  neither  one  can  get  along  without 
the  other.  He  tells  us  from  his  own  experience  that  the 
single  method  of  deduction  is  useless.  He  says :  ''  I  have 
been  the  whole  day  without  eating,  and  the  whole  night 
without  sleeping — occupied  with  thinking.  It  was  of  no 
use.     The  better  plan  is  to  learn."*     .\gain,  he  speaks  of  his 

1  Classics,  vol.  ii,  pp.  281-2. 

2  Historical  Record,  ch.  cxvii. 
'  Classics,  vol.  i,  p.  150. 

*  Ibid.,  pp.  302-3. 


28  THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

inductive  method  as  follows :  "  There  may  be  those  who 
write  something  without  the  knowledge  of  it.  I  have  no 
such  fault.  Hearing  much,  and  selecting  what  is  good  and 
using  it ;  seeing  much,  and  selecting  what  is  good  and  writ- 
ing it  down:  this  way  of  getting  knowledge  is  second  only 
to  having  knowledge  by  birth."  ^  From  these  two  passages, 
it  seems  that  he  is  more  in  favor  of  induction  than  of  de- 
duction. 

We  must  understand,  however,  that  since  Confucius  was 
not  a  historian,  but  the  founder  of  a  religion,  his  writings 
are  not  of  a  historical  but  of  a  religious  character.  All 
the  data  given  in  his  writings,  although  often  true,  are 
primarily  figurative  illustrations  of  his  own  ideas,  and  he 
did  not  necessarily  regard  them  as  facts.  In  the  Analects 
he  says : 

I  can  describe  the  civilization  of  the  Hsia  dynasty,  but  the 
state  of  Qii  cannot  sufficiently  prove  my  words.  I  can  de- 
scribe the  civilization  of  the  Yin  dynasty,  but  the  state  of  Sung 
cannot  sufficiently  prove  my  words.  It  is  because  of  the  in- 
sufficiency of  their  literature  and  scholars.  If  those  were 
sufficient,  I  could  adduce  them  in  support  of  my  words.^ 

This  passage  indicates  that  Confucius  himself  fails  to  find 
historical  data  on  which  to  base  his  doctrines,  and  that  the 
descriptions  of  the  ancient  civilization  given  by  him  are 
simply  from  his  own  mind.  In  the  "Doctrine  of  the  Mean,"^ 
and  in  the  "  Evolution  of  Civilization,"  *  Confucius  gives 
passages  similar  to  the  above,  so  that  we  are  assured  that 
he  creates  the  ancients  out  of  his  own  mind.     Moreover, 

^  Classics,  vol.  i,  p.  201. 

'  Ibid.,  p.  158. 

'  Ibid.,  p.  424. 

*  Li  Ki,  bk.  vii,  p.  368. 


WRITINGS  OF  CONFUCIUS  AND  HIS  DISCIPLES 


29 


when  Mencius  was  asked  bv  Pei-kung  Yi  about  the  arrange- 
ment of  dignities  and  emoluments  determined  by  the  Chou 
dynasty,  he  replied,  ''  The  particulars  of  that  arrangement 
cannot  be  learned,  for  the  princes,  disliking  them  as  injur- 
ious to  themselves,  have  all  made  away  with  the  records  of 
them."  ^  We  can  see,  therefore,  that  in  Confucius'  time,  not 
only  the  civilization  of  the  Hsia  and  the  Yin  dynasties  had 
no  authentic  history,  but  also  that  of  the  Chou  dynasty  was 
without  complete  records.  How  much  more  doubtful  were 
the  things  beyond  these  three  dynasties  to  which  he  refers? 
Yet  Confucius  describes  many  matters  which  refer  not  only 
to  the  Three  Dynasties,  but  also  to  the  legendary  periods. 
When  we  compare  his  writings  with  those  of  other  schools, 
we  find  no  agreement  among  the  different  writers  as  to  the 
facts,  because  they  all  utilize  the  ancient  kings  as  figures 
to  portray  their  own  theories.  Chuang  Tzij  (a  pupil  of  the 
disciple  of  Confucius,  who,  however,  turned  to  Taoism),  is 
such  a  writer  of  the  extreme  type,  and  Confucius  is  one  of 
the  moderate  type.  Mo  Tzu,  a  young  pupil  of  Confucius, 
and  later  the  founder  of  the  rival  school  of  Moism,  said, 
"  Between  two  philosophers,  their  words  condemn  each 
other,  and  their  actions  oppose  each  other.  Yet  they  both 
say,  *  I  transmit  from  the  ancients  the  principles  of  Yao, 
Shun,  Yu,  T'ang,  Wen,  and  Wu.'  "  '  Han  Fei  Tzu  (died 
319  A.  K.  or  233  B.  C),  the  greatest  philosopher  of  the 
Law  School,  formerly  a  Confucian,  said,  "  Confucius  and 
Mo  Tzu  both  speak  of  Yao  and  Shun,  but  what  they  select 
or  reject  is  different.  Yet  they  both  claim  to  be  the  true 
representatives  of  Yao  and  Shun.  As  Yao  and  Shun  cannot 
be  alive  again,  who  can  be  sent  to  determine  the  truthful- 
ness of  Confucius  and  Mo  Tzu?"*     Han  Fei  Tzu,  living 

Classics,  vol.  ii,  p.  373. 
2  Bk.  XXV.  »  Bk.  1. 


30  THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

near  to  the  age  of  Confucius,  yet  failed  to  assert  whether 
the  things  ascribed  by  Confucius  to  the  ancient  kings  were 
true  or  not;  how  can  we  assert  such  things  to-day?  It  is 
evident  that  Confucius  creates  them  himself. 

The  reason  Confucius  uses  the  names  of  the  ancient  kings 
to  father  his  theories  is  told  by  himself,  when  he  says  to 
Ts'eng  Tzu,  "  I  humble  myself  in  order  to  avoid  danger,  and 
refer  to  the  ancient  kings  in  order  to  borrow  authority."  ^ 
On  the  one  hand,  he  escapes  danger  from  the  princes,  and 
on  the  other,  he  wins  the  confidence  of  the  people.  More- 
over, as  China  had  a  glorious  history  long  before  his  time, 
and  he  was  a  great  scholar,  it  was  natural  for  him  to  utilize 
historical  materials  for  his  own  purpose.  But  at  bottom, 
all  his  writings  are  the  fruh  of  his  own  mind  and  for  his 
own  religious  teachings. 

Some  people  think,  however,  that  Confucius  was  "  a 
transmitter  and  not  an  originator,  believing  in  and  loving 
the  ancients,"  and  quote  this  phrase  from  his  own  words  in 
the  Analects.^  But  these  words  simply  express  the  char- 
acteristic modesty  of  the  Chinese,  a  quality  which  Confucius 
shows  in  extreme  form.  Yet  he  was  not  always  so  modest, 
sometimes  confessing  that  he  was  an  originator.  In  the 
Adjunct  to  the  Spring  and  Autumn,  he  said,  "  A  sage  is 
never  born  to  do  nothing;  he  must  produce  something  in 
order  to  show  the  mind  of  God.  I  am  *the  wooden-tongued 
bell ',  and  make  laws  for  the  world."  In  the  Adjunct  to  the 
Canon  of  Filial  Piety,  he  said,  "  I  am  the  law-making  lord." 
Confucius  was  the  real  creator  of  his  new  religion,  although 
incidentally  transmitting  some  elements  from  the  ancients.^ 

1  Adjunct  to  the  Canon  of  Filial  Piety. 

'  Classics,  vol.  i,  p.  195. 

^  Cf.  Research  on  the  Reformation  of  Confucius,  published  in  2449 
(1898  A.  D.)   by  Kang  Yu-wei. 


WRITINGS  OF  CONFUCIUS  AND  HIS  DISCIPLES 


31 


II.    WRITINGS    OF    THE   DISCIPLES    OF    CONFUCIUS 

The  Five  Canons  do  not  give  all  the  teachings  of  Con- 
fucius. So  if  we  wish  to  learn  his  teachings,  besides  study- 
ing his  own  works,  we  must  study  also  the  writings  of  his 
disciples.  For  they  are  very  closely  related  to  each  other, 
and  both  together  make  up  the  religion  of  Confucianism.  If 
we  neglect  the  writings  of  his  disciples  and  take  up  only 
his  own  writings,  it  means  that  we  omit  a  great  part  of  his 
teachings,  and  that  therefore  we  cannot  understand  him 
so  well,  or  do  him  justice. 

We  shall  now  point  out  the  names  of  the  writings  of  his 
disciples,  calling  them  Records  and  Commentaries,  in  order 
to  distinguish  them  from  the  Canons  of  Confucius. 

I.  Records  and  Commentaries 

1.  The  Analects.  This  is  a  record  of  the  monologues  and 
conversations  of  Confucius  and  his  disciples.  It  was  written 
by  his  disciples,  Chung-kung,  Tzu-yu,  Tzu-hsia,  and  others. 

2.  The  Canon  of  Filial  Piety.  This  may  have  been  written 
by  the  pupils  of  Ts'eng  Tzu,  ^md  it  serves  as  the  gateway  to 
the  Five  Canons. 

3.  The  twelve  *'  Records ''  and  the  "  Commentary  of 
Mourning."  These  Records  are  the  complements  to  the 
twelve  books  of  the  Canon  of  Rites,  which  were  written  by 
the  pupils  of  Confucius.  The  Commentary  explains  the 
mourning  system  prescribed  m  the  Canon  itself,  and  in  the 
Record,  and  was  written  by  Tzu-hsia  alone.  Both  these 
Records  and  the  Commentary  are  now  contained  in  the 
Canon  of  Rites. 

4.  Elder  Tai's  Record  )f  Rites.  It  was  compiled  by  Tai 
Te.  The  number  of  its  original  books  is  disputed.  It  has 
thirty-nine  books  now. 

5.  Younger  Tai's  Record  of  Rites.  It  was  compiled  by 
Tai  Sheng,  second  cousin  of  Tai  Tc.     This  has  forty-nine 


32  THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

books  now^  but  its  original  number  is  also  disputed.     It  is 
now  called  the  Record  of  Rites  (Li  Ki). 

There  was  originally  a  compilation  entitled  The  Records 
of  the  Seventy  Disciples  and  Their  Followers,  which  in- 
cluded all  the  books  written  by  the  disciples  of  Confucius, 
even  the  Analects  and  the  Canon  of  Filial  Piety.  The  num- 
ber of  books  was  two  hundred  and  four.  But  the  scholars 
of  the  Canon  of  Rites  took  many  books  out  of  it,  and 
formed  a  particular  encyclopaedia  on  the  subject* of  rites. 
The  Elder  Tai  and  the  Younger  Tai,  both  great  scholars  of 
the  Rites  during  the  reign  of  Han  Hsiian  Ti  (479-503  A.  K. 
or  73-49  B.  C. ),  compiled  these  two  Records,  and  they  are 
later  called  the  Records  of  Rites. 

6.  The  ''Appendix"  of  the  Canon  of  Changes  was  written 
by  the  disciples  of  Confucius,  and  is  now  contained  in  the 
Canon  of  Changes  just  after  the  sixty-four  books  of  this 
Canon. 

7.  Kung-yang' s  Comme^itary.  In  order  to  understand 
the  principles  of  the  Spring  and  Autumn,  nay,  in  order  to 
understand  the  principles  of  Confucius  at  all,  it  is  necessary 
to  study  Kung-yang's  Commentary.  Fearing  the  injury 
which  the  princes  would  do  to  his  writings,  Confucius 
omitted  all  detailed  explanation  in  the  Spring  and  Autumn, 
and  such  explanation  is  given  by  this  Commentary,  which 
records  the  oral  teachings  of  Confucius.  In  fact,  it  is  the 
keystone  of  Confucianism.  It  and  the  Canon  are  now  con- 
tained in  a  single  book.^ 

8.  Ku-liang's  Commentary  is  also  a  commentary  on  the 
Spring  and  Autumn,  and  a  record  of  the  oral  teachings  of 
Confucius.  This  Commentary  is  inferior  to  that  of  Kung- 
yang.  It  also  is  compiled  with  the  Canon  in  a  single  book. 
These  two  Commentaries  were  written  by  the  disciples  of 
Tzu-hsia. 

1  The  Annotation  of  Kung-Yang  given  by  Ho  Hsiu  (680-733,  or  129- 
182  A.  D.)  is  very  valuable  and  reliable. 


WRITINGS  OF  CONFUCIUS  AND  HIS  DISCIPLES 


33 


9.  The  Seven  Adjuncts.  They  were  seven  separate  books, 
each  of  them  supplementing  respectively  the  Six  Canons 
and  the  Canon  of  Filial  Piety.  The  Canons  are  the  warp, 
the  Adjuncts  the  woof.  Some  scholars  say  that  they  were 
written  by  Confucius  himself."  Since  they  appeared  in  the 
Former  Han  dynasty,  and  their  interpretations  agree  with 
the  Canons  and  the  Modern  Literature  School,  they  are  very 
valuable,  because  they  give  many  oral  teachings  of  Con- 
fucius. We  are  sure  that  they  were  written  by  his  disciples, 
although  many  statements  were  added  to  them  by  the  Con- 
fucians of  the  Former  Han  dynasty.  In  character,  they 
were  religious,  mystical  and  prophetical.  Unfortunately, 
they  were  prohibited  by  several  emperors,  and  burned  en- 
tirely by  Sui  Yang  Ti  (about  11 56,  or  605  A.  D.).  To-day, 
there  is  only  a  collection  of  their  fragments. 

2.  Independent  Works 

There  is  another  kind  of  writing,  which  is  not  the  record 
of  the  words  of  Confucius,  nor  the  commentary  on  his 
works.  Such  a  kind  is  called  tsii  philosophy.  It  is  a  name 
given  to  the  works  either  of  the  founders  of  different 
schools,  or  of  the  most  prominent  followers  of  any  school. 
There  are  some  original  and  independent  thoughts  in  such 
writings.  Among  the  Confucians,  the  most  important  works 
of  this  kind  are  those  of  Mencius  and  Hsun  Tzu. 

1.  Ming  Tzii  is  the  work  of  Mencius  himself,  and  has 
seven  books. 

2.  Hsnn  Tzii  is  the  work  of  Hsun  Tzu  (218-339,  or  334- 
213  B.  C. ),  and  has  thirty-two  books. 

Although  these  two  books  are  the  independent  works  of 
the  authors,  they  are  exponents  of  the  principles  of  Con- 
fucius.    Therefore,  they  are  not  the  exclusive  products  of 

'  History  of  Sui,  ch.  xxxii. 


34         THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

Alencius  and  Hsun  Tzu,  and  form  a  part  of  the  religion  of 
Confucius. 

III.    CONCLUSION 

Passing  through  the  Ch^in  dynasty  and  the  Former  Han 
dynasty,  to  the  time  of  Liu  Hsin  (died  574,  or  2^  A.  D.), 
all  the  Confucian  literature  remained  the  same  as  the  orig- 
inal  works  of  Confucius  and  his  disciples.     Unfortunately, 
when  the  political  usurper,  Wang  Mang,  came  to  power 
(551-574,  or  I  B.  C.-2^  A.  D.),  there  was  also  a  religious 
usurper  named  Liu  Hsin.    At  that  time,  books  were  scarce. 
Liu   Hsin   in   545    (7   B.    C.)    succeeded   his   father,   Lia 
Hsiang,^  as  the  reviewer  in  the  imperial  library.     Both  he 
and  his   father  were  great  scholars;  but  he,   under  such 
favorable  conditions,  made  many  corruptions  in  the  whole 
Confucian  Bible  in  order  to  satisfy  his  literary  purpose  and 
the  political  purpose  of  Wang  Mang.    In  560  (9  A.  D.)  he 
was  made  by   Wang   Mang  the  National   Teacher.      He 
changed    the    order   of    the    Six    Canons—the    Canon    of 
Changes  first,  the  History  second,   the  Poetry  third,  etc. 
Since  he  had  no  way  to  destroy  the  Bible,  he  changed  the 
original  text  somewhat  and  put  some  spurious  words,  state- 
ments, chapters,  and  books  into  it.     Then  he  wrote  or  com- 
piled  many  books   for  the  interpretation   of  his  spurious 
Bible.     He  found  an  ingenious  pretext  to  help  him.     There 
had  been  a  burning  of  literature  by  the  Ch'in  Dynasty  (339 
A.  K.  or  213  B.  C),  but  the  existence  of  the  Confucian 
literature  was  not  affected.     Yet  Liu  Hsin  pretended  that 
the  existing  Confucian  literature  was  not  complete  on  ac- 
count of  that  fire,  and  that  his  spurious  books  were  the  only 

^  Liu  Hsiang  (473-544,  or  79  B.  C.  to  8  A.  D.)  became  the  reviewer  in 
the  imperial  library  in  526  (26  B.  C),  and  his  son,  Liu  Hsin,  was  his 
assistant.  He  was  the  author  of  the  Park  of  Narratives,  the  New 
Narration,  the  Biography  of  Noteworthy  Women,  etc.  He  was  one 
of  the  greatest  authorities  in  the  Modem  Literature. 


WRITINGS  OF  CONFUCIUS  AND  HIS  DISCIPLES       35 

old  texts  rediscovered,  in  the  period  between  397  and  423 
(155-129  B.  C),  which  had  escaped  this  burning.  Hence, 
he  called  his  spurious  books  the  Ancient  Literature. 

Liu  Hsin's  chief  works  are  these:  i.  He  compiled  the 
Official  System  of  Chou  under  the  feigned  name  of  the 
Duke  of  Chou,  making  the  Duke  a  rival  to  Confucius.  2. 
He  wrote  the  spurious  Tso's  Commentary,  formed  from  the 
greater  part  of  Tso-ch'iu  Ming's  Narratives  of  Nations,  in 
order  to  interpret  the  Spring  and  Autumn.  This  was  a 
great  calamity.^ 

Opposing  this  spurious  Ancient  Literature  are  the  true 
Canons  interpreted  by  the  great  authorities  of  the  Former 
Han  dynasty.  These  interpretations  are  called  the  Modern 
Literature.  Of  course,  it  is  very  difficult  to  distinguish  the 
true  Canons  from  the  spurious  Canons,  especially  as  many 
of  the  books  of  the  Modern  Literature  have  been  lost.^    But, 

'  Although  the  Official  System  of  Chou  and  Tso's  Commentary  are 
the  compilations  of  Liu  Hsin,  they  give  much  information  about  the 
old  customs,  institutions  and  facts,  because  the  materials  of  the  Official 
System  of  Chou  are  drawn  from  the  old  books,  and  the  Narratives  of 
Nations  is  a  history.  Therefore,  for  the  sake  of  mere  facts,  we  can- 
not help  making  use  of  these  two  books. 

2  Cheng  Hsiian  (678-751,  or  127-200  A.  D.)  was  the  chief  figure 
among  all  the  Confucians  of  the  Han  dynasty.  He  studied  both  the 
Modern  and  the  Ancient  Literature,  but  his  works  were  based  on  the 
latter  more  than  on  the  former.  He  was  a  very  good  man,  and  a  very 
good  scholar,  though  he  mixed  up  the  Modern  and  the  Ancient  Litera- 
ture. He  commented  on  nearly  all  the  canonical  books,  taking  up  the 
interpretations  from  both  the  Modern  and  the  Ancient  Literature,  but 
he  used  the  text  of  the  Ancient  Literature  for  his  annotation.  There- 
fore, when  his  annotations  were  generally  accepted,  nearly  all  the 
Modern  Literature  was  lost,  but  the  Ancient  Literature  remains.  From 
the  time  that  Liu  Hsin  made  the  Ancient  Literature,  there  had  always 
been  a  bitter  rivalry  between  the  two  schools,  who  had  never  come  to 
any  compromise.  H  such  a  condition  had  lasted  forever,  the  Modern 
Literature  would  never  have  been  lost.  But,  since  Cheng  Hsiian  mi.Kcd 
up  the  two,  a  great  confusion  had  been  interwoven  through  them,  and 
it   is   very   difficult   to   distinguish   them.     Through    his    influence,   the 


36         THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

since  some  still  remain,  and  since  there  are  many  collections 
of  the  fragments  of  the  Modern  Literature,  a  most  careful 
study  has  aeiermined  what  the  true  Canons  are.  While 
every  word  cannot  be  made  out,  still  the  Five  Canons  are  at 
least  ninety  per  cent  authentic. 

Both  these  two  classes  of  books — the  Canons  of  Con- 
fucius, and  the  Records,  Commentaries  and  the  independent 
works  of  his  disciples — are  sources  from  which  we  have 
learned  the  principles  of  Confucius.  In  addition  to  these 
authorities,  we  use  many  interpretations  suggested  by  the 
Confucians  of  different  ages,  from  the  Han  dynasty  to  the 
present  day,  and  information  supplied  by  different  philoso- 
phers from  the  Chou  dynasty  to  the  Former  Han  dynasty. 
But  these  need  not  be  mentioned  here.  The  details  of  dis- 
tinguishing the  Modern  Literature  from  the  Ancient  Litera- 
ture are  very  complex,  and  we  have  not  space  to  discuss 
them  here.^  We  have  been  very  careful  to  base  this  study 
on  the  works  of  the  School  of  Modern  Literature,  to  leave 
out  entirely  spurious  passages  and  books,  and  to  present  the 
principles  of  Confucius  with  all  possible  accuracy. 

It  should  be  noted  that  the  influence  of  the  writings  cited 
above  is  exceedingly  great.  Nearly  all  Chinese  institutions 
are  based  upon  them.  This  appears  from  a  consideration 
of  the  great  events  in  Chinese  history  in  their  chronological 
order.     The  abolition  of  the  feudal  system,  the  abolition  of 

forged  books  of  Liu  Hsin  were  diffused  and  accepted.  The  people 
read  him,  and  through  him  believed  Liu  Hsin.  Therefore  he  was  un- 
consciously a  strong  supporter  of  Liu  Hsin,  and  a  betrayer  of  Con- 
fucius. Despite  this,  he  was  a  great  authority,  and  from  him  we  learn 
some  of  the  oral  teachings  of  Confucius.  His  chief  works  which  re- 
main are  the  Annotation  of  the  Canon  of  Peotry,  the  Annotation  of 
the  Canon  of  Rites,  the  Annotation  of  the  Record  of  Rites,  and  the 
Annotation  of  the  Official  System  of  Chou. 

^  The  best  book  for  it  is  the  Research  on  the  False  Bible  of  the  School 
of  Hsin,  published  in  2442  (1891  A.  D.)  by  Kang  Yu-wei. 


WRITINGS  OF  CONFUCIUS  AND  HIS  DISCIPLES 


37 


hereditary  officials,  the  election  system,  the  educational  sys- 
tem, the  adoption  of  the  calendar  of  the  Hsia  dynasty,  the 
three  years'  mourning,  the  distribution  of  the  public  land — 
all  these  were  the  products  of  Confucius  himself.  The 
theories  of  these  writings  are  called  by  the  Chinese  "  canon- 
ical principles,"  and  they  are  of  value  not  only  for  study, 
but  even  more  in  their  application  to  practical  affairs. 
Therefore,  even  a  single  word  or  a  single  phrase  may  be  of 
great  importance  in  the  solution  of  problems  of  the  day. 
For  example,  the  Chinese  want  constitutional  government, 
but  they  refer  to  Confucius  for  the  support  of  their  demand. 
Confucius  is  the  chief  authority,  and  it  is  the  habit  of  the 
Chinese  to  seek  from  these  writings  sanction  or  guidance 
in  the  determination  of  important  questions.  It  is  neces- 
sary to  bear  these  facts  in  mind  in  order  to  understand  the 
significance  of  the  quotations  from  these  writings,  no  matter 
how  short  or  how  figurative  they  may  be. 

It  should  be  noted  also  that  Confucius  was  not  primarily 
an  economist.  He  was  a  general  philosopher,  interested  in 
many  things.  Throughout  all  his  writings,  there  is  scarcely 
a  single  book  treating  exclusively  of  economic  subjects.  But 
there  are  many  passages  and  chapters  referring  to  economic 
life  and  giving  economic  principles.  When  we  combine 
these  two  classes  of  writings,  we  find  that  economic  prin- 
ciples are  quite  abundant.  But  the  difficulty  is  that  they  are 
scattered  through  all  the  writings,  and  in  such  a  chaotic  way 
that  they  are  not  easily  collected  and  arranged.  Moreover, 
when  there  is  an  economic  principle,  it  is  generally  mixed 
up  with  something  else.  Therefore,  in  bringing  together 
the  economic  teachings  of  Confucius  from  these  writings, 
we  shall  arrange  them  in  the  order  of  modern  economists. 
That  is  to  say,  that  while  materials  are  old,  the  arrangement 
is  quite  new. 

For  the  interpretation  of  these  writings,  we  shall,  so  far 


38         THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

as  possible,  pick  out  the  best  from  among  the  many  old 
scholars.  But,  if  we  are  not  satisfied  with  the  old  interpre- 
tation, we  are  obliged  to  make  a  new  one  according  to  the 
original  texts.  Therefore,  while  the  author  does  not  pretend 
to  any  originality,  he  does  claim  to  have  discovered  some 
new  truths  contained  in  the  old  texts. 


CHAPTER  IV 

Historical  Movements  of  Confucianism 

Confucianism  is  the  name  of  the  new  religion  founded 
by  Confucius.  The  word  Confucianism  in  Chinese  is  called 
Ju,  which  may  be  applied  both  to  the  religion  of  Confucius 
and  to  his  followers.  Since  Confucianism  has  been  made 
the  state  religion,  and  practically  every  Chinese  has  been  a 
Confucian,  the  word  Ju  is  used  narrowly  as  equivalent  to 
scholar  or  litterateur/  but  in  its  original  sense  it  signifies 
simply  those  who  believe  the  teachings  of  Confucius. 
Among  the  whole  body  of  Ju,  there  are  still  many  different 
classes.  Confucius  said  to  Tzu-hsia :  "  You  shall  be  a  great 
man  of  Jii,  and  shall  not  be  a  small  man  of  Ju."  ^  Hsun 
Tzu  ^  classifies  the  people  as  these: — the  common  people,  the 
common  Ju,  the  regular  ///,  and  the  great  Ju.  In  the  time 
of  Hsun  Tzu,  Confucianism  did  not  yet  rule  the  whole 
Chinese  people,  so  that  the  heathen  of  Confucianism  were 
called  common  people.  But  even  within  the  limit  of  Ju, 
there  were  still  varying  degrees.  For  the  governing  of  his 
people,  Confucius  sets  forth  the  '*  Conducts  of  Ju  "  *  as  the 
Confucian  creed. 

Confucianism  is  the  new  religion  of  China,  but  what  was 

'  James  Leggc  says:  "  We  must  bear  in  mind  that  the  literati  in  China 
do  in  reality  occupy  the  place  of  priests  and  ministers  in  Christian  king- 
doms. Sovereign  and  people  have  to  seek  the  law  at  their  lips." 
Chinese  Classics,  vol.  ii,  p.  53. 

''Classics,  vol.  i,  p.  189.  'Bk.  viii. 

*  Li  k'i,  bk.  xxxviii,  pp.  402-410. 

29 


40 


THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 


her  old  religion?  Her  old  religion  was  polytheism,  and 
had  no  special  name.  According  to  the  OMcial  System  of 
Chou  ^  there  were  four  classes  of  spirits — the  spirits  of 
heaven,  of  earth,  of  the  dead,  and  of  all  material  things — 
but  above  all  there  was  a  Supreme  God.  For  the  communi- 
cation between  the  spirits  and  men,  rose  the  priesthood, 
which  was  a  body  of  scholars.  They  divided  their  pro- 
fession into  six  departments: — (i)  astrology,  (2)  the  alma- 
nac, (3)  the  five  elements  (water,  fire,  wood,  metal  and 
earth),  (4)  milfoil  and  tortoise,  (5)  miscellaneous  foretell- 
ing (dream-interpreting,  devil-driving,  prayer,  etc.),  (6) 
physical  laws  (the  features  of  geography,  of  cities,  of  build- 
ing, of  human  beings,  of  animals,  of  things,  etc.).  The 
History  of  Han  ^  puts  these  six  professions  into  the  class 
of  "  magic  ",  but  they  were  really  a  mixture  of  magic  and 
science  which  is  unintelligible  and  forgotten  to-day. 

Under  this  old  religion,  the  whole  empire  was  ruled  by 
superstition.  Confucius  was  a  great  religious  reformer  who 
swept  away  the  old  and  established  the  new.  He  did  not 
like  to  talk  about  extraordinary  things  and  spiritual  beings.^ 
"  To  give  one's  self  earnestly,"  said  he,  "  to  the  duties  due 
to  men,  and,  while  respecting  spiritual  beings,  to  keep  aloof 
from  them,  may  be  called  wisdom."  *  In  Confucianism, 
there  is  no  prayer.  Confucius  being  very  sick,  Tzu-lu,  his 
pupil,  asked  leave  to  pray  for  him.  The  master  said: 
"  My  praying  has  been  for  a  long  time."  ^  In  other  words, 
he  had  no  need  of  prayer.  The  Canon  of  Poetry  speaks  of 
"  seeking  for  much  happiness  by  yourself,"  ®  which  Mencius 
explains  as  meaning,  "  Calamity  and  happiness  are  in  all 

'  Chs.  xviii,  xxvii.  'Ch.  xxx. 

^Classics,  vol.  i,  p.  201. 

*/did.,  p.  191.  ^ Ibid.,  p.  206. 

''Ibid.,  vol.  iv,  pt.  ii,  p.  431. 


HISTORICAL  MOVEMENTS  OF  CONFUCIANISM 


41 


cases  of  man's  own  seeking-."  ^  Confucius  frees  all  mankind 
from  supernatural  power,  and  lays  stress  on  the  independent 
cultivation  of  one's  own  personality.  Any  individual,  who 
has  reached  the  highest  standard  of  the  means  and  harmony, 
can  fix  the  Heaven  and  Earth  and  can  nourish  all  things.^ 
In  fact,  such  a  religion  not  only  was  new  to  China  in  an- 
cient times,  but  is  also  new  in  the  Western  World  to-day, 
where  it  is  only  now  appearing  in  such  forms  as  the  Ethical 
Culture  Society,  though  we  find  its  essentials  also  in  the 
teachings  of  Aristotle  and  of  the  stoics. 

Confucianism  is  a  religion  of  the  highest  development, 
so  we  must  not  think  Confucius  unreligious.  In  the  Canon 
of  Changes,  Confucius  said,  "  The  sages  took  the  spiritual 
way  to  establish  religion,  and  hence  the  world  submitted 
to  them."  ^  ''  To  combine  ghost  and  spirit,"  said  Confucius, 
"  is  the  good  form  of  religion.  .  .  .  The  sages  framed  dis- 
tinctly the  names  of  ghost  and  spirit,  to  constitute  a  pattern 
for  the  black-haired  race;  and  all  the  multitudes  were  filled 
with  awe  and  the  myriads  of  the  people  constrained  to  sub- 
mission." *  All  this  shows  that  Confucius  recognized  the 
usefulness  of  the  old  religion,  and  so  did  not  destroy  it  en- 
tirely. In  his  writings,  we  still  find  some  of  the  old  ele- 
ments. Because  he  knew  that  the  world  could  not  attain  the 
final  stage  at  once,  he  did  not  carry  his  ideal  too  far,  and 
this  was  one  reason  why  Confucianism  was  accepted  as  the 
state  religion  of  China.  From  the  beginning  of  Chinese  his- 
tory, the  old  religion  had  been  combined  with  politics,  and 
the  sage  rulers  had  been  the  heads  of  both  government  and 
church:  but  ever  since  the  new  religion  arose.  Confucius, 

'  Classics,  vol.  ii.  p.  198.  ^ Ibid.,  vol.  i,  p.  385. 

^  Yi  Kin^,  p.  230.  The  two  words  "spiritual  way"  in  Chinese  are 
pronounced  sh^n  tao.  Hence,  the  Japanese  call  their  religion  Shen- 
taoism. 

*  Li  A7,  bk.  xxi,  pp.  220-221. 


42  THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

coming  from  an  ordinary  family,  has  been  ''The  Throneless 
King,"  and  religion  has  been  separated  from  politics — the 
great  sage  was  not  necessarily  to  have  a  crown. 

We  must  not  think,  however,  that  Confucianism  was  to 
become  a  state  religion  without  a  struggle  for  supremacy. 
In  the  periods  of  Spring  and  Autumn  (171  B.  K.-71  A.  K. 
or  722-481  B.  C)  and  of  Warring  States  (149-331  A.  K. 
or  403-221  B.  C),  great  philosophers  with  creative  genius 
were  numerous,  and  each  fought  for  his  own  doctrines. 
According  to  the  History  of  Hanj^  there  were  nine  sects: 
(i)  Confucianism,  (2)  Taoism,  (3)  Spiritualism  (the  old 
religion),  (4)  The  School  of  Law,  (5)  The  School  of 
Logic,  (6)  Moism,  (7)  The  School  of  Diplomacy,  (8)  The 
School  of  Generalization,  (9)  The  School  of  Agriculture. 
The  most  powerful  of  these  were  Confucianism,  Taoism 
and  Moism.  Yang  Chu  was  a  great  disciple  of  Lao  Tzu, 
and  he  made  Taoism  a  religion  of  extreme  egoism,  while 
Mo  Tzu  established  his  own  school,  which  was  one  of  ex- 
treme altruism.  Yang  was  like  Epicurus,  and  Mo  was  like 
Jesus.  During  the  time  of  Mencius,  the  doctrines  of  Yang 
and  Mo  ruled  the  whole  empire,  and  endangered  the  exist- 
ence of  Confucianism.^  A  little  later,  however,  as  society 
would  not  accept  the  doctrine  of  Taoism,  now  made  ex- 
tremely egoistic  by  Yang  Chu,  the  only  rivals  were  Con- 
fucianism and  Moism.  At  the  end  of  the  Chou  dynasty  and 
the  beginning  of  the  Han  dynasty,  the  names  of  Confucius 
and  Mo  Ti  had  equal  prominence,  and  a  life  and  death 
struggle  between  the  two  coming  religions  was  now  going 
on. 

Let  us  consider  the  fate  of  Confucianism.  After  the 
death  of  Confucius,  his  pupils  scattered  over  the  whole  em- 
pire.    Some  became  teachers  and  ministers  in  the  govern- 

^Ch.  XXX.  ^Classics,  vol.  ii,  pp.^282-3. 


HISTORICAL  MOVEMENTS  OF  CONFUCIANISM        43 

ments  of  different  states,  some  private  teachers.  In  145 
A.  K.  (407  B.  C),  the  Marquis  Wen  of  Wei  accepted  the 
Confucian  Bible  from  Tzu-hsia.  This  was  the  first  time 
that  Confucianism  was  recognized  as  a  state  religion. 
About  231  A.  K.  (321  B.  C),  the  Marquis  Wen  of  Teng 
put  Confucianism  into  practice  on  the  advice  of  Mencius.^ 
During  this  same  period,  we  find  that  five  states — Lu,  Ch'i, 
Wei,  Sung,  and  Ch'in — had  established  the  Board  of  Great 
Scholars,  {Po  Shih),  the  government  professorship  of  Con- 
fucianism. Confucianism  attained  this  dominance  largely 
because  of  the  achievements  of  its  disciples.  According 
to  Hayi  Fei  Tzu,^  Confucianism  was  at  that  time  divided 
up  into  eight  branches.  But  the  greatest  Confucians 
fighting  against  all  other  schools  were  Mencius  and  Hsun 
Tzu.  When  the  First  Emperor  of  the  Ch'in  dynasty  con- 
solidated the  whole  empire,  and  Li  Ssu,  pupil  of  Hsun  Tzu, 
became  the  prime  minister,  Confucianism  was  made  in 
339  (213  B.  C. )  a  universal  religion  throughout  the  Chinese 
world,  although  this  tyrannical  emperor  did  not  give  religious 
freedom  to  the  people,  but  confined  authority  of  interpreta- 
tion to  the  government.^  The  life  of  the  Ch'in  dynasty, 
however,  was  short,  and  the  influence  of  the  different  schools 
was  still  felt  during  the  beginning  of  the  Han  dynasty.  It 
was  not  until  412  (140  B.  C. )  that  Han  Wu  Ti  accepted 
the  proposal  of  Tung  Chung-shu,  the  greatest  Confucian  of 
the  Han  dynasty,  to  abolish  all  other  religions  and  to  es- 
tablish Confucianism  as  the  only  one.  Then  all  the  other 
schools,  including  Moism,  died  out,  and  the  supremacy  of 
Confucianism  was  complete. 

During  the  Han  dynasty  (346-771,  or  206  B.  C.-220  A. 
D.),  the  influence  of  Confucianism  was  so  great  that  its 

^Classics,  vol.  ii,  pp.  235-247.  »Bk.  1. 

^  Cf.  Classics,  vol.  i.  pp.  7-9. 


44 


THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 


Bible  served  not  only  as  a  religious  book,  but  also  as  a  legal 
code.  The  whole  Confucian  school  in  this  dynasty  may  be 
styled  the  canonistic  school.  During  the  Latter  Han  dy- 
nasty (576-771,  or  25-220  A.  D.)  especially,  the  moral  in- 
fluence produced  by  Confucianism  was  the  best  in  Chinese 
history.  Personal  honor  and  personal  liberty  were  the  first 
considerations;  and,  during  the  decay  of  this  dynasty,  the 
students  fighting  against  the  bad  government  sacrificed 
even  their  lives.  The  moral  standard  of  society  as  a  whole 
was  very  high.  In  fact,  the  Han  dynasty,  although  not 
following  the  best  principles  of  Confucius,  proved  the  appli- 
cability of  Confucianism  to  practical  as  well  as  theoretical 
problems. 

After  the  Han  dynasty,  Confucianism  fell  into  a  period 
of  decline.  Tsao  Tsao,  the  founder  of  the  Wei  dynasty,  in 
761  (210  A.  D.)  openly  decreed  official  employment  of  bad 
men,  and  destroyed  the  moral  influence  that  Confucianism 
had  exerted.  During  the  Wei  and  the  Tsin  dynasties  (771- 
867,  or  220-316  A.  D.),  Taoism  was  powerful;  and  during 
the  Southern  and  the  Northern  dynasties,  and  the  Sui  and 
the  Tang  dynasties  (868-1458,  or  317-907  A.  D.),  Buddhism 
prevailed.  Confucianism,  although  remaining  nominally 
the  state  religion,  had  lost  its  supremacy.  Nevertheless,  the 
governments,  especially  those  of  the  Northern  Wei,  the 
Northern  Chou  and  the  Tang  dynasties,  did  apply  some 
Confucian  prmciples  to  political  and  economic  problems,  so 
that  the  people  still  enjoyed  some  of  its  benefits.  There  was 
only  one  scholar,  Han  Yii  (1319-1375,  or  768-824  A.  D.), 
who  fought  for  Confucianism,  and  against  Taoism  and 
Buddhism.  Han  Yii,  not  a  deep  philosopher,  but  the  great- 
est writer  since  the  Han  dynasty,  gave  a  death-blow  to 
Taoism  and  Buddhism  by  attacking  them  from  the  economic 
standpoint.  But  the  popular  study  of  this  period  was  liter- 
ature in  the  narrow  sense,  and  the  Confucian  philosophy 


HISTORICAL  MOVEMENTS  OF  CONFUCIANISM 


45 


was  the  study  of  but  few.  Then  came  the  age  of  the  Five 
Dynasties  (1458-1511,  or  907-960  A.  D.)  which,  for  Con- 
fucianism, was  worst  of  all. 

But  such  a  decline  had  to  come  to  an  end,  and  during  the 
Sung  dynasty  there  were  many  great  Confucians.  The 
greatest  of  these  was  Chu  Hsi  (1681-1751,  or  11 30- 1200 
A.  D.),  who  was  the  Martin  Luther  of  Confucianism  and 
whose  influence  is  still  strong  at  the  present  time.  He,  how- 
ever, was  a  one-sided  reformer  who  emphasized  the  ethical 
teachings  of  Confucius,  and  omitted  his  religious  views; 
laid  stress  on  individual  character  and  neglected  social 
welfare.  In  this  dynasty,  there  was  a  great  statesman  named 
Wang  An-shih  (i  572-1637,  or  1021-1086  A.  D.),  who  tried 
to  change  the  whole  of  society  by  economic  reforms.  There 
was  also  a  school  called  Yungchia  (about  17 14-1775,  or 
1 163-1224  A.  D.)",  that  advocated  material  welfare  as  well 
as  moral  cultivation.  But  both  failed  to  overcome  the  gen- 
eral influence  of  public  opinion,  and  the  scholars  usually 
paid  much  attention  to  philosophical  controversies  and  for- 
got practical  problems.  Passing  through  the  Yiian  and  the 
Ming  dynasties,  the  learning  was  not  different  from  that  of 
the  Sung  dynasty,  although  in  the  Ming  dynasty  there  was 
Wang  Shou-jen  (2023-2079,  or  1472-1528  A.  D.)  who  was 
rival  to  Chu  Hsi.  For  this  period  (1511-2194,  or  960-1643 
A.  D.)  the  whole  Confucian  school  may  be  styled  the  philo- 
sophical school. 

In  the  present  dynasty,  beginning  in  2195  (1644  A.  D.), 
Confucianism  has  been  in  the  period  of  renaissance.  There 
were  three  great  Confucians  at  the  beginning  of  this  dy- 
nasty: Ku  Yen-wu  (2163-2232,  or  1612-1681  A.  D.). 
Huang  Tsung-hsi  (2160-2246,  or  1609- 1695  ^^-  D.),  and 
Wang  Fu-chih  (2178-2230,  or  1627- 1679  -^-  D.).  They 
did  not  belong  to  any  particular  school,  but  were  great  in 
many  lines.     Then  came  the  school  of  the  canonists.     First 


46         THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

(about  22Sy-2^'/i,  or  1736-1820  A.  D.),  they  turned  from 
the  learning  of  all  the  mediaeval  and  modern  dynasties  to  the 
school  of  Ancient  Literature  of  the  Latter  Han  dynasty. 
Second  (about  2372-2425,  or  1821-1874  A.  D.),  they  went 
back  to  the  school  of  Modern  Literature  of  the  Former  Han 
dynasty,  and  new  thoughts  sprang  up.  Kung  Tsi-chin 
(born  in  2343,  or  1792  A.  D.)  and  Wei  Yiian  (died  in 
2407,  or  1856  A.  D.)  were  the  representatives  of  this  move- 
ment. In  the  present  day,  the  greatest  exponent  of  Con- 
fucius is  Kang  Yu-wei,  the  personal  advisor  of  Te  Tsung 
in  the  political  reforms  of  2449  (1898  A.  D.). 

We  may  roughly  sum  up  the  historical  movements  of 
Confucianism  under  six  heads :  ( i )  the  school  of  the  doc- 
trine of  Great  Similarity,  emphasizing  liberty,  handed  down 
from  Tzu-yu,  Tzu-ssu  to  Mencius;  (2)  the  school  of  the 
doctrine  of  Small  Tranquillity,  emphasizing  government, 
handed  down  from  Chung-kung  to  Hsun  Tzu.  Li  Ssu 
applied  it  to  the  government  of  the  Ch'in  dynasty  (331,  or 
221  B.  C),  and  it  has  lasted  to  the  present  day;  (3)  the 
theological  school,  drawn  from  the  whole  Bible,  and  espec- 
ially from  the  "  Great  Model  "  of  the  Canon  of  History^  the 
Canon  of  Changes,  and  the  Spring  and  Autumn.  Tung 
Chung-shu  and  Liu  Hsiang  were  conspicuous  representa- 
tives, but  this  school  was  practically  ended  after  the  Han 
dynasty;  (4)  the  ethical  school,  the  chief  element  of  Con- 
fucianism, and  highly  developed  in  the  Sung  and  the  Ming 
dynasties;  (5)  the  historical  school,  based  on  the  Canon  of 
History  and  the  Spring  and  Autumn.  Ssu-ma  Chien  and 
other  great  historians  were  the  representatives;  (6)  the 
school  of  literary  research  and  scientific  study,  set  forth 
by  Confucius,  and  popularly,  but  narrowly,  applied  in  the 
present  dynasty. 

So  far  as  we  can  see,  we  have  not  yet  come  to  the  best 
principles  of   Confucius.      There  have  been  many  causes 


HISTORICAL  MOVEMENTS  OF  CONFUCIANISM        47 

for  this,  but  the  influence  of  the  government  on  religion 
has  been  the  most  important  one.  With  a  few  exceptions, 
the  mind  of  the  great  mass  of  students  has  been  controlled 
by  the  direction  of  the  government  and  this  has  greatly 
hampered  the  natural  development  of  Confucianism.  As 
soon  as  the  Chinese  shall  have  established  a  constitutional 
government,  and  secured  perfect  freedom  of  thought,  Con- 
fucianism must  enter  on  a  new  life.  Then  we  may  hope  to 
have  the  stage  of  Great  Similarity  for  the  whole  world. 


BOOK  II     RELATION  OF  ECONOMICS  TO 
OTHER  SCIENCES 


CHAPTER  V 

Economics  and  Other  Sciences  in  General 
I.  definition  of  economics 

The  equivalent  of  the  English  term  *'  economics  "  in 
Chinese  is  "  administering  wealth."  Such  a  term  explains 
itself,  and  calls  for  no  definition.  Let  us,  however,  trace 
the  origin  of  the  term.  It  occurs  first  in  the  ''  Appendix  "  of 
the  Canon  of  Changes  as  follows :  "That  which  enables  men 
to  live  collectively,  is  wealth.  Administering  wealth,  formu- 
lating rules,  and  prohibiting  the  people  from  doing  wrong — 
this  is  called  justice."  ^  Since  the  "  Appendix "  was 
written,  the  Chinese  have  usually  used  the  term  *'  adminis- 
tering wealth  "  for  the  art  of  political  economy,  and  also 
for  the  science  of  economics.  But  the  modern  Japanese 
has  adopted  another  Chinese  term,  ching  chi,  for  the  word 
economics;  and  Herbert  A.  Giles  has  put  this  term,  ching 
chi,  in  his  Chinese-English  Dictionary  for  *'  political  econ- 
omy ".  The  term  ching  chi,  however,  has  a  very  broad 
meaning,  and  is  not  a  good  equivalent  for  the  word  eco- 
nomics. It  generally  means  statesmanship,  and  covers  the 
whole  field  of  governmental  action.  It  thus  belongs  to 
politics  rather  than  to  economics.     It  will  be  well,  there- 

^Yi  King,'^.  381. 
48 


ECONOMICS  AND  OTHER  SCIENCES 


49 


fore,  to  keep  the  old  term  '*  administering  wealth  "  as  the 
equivalent  of  economics,  since  it  is  much  more  accurate  and 
comprehensive  than  the  term  ching  chi. 

As  we  have  taken  the  scientific  term  from  the  Confucian 
text,  let  us  also  adopt  its  definition.  The  term  *'  administer- 
ing wealth  "  covers  the  whole  field  of  economics.  *'  Formu- 
lating rules "  and  "  prohibiting  the  people  from  doing* 
wrong  "  refer  respectively  to  the  ethical  and  political  life. 
All  three  of  these  aspects  of  life  should  be  directed  by  the 
principle  of  justice,  and  their  relations  will  be  stated  later. 
But  we  must  remember  that  the  object  of  "  administering 
wealth  "  is  man.  Our  reason  for  administering  wealth  is 
simply  that  men  are  living  collectively  and  need  wealth  to 
support  them.  Man  is  our  end,  and  wealth  our  means. 
From  this  we  get  as  a  definition:  Economics  is  the  science 
administering  wealth  according  to  the  principle  of  justice, 
for  the  sake  of  men  who  live  collectively. 

II.    GENERAL  RELATION   TO   OTHER  SCIENCES 

From  the  above-quoted  passage  from  the  "  Appendix  "  of 
the  Canon  of  Changes,  we  can  understand  not  only  the 
meaning  of  economics,  but  also  its  relation  to  other  sci- 
ences. Since  the  chief  object  of  **  administering  wealth  "  is 
man,  and  man  living  collectively,  when  we  administer 
wealth,  we  must  deal  with  the  whole  body  of  men.  Thus 
economics  is  very  close  to  sociology.  All  the  social  sci- 
ences relate  to  man,  so  they  all  are  also  connected  with  eco- 
nomics. But  there  are  two  groups,  most  closely  related  to 
economics,  that  is,  the  moral  and  the  political  sciences.  We 
cannot  administer  wealth  in  society  without  "  fonnulating 
rules  "  as  to  what  is  right  and  what  is  wrong.  The  way  to 
'*  formulate  rules  "  is  through  moral  teachings,  and  under 
this  heading  come  the  sciences  of  language,  education,  ethics 
and   religion.      W'c  cannot  administer  wealth   in   a  society 


^O         THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

without  "  prohibiting  the  people  from  doing  wrong  ".  This 
we  must  do  by  political  organizations,  and  in  this  group 
come  the  sciences  of  politics  and  law.  All  of  these  sciences 
— economics,  ethics,  and  politics — are  part  of  the  science 
of  justice,  and  they  form  a  single  group.  But  of  them  all, 
economics  comes  first,  and  is  the  most  important.  If  we 
cannot  maintain  our  economic  life,  we  do  not  care  to  formu- 
late our  rules,  and  moral  science  is  useless;  we  do  not 
fear  the  prohibition  of  wrongdoing,  and  political  science 
is  without  force.  If  there  is  to  be  any  ethics  or  politics, 
there  must  be  economic  life  before  them.  The  "Appendix,'* 
therefore,  tells  us  not  only  the  close  connection  of  economics 
with  other  sciences,  but  also  the  relatively  higher  importance 
of  economics. 

In  the  "Great  Model"  contained  in  the  Canon  of  History, 
there  are  eight  objects  of  government:  "  The  first  is  called 
food;  the  second,  commodities;  the  third,  sacrifices;  the 
fourth,  the  minister  of  works ;  the  fifth,  the  minister  of  edu- 
cation; the  sixth,  the  minister  of  justice;  the  seventh,  the 
entertainment  of  guests;  and  the  eighth,  the  army."  ^ 

These  eight  objects  of  government  are  simply  the  eight 
objects  of  human  activities.  We  can  understand  their  rela- 
tion to  each  other  from  their  order.  First  of  all,  food  is 
most  important,  to  satisfy  hunger;  and  this  word  indicates 
agricultural  life.  The  word  commodities  includes  all  other 
economic  goods,  among  which  money  holds  a  prominent 
place,  and  indicates  commercial  and  industrial  life.  These 
two  words,  "  food  and  commodities  ",  represent  the  whole 
economic  life,  and  they  stand  first  before  any  other  human 
activities.  After  the  material  wants  are  satisfied,  religious 
worship  begins.  Then  comes  in  the  minister  of  works,  to 
improve  the  physical  environment ;  the  minister  of  education, 

^  Classics,  vol.  iii,  pt.  ii,  p.  327. 


ECONOMICS  AND  OTHER  SCIENCES 


51 


to  develop  the  intellectual  and  moral  power;  and  the  min- 
ister of  justice,  to  enforce  the  law.  Now,  the  life  of  polite 
society  is  developed,  and  this  is  called  the  entertainment  of 
guests.  Finally,  the  army  is  maintained  to  keep  the  whole 
society  in  peace. 

If  we  compare  the  eight  objects  of  the  "  Great  Model  " 
with  the  seven  sciences  that  Roscher  groups  together — lan- 
guage, religion,  art,  science,  law,  the  state  and  economy — we 
may  say  that  art  and  science  are  included  in  the  functions  of 
the  minister  of  works  and  the  minister  of  education,  that 
language  is  implied  in  education,  and  that  the  state  is  repre- 
sented by  all  eight  objects.  If  we  compare  them  with  the 
eight  groups  of  Prof.  R.  T.  Ely — language,  art,  education, 
religion,  family  life,  society  life,  political  life,  economic  life 
— we  may  say  that  the  family  life  is  a  concern  of  the  min- 
ister of  education.  It  is  remarkable  that  the  statement  of 
the  Confucian  Bible  is  so  similar  to  that  of  the  modern 
economists. 

It  should  be  noted  that  all  the  great  historians,  except 
Ssu-ma  Chien,  have  entitled  all  the  economic  histories  of 
different  dynasties  "  Record  of  Food  and  Commodities  ". 
This  shows  what  great  influence  Confucianism  exercises 
upon  the  economic  thought  of  the  Chinese. 

From  the  "  Great  Model/'  we  have  seen  the  relation  of 
economics  to  other  sciences  in  general ;  and  from  the  "  Ap- 
pendix ",  we  have  seen  the  relation  of  economics  to  soci- 
ology, politics  and  ethics  in  particular.  Now,  we  shall  study 
the  relation  of  economics  to  these  three  sciences  separately. 


CHAPTER  VI 

Economics  and  Sociology 

i.  economics  as  the  basis  of  sociology 

Since  economics  is  the  science  which  administers  wealth 
within  human  society,  we  shall  consider  first  the  relation  be- 
tween economics  and  sociology.  In  order  to  understand  this 
relation,  we  must  first  raise  the  question.  How  does  society 
come  to  exist  ?  For  the  answer  to  this  question,  the  "  Ap- 
pendix "  has  given  the  statement  quoted  above,  "  That  which 
enables  men  to  live  collectively,  is  wealth."  Therefore, 
sociology  is  dependent  upon  economics.  If  there  were  no 
wealth,  men  could  not  live  collectively,  and  there  would 
be  no  society.  Before  many  men  can  live  collectively,  man 
must  live  individually.  The  individual  man  cannot  live 
without  wealth,  but  can  live  without  society,  because  he  can 
get  wealth  from  nature  instead  of  men.  Therefore,  eco- 
nomics precedes  sociology. 

For  the  explanation  of  the  fundamental  cause  of  the 
formation  of  co-operative  groups,  Hsun  Tzu  gives  a  good 
sociological  theory,  and  it  answers  the  question  as  to  why 
society  comes  to  exist.     He  says : 

The  water  and  fire  have  breath,  but  without  life.  The  herb 
and  wood  have  life,  but  without  knowledg^e.  The  bird  and 
beast  have  knowledg^e,  but  without  justice.  Man  has  breath, 
life,  knowledg^e,  and  also  justice ;  hence  he  is  the  noblest  beings 
in  the  world.  His  strength  is  not  equal  to  that  of  the  bull, 
and  his  running:  is  not  equal  to  that  of  the  horse ;  yet  the  bull 
and  horse  are  subjected  to  him.  Why  ?  It  is  because  man 
52 


ECONOMICS  AND  SOCIOLOGY 


53 


is  able  to  be  social  and  they  are  not.  How  is  man  able  to  be 
social  ?  It  is  by  the  principle  of  individual  rig^ht.  How  can 
the  individual  right  be  realized  ?  By  justice.  Therefore, 
justice  and  individual  rig^ht  make  men  harmonious.  Since 
men  are  harmonious,  they  form  one  unity.  Since  they  form 
one  unity,  they  increase  their  streng^th.  Increasing^  their 
strengfth,  they  become  strong^.  Since  they  are  strong,  they 
conquer  the  natural  things.  Hence,  the  house  can  be  secured 
for  their  safety.  Hence,  they  arrange  the  four  seasons,  master 
all  things,  and  benefit  the  world  universally.  It  is  for  no  other 
cause  than  that  man  possesses  right  and  justice.  Therefore, 
when  man  is  bom,  he  cannot  get  along  without  society.  But 
if  society  did  not  distribute  the  individual  right  justly,  men 
would  quarrel.  If  they  were  to  quarrel,  society  would  be  dis- 
orderly. If  society  were  disorderly,  men  would  be  disunited. 
If  men  were  disunited,  they  would  be  weak.  If  they  were 
weak,  they  could  not  conquer  natural  things.  Hence,  the  house 
could  not  be  secured  for  their  safety.  All  of  which  means 
that  rites  and  justice  cannot  be  left  out  for  a  moment/ 

According  to  the  theory  of  Hsun  Tzu,  society  is  based  on 
legal  rights,  and  legal  rights  are  based  on  ethical  justice. 
But  the  reason  men  form  a  society  is  simply  because  they 
want  to  unite  in  order  to  conquer  the  natural  things  through 
their  collective  activities.  Therefore,  the  struggle  between 
men  and  animals  is  the  chief  cause  for  the  formation  of 
society.  Having  society,  they  are  strong  enough  to  con- 
quer these  things,  otherwise  they  cannot;  and  so  men  sur- 
vive through  being  social — a  foreshadowing  of  the  prin- 
ciple of  "  natural  selection  "  in  explaining  the  development 
of  sociality.  Indeed,  in  men's  economic  needs  is  found  the 
primary  cause  of  the  formation  of  society. 

Pan  Ku  (583-643  A.  K.  or  32-92  A.  D.)  says: 

Imitating   the   manner   of   heaven  and   earth,  embracing   the 

'Bk.  ix. 


54         THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

nature  of  the  five  moral  constants,  man,  who  is  wise,  subtile 
and  pure,  is  the  most  intelligent  being:  of  all  the  species. 
His  fingfer  nails  and  his  teeth  cannot  supply  his  wants.  His 
running:  cannot  escape  danglers.  He  himself  has  no  fur  nor 
feather  ag^ainst  heat  and  cold.  He  must  enslave  natural 
things  in  order  to  provide  for  his  nourishment.  Trusting:  to 
intellectual  power  and  not  to  physical  streng:th,  he  is  the 
noble  being:.  Therefore,  if  men  did  not  love  each  other,  they 
could  not  be  social.  If  they  were  not  social,  they  could  not 
conquer  natural  thingfs.  If  they  could  not  conquer  natural 
thing:s,  their  nourishment  would  be  insufficient.  When  they 
g:ather  tog:ether,  but  their  nourishment  is  insufficient,  the 
warring:  spirit  arises.  The  g:reat  sag:e  first  superexcellently 
practises  the  virtues  of  respect,  deference,  and  universal  love, 
so  that  the  mass  of  people  love  and  follow  him.  If  the  people 
follow  him  and  form  a  society,  he  is  the  ruler.  If  the  people 
come  and  g:o  to  him,  he  is  the  king:.^ 

According  to  the  theory  of  Pan  Ku,  society  is  based  on 
love.  But  why  should  men  love  each  other  and  form  a 
society?  This  is  simply  because  men  have  to  conquer 
nature  for  their  nourishment.  Here,  Pan  Ku  gives  the  same 
reason  for  the  formation  of  society  as  that  which  is  given 
by  Hsun  Tzu,  namely,  economic  utility.  But  Hsun  Tzu 
mentions  the  house  because  he  emphasizes  the  struggle  for 
safety,  while  Pan  Ku  mentions  nourishment,  because  he  em- 
phasizes the  struggle  for  subsistence.  Yet  their  fundamental 
point  is  the  same. 

The  social  constitution  is  established  not  always  accord- 
ing to  the  idea  of  the  sages,  but  mostly  through  the  histori- 
cal development  of  actual  conditions.  And  this  actual  con- 
dition is  based   on  economic  causes,  namely,  the  struggle 

^History  of  Han,  ch.  xxiii.  The  word  "society"  and  the  word 
"ruler"  in  the  Chinese  language  are  both  pronounced  chun,  and  the 
words  "go"  and  "king,"  wan^.  In  the  Chinese  characters,  the 
words  in  each  pair  have  also  marked  similarity  in  form. 


ECONOMICS  AND  SOCIOLOGY  55 

for  existence.     In  his  "  Essay  on  Feudalism  ",  Liu  Chung- 
yuan  ( 1 324-1 370  A.  K.  or  773-819  A.  D.)  says: 

In  the  begfinningf  man  is  born  at  the  same  time  with  other 
thingfs.  The  veg^etable  king^dom  is  wild,  and  the  animal  king:- 
dom  is  cruel.  Man  cannot  fig^ht  with  his  hand  and  eat  with 
his  mouth,  as  can  the  beast.  He  also  has  no  feathers,  as  has 
the  bird.  He  is  unable  to  be  self-supporting"  and  self-protect- 
ing:. Hsun  Tzu  has  said  that  he  must  borrow  some  material 
thing's  from  outside  for  his  use.  Generally,  if  he  borrows 
some  material  things  from  outside,  struggle  or  war  must  arise. 
If  the  war  is  ceaseless,  he  must  come  to  one  who  can  decide 
the  dispute,  and  must  obey  his  dictate.  Those  who  are  the 
wise  men  must  have  a  great  number  of  subjects.  When  the 
wise  men  tell  them  what  is  right  and  they  do  not  correct 
themselves,  punishment  must  be  used  to  increase  their  fear. 
In  this  way,  the  ruler,  the  leader,  laws  and  politics  arise. 
Therefore,  the  men  of  the  neighborhood  organize  themselves 
into  a  society.  But,  when  the  society  is  formed,  the  division 
is  sharper,  and  the  war  must  be  greater.  When  the  war  is 
greater,  military  force  and  personal  virtue  are  more  import- 
ant. If  there  are  those  who  possess  the  greater  virtue,  the 
leaders  of  various  societies  will  come  to  them  and  obey  their 
dictate,  in  order  to  keep  their  members  peaceful.  Hence,  the 
class  of  feudal  lords  exists ;  but  the  war  is  still  greater.  If 
there  are  those  who  possess  still  greater  virtue,  the  feudal 
lords  will  come  to  them  and  obey  their  dictate,  in  order  to 
keep  their  territory  peaceful.  Hence,  some  sort  of  leading 
princes  exist ;  but  the  war  is  still  greater.  If  there  is  a  man 
whose  virtue  is  greatest  of  all,  the  leading  princes  will  come 
to  him  and  obey  his  dictate,  in  order  to  keep  all  the  people 
peaceful.  Then  the  whole  world  is  united  into  one.  There- 
fore, there  must  be  first  the  masters  of  towns,  then  the  magis- 
trates of  districts.  Having  the  niaq^istrates,  then  come  the 
feudal  lords.  Having  the  feudal  lords,  then  come  the  leading 
princes.  Having  leading  princes,  then  arises  the  emperor. 
From   the  emperor   to   the   town-master,   if   their   virtue   has 


^6  THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

impressed  the  mind  of  the  people,  the  people  certainly  sup- 
port their  posterity,  after  their  death,  in  holding:  their  office 
througfh  hereditary  right.  Therefore,  feudalism  is  not  the 
idea  of  the  sagfes,  but  only  the  necessity  of  the  condition. 

According  to  Hsun  Tzii,  society  is  based  on  justice;  ac- 
cording to  Pan  Ku,  on  love ;  and  according  to  Liu  Chung- 
yiian,  on  necessity.  These  three  theories — legal,  ethical  and 
historical — are  correct,  although  they  are  from  different 
points  of  view.  But  v^^hy  does  society  come  to  exist?  On 
this  point,  they  give  the  same  answer.  Man  is  physically 
weaker  than  other  animals.  If  he  wants  to  conquer  other 
things,  or  enslave  them,  or  borrow  them  from  outside,  he 
must  make  himself  stronger.  If  he  wants  to  make  himself 
stronger,  he  must  co-operate  with  his  fellows.  If  he  co- 
operates with  his  fellows,  such  a  society  must  be  based  on 
justice,  love  and  necessity  to  avoid  war  and  keep  peace. 
Therefore,  society  is  the  result,  but  economic  life  is  the 
cause.  Had  the  human  being  had  no  economic  needs,  so- 
ciety would  not  exist.  Why  do  men  regard  social  justice 
and  observe  individual  right  ?  Why  do  men  love  each  other 
and  restrain  the  warring  spirit?  Why  do  men  make  war 
against  each  other  before  society  is  formed,  and  why  is  the 
war  still  greater  when  that  society  is  larger?  Why  do  the 
warlike  animals  subdue  their  passions  and  come  to  the  arbi- 
trator, obey  the  law  of  the  ruler  and  keep  peace  among 
themselves?  It  is  simply  for  their  own  interest.  But  their 
own  interest  is  nothing  greater  than  the  economic  interest. 
In  a  word,  society  is  an  organization  carrying  on  the  strug- 
gle for  existence  in  collective  form.  Ethics  and  law,  re- 
ligion and  politics,  love  and  hatred,  peace  and  war,  justice 
and  injustice,  all  of  them  are  the  results  of  economic  causes. 
Indeed,  economic  interest  is  the  basis  of  everything.  Ac- 
cording to  Liu  Chung-yiian,  war  continues  among  the  dif- 


ECONOMICS  AND  SOCIOLOGY 


57 


erent  sizes  of  societies,  and  it  ceases  only  in  the  unification 
of  the  whole  world.  It  is  the  doctrine  of  "great  uniformity" 
of  Confucius.  But,  in  the  past,  the  world  from  the  Chinese 
point  of  view  was  fictitious ;  in  the  present,  the  world  is  the 
real  one.  By  the  application  of  "  great  uniformity  "  to  the 
real  world,  the  whole  world  will  be  equalized  into  a  single 
economic  unit,  and  industrialism  instead  of  militarism  will 
dominate  the  globe.  In  short,  world  economy  is  the  solu- 
tion of  the  problems  of  world  sociology,  and  it  is  the  step 
to  the  stage  of  Great  Similarity. 

II.    ECONOMICS   AS   THE    BASIS    OF    RELIGION 

As  religion  is  a  great  force  in  social  life,  we  may  ask 
how  it  comes  to  exist.  The  answer  to  this  question  is  given 
by  Confucius,  who  says: 

The  first  development  of  relig^ion  beg^an  with  food  and  drink. 
Primitive  people  roasted  millet  and  pieces  of  pork  on  heated 
stones ;  they  excavated  the  gfround  in  the  form  of  a  jar,  and 
scooped  the  wine  from  it  with  their  two  hands  ;  they  fashioned 
a  handle  of  clay,  and  struck  with  it  an  earthen  drum.  Simple 
as  this  economic  life  was,  they  yet  seemed  to  be  able  to  ex- 
press by  these  things  their  reverence  for  spiritual  beingfs.' 

That  is,  food  and  drink  follow  heaven  and  earth,  and  wor- 
ship follows  food  and  drink.  This  means  that  immediately 
after  the  creation  of  heaven  and  earth,  as  soon  as  there  is  a 
man,  there  must  be  economic  life;  and  that  the  religious  life 
comes  next.  The  ''  Great  Model,"  therefore,  puts  "  sacri- 
fices "  next  only  to  "  food  and  commodities  ".  Indeed,  eco- 
nomic satisfaction  is  the  condition  necessary  for  the  de- 
velopment of  religion. 

'A;  AV.  bk.  vii,  p.  368. 


58 


THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 


III.    ORIGIN  OF  MAN 

Since  economics  and  sociology  are  interdependent,  we 
should  study  the  sociological  teachings  of  Confucius  in 
order  the  better  to  understand  his  economic  teachings. 
Among  all  his  sociological  teachings,  there  is  nothing  more 
important  than  the  doctrines  of  the  fatherhood  of  God 
and  the  brotherhood  of  man.  With  these  doctrines  as  a 
basis,  there  arise  the  principle  of  universal  love,  the  prin- 
ciple of  universal  equality^  and  the  principle  of  individual 
independence.  We  may  designate  these  doctrines  by  a 
phrase — the  origin  of  man.  One  cannot  understand  the 
foundations  of  society  until  he  knows  the  origin  of  man, 
but  he  cannot  think  of  the  origin  of  man  until  he  satisfies  his 
economic  wants. 

We  have  already  said  that  the  word  Yiian  is  similar  to 
the  word  God  and  that  they  are  different  only  from  differ- 
ent points  of  view.  However,  we  shall  discuss  them  more 
fully,  and  take  up  the  doctrine  of  Yiian  first.  The  word 
Yiian  is  the  first  word  of  the  Spring  and  Autumn,  and 
it  is  the  chief  principle  of  Confucius'  philosophy.  Or- 
dinarily, one  says  the  first  year  of  the  reign  of  so  and  so, 
but  Confucius  says,  "  yuan  year  "  instead  of  the  first  year. 
Ho  Hsiu  comments:  "  Yiian  is  the  infinite  breath,  from 
which  the  immaterial  things  arise  and  the  material  things 
are  separated.  It  creates  heaven  and  earth,  and  it  is  the 
beginning  of  heaven  and  earth."  This  is  the  theory  of 
creation  in  Confucianism.  The  Many  Dewdrops  of  the 
Spring  and  Autumn  ^  says :  "  Only  the  holy  man  can  relate 
the  myriad  of  things  to  one  and  subject  them  to  the  Yiian. 
.  .  .  YUan  means  the  origin.  .  .  .  Yiian  is  the  root  of 
everything,  upon  which  the  origin  of  man  depends.  Where 
is  the  origin  of  man?    It  precedes  heaven  and  earth."    The 

'Written  by  Tung  Chung-shu,  bk.  xiii. 


ECONOMICS  AND  SOCIOLOGY  59 

Canon  of  Changes  says :  *'  How  great  the  masculine  Yiian 
is!  All  things  owe  to  it  their  beginning.  It  governs  the 
heavens."  ^ 

Yiian  is  the  ruling  power  governing  the  whole  universe. 
It  is  interpreted  most  clearly  by  Ho  Hsiu,  who  says,  ''  Yiian 
is  the  infinite  breath."  In  fact,  it  is  the  natural  and  origi- 
nating force  of  everything.  In  the  "  Evolution  of  Civiliza- 
tion," it  is  called  Grand  Unity.^  In  the  ''  Appendix,"  it 
is  called  Grand  Summit.^  But  the  name  of  Grand  Unity 
can  be  changed  into  the  word  Heaven  in  the  ''  Evolution 
of  Civilization,"  and  the  word  Heaven  is  identified  with  the 
word  God  in  many  places.  Therefore,  the  word  Yiian  is 
identified  with  the  word  God.  The  reason  Confucius  pre- 
fers the  word  Yiian  to  the  word  God  is  because  Yiian  is 
infinite,  while  God  is  personal.  Indeed,  Confucius  writes 
from  the  philosophical  rather  than  from  the  religious  point 
of  view. 

Since  Yiian  is  the  origin  of  everything,  the  origin  of  man 
must  be  derived  from  it.  But  it  is  not  only  the  origin  of 
man,  but  also  the  origin  of  the  heavens.  Therefore,  man 
may  originally  have  come  from  Yiian  either  at  the  same 
time  with  the  heavens,  or  afterward,  or  even  before  them. 
This  doctrine  is  the  highest  theological  stage.  It  makes 
every  man  free  from  supernatural  power,  and  dependent 
upon  his  own  conscience.  According  to  this  doctrine,  we 
may  call  Yiian  our  father,  instead  of  God ;  and  we  may  call 
not  only  all  men  our  brothers,  but  even  all  the  heavens. 
Wearing  the  heavens,  and  standing  upon  the  earth,  how 
noble  is  man!  All  that  man  can  do  and  all  that  he  ought 
to  do  are  merely  the  duties  of  man,  and  nothing  else.  The 
object  of  man  is  simply  to  be  a  man.  Man  is  not  only  the 
son  of  God,  but  also  his  assistant  and  his  co-ordinate. 

'  >V  k'int:,  p.  213.  ^  Li  A'l,  bk.  vii,  p.  386. 

•  >V  AVw.e,  p.  3' 3- 


6o         THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

We  now  come  to  the  doctrine  of  the  fatherhood  of  God 
proper,  stated  very  clearly  in  Ku-liang's  Commentary, 
which  says: 

The  female  alone  cannot  g^ive  birth ;  the  male  alone  cannot 
gfive  birth ;  and  God  alone  cannot  g^ive  birth.  The  three  must 
unite  to§:ether,  then  there  is  a  birth.  Therefore,  we  may  call 
anyone  either  the  son  of  his  mother,  or  the  son  of  God.  But, 
according  to  his  social  position,  the  honorable  person  takes 
the  honorable  designation,  while  the  common  people  take  the 
common  one.  That  some  one  is  called  king  is  simply  because 
the  people  come  to  him/ 

This  is  the  doctrine  of  the  trinity  in  the  Confucian  religion; 
it  means  that  the  union  of  father,  mother,  and  God,  gives 
birth  to  everyone.  The  Many  Dewdrops  of  the  Spring  and 
Autumn  says:  "  There  never  has  been  a  birth  without  the 
influence  of  God.    God  is  the  father  of  everything."  ^ 

The  doctrine  of  the  brotherhood  of  man  has  already  been 
included  in  the  doctrine  of  the  fatherhood  of  God.  But  we 
may  quote  two  passages  showing  this  doctrine  separately. 
Confucius  says:  "All  within  the  four  seas  are  brothers."^ 
Again  he  says :  "  A  holy  man  is  able  to  make  the  whole 
world  as  one  family,  and  the  Middle  Kingdom  as  one  per- 
son." *  Therefore,  from  Confucius'  point  of  view,  the  whole 
world  is  but  a  single  family,  and  all  the  men  are  brothers  of 
this  same  family. 

The  best  explanation  for  the  principle  of  universal  love 
is  given  by  Chang  Tsai,  a  great  Confucian  in  the  Sung  dy- 
nasty (1571-1628,  or  1020-1077  A.  D.).     He  says: 

The  virtue  of  Heaven  is  called  our  Father,  and  the  virtue  of 
Earth  is  called  our  Mother.     Although  we  are  small  beings,  we 

'3rd  year  of  Duke  Chuang.  *  Bk.  Ixx. 

^  Quoted  by  Tzu-hsia,  Classics,  vol.  i,  p.  253. 

*  Li  Ki,  bk.  vii,  p.  379. 


ECONOMICS  AND  SOCIOLOGY  6l 

are  their  mixture  and  stand  firmly  in  the  middle.  Therefore, 
the  full  breath  of  Heaven  and  Earth  is  our  body,  and  the  strong 
spirit  of  Heaven  and  Earth  is  our  mind.  All  people  are  our 
brothers,  and  all  things  are  our  companions.  Tlie  great  ruler 
is  the  heir  of  our  Parents,  and  the  great  minister  is  his  steward. 
To  respect  the  seniors  of  the  world  is  to  honor  our  older 
brothers,  and  to  pity  the  weak  is  to  help  our  younger  brothers. 
The  holy  men  are  those  who  possess  virtue  equal  to  that  of  our 
Parents,  and  the  wise  men  are  the  leaders  of  ourselves.  All 
the  unfortunate  persons  of  the  world,  through  physical  weari- 
ness, old  age,  severe  sickness,  the  brotherless,  childless,  widow- 
ers and  widows,  are  calamitous  and  helpless  brothers  of  our 
own.^ 

As  to  the  principle  of  universal  equality,  we  may  look 
at  it  from  two  aspects.  First,  from  the  religious  aspect,  not 
only  the  founder  of  a  religion  is  the  son  of  God,  but  every- 
one is  the  son  of  God.  On  this  point,  Confucianism  is  more 
democratic  than  Christianity,  because  the  Confucians  never 
say  that  Confucius  is  the  '*  only  begotten  son  "  of  God. 
Mencius  says :  ''  The  holy  man  and  we  are  the  same  in 
kind."  ^  The  Confucian  religion  gives  full  freedom  of 
thought  to  everybody,^  and  promotes  everybody  to  the  high- 
est position,  equal  to  God.  The  Confucian  church  has 
never  had  such  a  head  as  the  pope,  and  the  Chinese  emperor 
is  not  the  head  of  the  church.  Throughout  the  whole  of 
Chinese  history,  no  blood  has  ever  been  shed  on  account 
of  religious  controversy.  In  a  word,  China  enjoys  com- 
plete religious  freedom. 

Second,  from  the  political  aspect,  not  only  is  the  em- 
peror the  son  of  God,  but  every  one  is  the  son  of  God. 
In  Confucianism,  there  is  no  such  thing  as  the  "  divine 
right  "  theory.     Five  hundred   and  seventy-one  years  be- 

^  Correction  of  the  Vouth,  ch.  xvii. 

*  Classics,  vol.  ii,  p.  405.  •  Kj  King,  p.  389. 


62         THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

fore  Confucius,  Chou  Wu  Wang  cut  off  the  head  of  the 
Emperor  Chou,  and  put  it  on  the  top  of  a  flag.  Confucius 
said  that  the  revolution  of  Wu  Wang  was  in  accordance 
with  the  will  of  God.^  Mencius  also  said  that  the  act 
of  Wu  Wang  was  not  that  of  a  regicide,  but  simply  the 
execution  of  an  outcast.^  From  343  to  350  A.  K.  (209- 
202  B.  C.)  China  had  as  great  a  revolution  as  had  France 
in  2341  A.  K.  (1790  A.  D.).  By  this  great  revolution,  the 
common  people  began  to  rule  the  empire.  Hence,  China 
has  been  at  the  stage  of  democracy  since  this  revolution, 
although  in  many  respects  she  did  not  change  the  mon- 
archical form.  The  General  Discussion  in  the  White  Tiger 
Palace^  says:  "The  nomination,  'The  Son  of  God,'  [em- 
peror], is  merely  an  honorable  title."  Indeed,  China  has 
been  the  most  democratic  country  of  the  world,  with  the 
exception  of  the  really  constitutional  states  at  the  present 
time. 

The  best  illustration  of  the  principle  of  individual  inde- 
pendence is  given  in  the  General  Discussion  in  the  White 
Tiger  Palace.    It  says : 

Why  should  a  father  be  executed  for  killingf  his  son?  * 'Among 
all  the  lives  given  by  Heaven  and  Earth,  that  of  man  is  the 
noblest."  All  men  are  the  children  of  God,  and  are  merely 
born  throug^h  the  breath  of  father  and  mother.  The  emperor 
should  nourish  and  teach  them.  Hence  the  father  has  no 
absolute  power  over  his  son.* 

This  is  a  very  important  principle  of  Confucius.  Unless 
we  understand  it,  we  might  make  the  mistake  of  thinking 
that  in  accordance  with  the  teachings  of  Confucius  a  father 
has  the  power  of  life  and  death  over  his  son,  and  the  son  has 
no  independence.     But  this  is  not  the  case.     In  a  family, 

'  y^  ^'i^^,  P-  254.  ''Classics,  vol.  ii,  p.  167. 

•Written  by  Pan  Ku  in  630  (79  A.  D.),  bk.  i.  *Bk.  v. 


ECONOMICS  AND  SOCIOLOGY  63 

one  is  the  son  of  his  father;  in  a  state,  he  is  the  citizen  of 
the  emperor;  in  the  universe,  he  is  the  son  of  God.  There- 
fore, according  to  the  Canon  of  History,  the  punishment 
for  the  unkind  father  is  equal  to  that  for  the  undutiful  son, 
and  no  member  of  the  family  is  responsible  for  the  crime  of 
any  other  member.^ 

This  is  personal  liberty.  But  we  should  consider  also 
personal  responsibility.  Confucius  puts  great  emphasis  on 
the  cultivation  of  personality.  The  "  Great  Learning  "  says : 
"  From  the  emperor  down  to  the  mass  of  the  people,  all 
must  consider  the  cultivation  of  personality  the  root  of 
everything  besides."  "  Ts^eng  Tzu  says :  "  One  cannot  be  a 
student  without  breadth  of  mind  and  vigorous  endurance. 
His  responsibility  is  heavy  and  his  way  is  long.  He  as- 
sumes universal  love  as  his  own  responsibility; — is  it  not 
heavy?  Only  with  death  does  his  way  come  to  an  end; — 
is  it  not  long?"  ^  This  is  the  type  of  student  from  the  Con- 
fucian standpoint.  After  Mencius,  Lu  Chiu-yuan  (1691- 
1743  A.  K.  or  1140-1192  A.  D.)  and  Wang  Shou-jen  dis- 
tinguished their  school  on  the  basis  of  personal  liberty  and 
personal  responsibility.  The  teachings  of  Lu  Chiu-yiian 
are  as  follows:  "  Even  if  I  do  not  know  a  single  word,  I 
must  try  my  best  to  become  a  man  gloriously."  "  While 
above  is  heaven  and  below  is  earth,  man  lives  in  the  middle. 
Unless  he  is  able  to  become  a  man,  his  life  is  of  no  use." 
Indeed,  the  Confucians  put  a  great  deal  of  emphasis  on 
personal  responsibility,  since  man  is  the  son  of  God  and  is 
independent. 

IV.    POSITION   OF  WOMAN 

Next  to  the  origin  of  man.  the  most  important  question 
is  the  position  of  woman.     Since  man  and  woman  are  the 

^  Cf.  Classics,  vol.  iii.  pt.  ii.  pp.  3Q2-3. 

^Classics,  vol.  i.  p.  .^95.  ^Ibid.,  pp.  210-J11. 


64         THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

two  component  parts  of  society,  her  position  is  very  im- 
portant, not  only  for  the  social  life,  but  also  for  the  eco- 
nomic life.  Therefore,  we  shall  study  her  position  from  the 
point  of  view  of  Confucius. 

First,  according  to  the  teachings  of  Confucius,  the  posi- 
tion of  woman  is  equal  to  that  of  man.  From  the  emperor 
to  the  common  people,  the  wife  of  each  is  his  equal.  There- 
fore, the  word  wife  means  equal.  And  the  Canon  of 
Changes  even  says  that  with  the  repression  of  the  one  for 
the  satisfaction  of  the  other,  man  is  placed  below  woman 
in  relative  position.^  Hence,  the  relation  of  husband  and 
wife  is  called  ''  brothers  "  by  Confucius.^  And  the  Canon 
of  Poetry  also  says :  "  Love  your  bride  as  your  brothers."  ^ 

For  the  equality  of  man  and  woman,  Confucius  pre- 
scribes the  rite  of  '*  personal  receiving "  as  a  necessary 
ceremony  for  marriage,  that  is,  the  bridegroom  must  go  to 
the  bride's  home  to  receive  her  personally.  This  rite  is 
necessary  for  all  classes,  not  excepting  even  the  emperor. 
In  the  Canon  of  Poetry  and  the  Spring  and  Autumn,  there 
are  many  condemnations  of  those  who  do  not  observe  this 
rite.  Confucius  was  asked  by  Duke  Ai  of  Lu  if  to  wear  a 
crown  for  the  exercise  of  "  personal  receiving  "  would  be 
too  ceremonious.  Confucius  answered  him  by  saying  that 
an  emperor  must  pay  respect  to  his  wife.*  Indeed,  the  rite 
of  '*  personal  receiving  "  is  to  indicate  the  principle  of  re- 
spect for  woman.  Mo  Tzii  attacked  Confucius  on  this  point 
by  saying  that  one  is  as  respectful  and  humble  as  a  servant 
to  his  wife;  that  the  ceremony  of  taking  her  to  the  carriage 
is  like  the  service  due  to  one's  parents;  and  that  all  the 

'  Yi  King,  p.  238. 

T/.  Li  hi,  bk.  v,  p.  320.     But  it  is  incorrectly  translated. 

Classics,  vol.  iv,  pt.  i,  p.  54.  / 

*  Li  Ki,  bk.  xxiv,  pp.  264-6. 


ECONOMICS  AND  SOCIOLOGY  65 

ceremonies  of  marriage  are  as  solemn  as  those  of  sacrilices.^ 
From  the  argument  of  Mo  Tzu,  we  know  clearly  that  Con- 
fucius raised  the  position  of  woman  very  high. 

Another  example  illustrating  the  equality  of  man  and 
woman  is  that  the  married  woman  preserves  her  own  name 
after  marriage.  We  shall  see  that  Confucius  regards  the 
name  of  anyone  as  very  important  as  it  identifies  the 
personailty  and  is  dearer  even  than  life.^  If  anyone  can- 
not have  his  own  name,  it  means  that  he  loses  his  per- 
sonality and  cannot  leave  any  mark  upon  the  world.  This 
is  the  worst  of  calamities.  Europeans  and  Americans  are 
proud  of  the  high  position  of  their  women,  but  the  married 
woman  must  give  up  her  own  name,  and  adopt  the  name 
of  her  husband,  being  known  as  Mrs.  So-and-so.  This 
means  that  she  cannot  keep  her  individuality  and  is  merely 
a  dependant  of  her  husband ;  whereas,  among  the  Chinese, 
the  married  'woman  has  hei  individual  name.  In  the 
Spring  and  Autumn,  Confucius  always  gives  the  name  of 
the  women  themselves,  such  as  Po-chi,  Shu-chi,  Chi-chi, 
Chung-tzu,  Ch'eng-feng,  etc.  It  shows  that  woman  does  not 
lose  her  individuality  after  marriage,  and  that  she  is  equal 
to  man. 

Second,  we  shall  consider  the  separation  of  the  two 
sexes.  This  was  an  old  custom,  and  was  recognized  by  Con- 
fucius.    The  ''  Details  of  Rites"  says: 

Man  and  woman  should  not  sit  together  in  the  same  apart- 
ment, .  .  .  nor  let  their  hands  touch  in  giving  and  receiving. 
A  sister-in-law  and  brother-in-law  do  not  interchansfe  compli- 
ments about  each  other.  .  .  .  When  a  young  lady  has  been 
engaged,  ...  no  man  should  enter  the  door  of  her  apartment, 
unless  there  be  some  g^rave  occasion  [such  as  great  sickness, 
or  death,  or  other  jjreat  calamity].  When  a  married  aunt,  or 
sister,  or  daughter,  returns  home  on  a  visit,  no  brother  of  the 
'  Bk.  xix.  'See  infra. 


66  THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

family  should  sit  with  her  on  the  same  mat  or  eat  with  her 
from  the  same  dish.  Even  father  and  dang^hter  should  not 
occupy  the  same  mat.  Man  and  woman,  without  the  inter- 
vention of  the  matchmaker,  do  not  know  each  other's  name. 
Unless  the  eng^ag^ement  has  been  accepted,  there  should  be  no 
communication  or  affection  between  them.' 

Since  human  nature  is  universally  the  same,  the  social 
life  of  the  Far  East  cannot  differ  very  much  from  that  of 
the  West.  Therefore,  the  separation  of  the  two  sexes  was 
not  the  original  plan  in  China.  In  the  Canon  of  Poetry, 
there  are  many  poems  describing  a  social  life  quite  like 
that  of  the  West  to-day.  We  may  select  two  stanzas  from 
two  poems  for  examples.     The  one  reads  this  way : 

The  Tsin  and  the  Wei, 

Now  present  their  broad  sheets  of  water. 

Ladies  and  gfentlemen 

Are  carrying:  flowers  of  valerian. 

A  lady  says,  ''Shall  we  go  to  see  ?" 

A  gentleman  replies,  "  I  have  already  been." 

"  But  let  us  go  again  to  see. 

Beyond  the  Wei 

The  ground  is  large  and  fit  for  pleasure." 

So  the  gentlemen  and  ladies 

Make  sport  together, 

Presenting  one  another  with  small  peonies.'^ 

The  other  reads  as  follows: 

[The  girl]  g^oes  out  on  a  fine  morning ; 
Then  [the  boy  and  girl]  proceed  together. 
'  I  look  on  you  as  the  flower  of  the  thorny  mallows  ; 
You  gfive  me  a  stalk  of  the  pepper  plant !"  '* 

^  Li  hi,  bk.  i,  pp.  77-8. 

^Classics,  vol.  iv,  pt.  i,  p.  148.  "Ibid.,  p.  207. 


ECONOMICS  AND  SOCIOLOGY  67 

From  what  has  been  described  by  the  two  stanzas,  the 
reader  may  not  find  any  difference  in  the  social  life  of  the 
West  and  China;  and  he  may  not  see  any  wrong  in  such  a 
gathering  of  the  two  sexes.  But  Confucius  puts  them  in 
the  Canon  of  Poetry  as  bad  examples  of  a  lewd  custom. 
The  separation  of  the  sexes  was  indeed  generally  approved 
by  the  ancient  Chinese,  bur  such  a  theory  was  strengthened 
very  much  by  Confucius. 

The  separation  of  the  sexes  was  developed  on  historical 
facts.  Formerly,  when  the  princes  called  on  each  other, 
the  princess  came  out  with  her  husband  for  the  "  great 
entertainment  "  of  the  guests.  But,  the  Marquis  of  Yang, 
on  such  an  occasion,  killed  the  Marquis  of  Mu,  and  stole 
away  his  wife.  This  is  something  like  the  story  of  the 
Trojan  War,  when  Paris  visited  the  Spartan  king,  Mene- 
laus,  and  took  away  secretly  his  wife,  Helen.  According  to 
Confucius,  the  abolition  of  the  practice  of  making  a  princess 
part  of  the  "  great  entertainment  "  was  due  to  the  Marquis 
of  Yang.^  From  this  instance,  we  can  see  that  the  sexes 
were  not  formerly  separated  so  severely  as  in  later  times. 
But  such  a  custom  was  gradually  developed  in  many  cases, 
even  long  before  the  age  of  Confucius. 

The  simple  reason  for  the  separation  of  the  sexes  is  for 
the  preventing  of  illicit  intercourse.     Confucius  says: 

The  ceremonial  usages  prevent  the  people  from  excesses  ;  they 
display  the  separation  which  should  be  maintained  between 
the  sexes  ;  and  they  make  the  people  free  from  suspicion,  in 
order  to  define  the  relations  of  the  people.  Therefore,  man 
and  woman  do  not  make  friendship  when  there  is  no  go-be- 
tween, and  they  do  not  meet  tog^ether  when  there  is  no  cere- 
monial present  ; — these  are  for  the  distinction  between  the 
two  sexes.' 

^ Li  Kiy  bk.  xxvii,  p.  298. 

^ Ibid.,  p.  2i)y.     But  its  translation  has  left  out  a  few  sentences. 


68         THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

Although  the  separation  of  the  two  sexes  has  raised  the 
standard  of  morahty,  it  has  retarded  economic  development. 
Montesquieu  says: 

The  society  of  the  fair  sex  spoils  the  manners  and  forms  the 
taste ;  the  desire  of  g'iving:  g-reater  pleasure  than  others  estab- 
lishes the  embellishments  of  dress  ;  and  the  desire  of  pleasing" 
others  more  than  ourselves  gives  rise  to  fashions.  This 
fashion  is  a  subject  of  importance ;  by  encouraging  a  trifling 
turn  of  mind,  it  continually  increases  the  branches  of  its  com- 
merce.' 

From  this  statement  of  Montesquieu,  we  may  understand 
why  the  economic  condition  of  China  has  been  stationary 
for  so  long  a  time.  The  chief  reason  for  it  is  that  the 
Chinese  woman  has  been  separated  from  the  man,  so  that 
social  life  is  dry  and  commercial  development  slow.  Setting 
aside  the  question  of  right  and  wrong,  woman  is,  in- 
deed, the  spice  of  society,  and  the  promoter  of  economic 
progress.  But  the  ancient  Chinese,  although  they  might 
have  realized  the  economic  advantage  of  letting  woman 
share  society  with  man,  were  afraid  of  the  moral  disad- 
vantage, her  possible  loss  of  chastity. 

We  must  understand,  however,  that  the  separation  of 
the  sexes  does  not  mean  that  woman  is  not  the  equal  of 
man.  Of  course,  in  a  paternal  society,  woman  inevi- 
tably suffers  many  disadvantages.  But,  as  far  as  the 
separation  is  concerned,  woman  is  equal  to  man.  Though 
women  cannot  join  the  social  gatherings  of  men,  and 
so  lose  a  great  amount  of  social  pleasure,  on  the  other 
hand,  men  cannot  share  the  social  gatherings  of  women, 
and  they,  too,  suffer  the  loss  of  such  social  pleasure.  On 
this  point,  man  never  can  have  more  privileges  than  woman, 

^Spirit  of  Laws,  vol.   i,   p.  318.     Bohn's  Library,  George    Bell  & 
Sons,  1906. 


ECONOMICS  AND  SOCIOLOGY  69 

although  he  belongs  to  the  more  fortunate  sex  and  may 
enjoy  some  things  which  woman  cannot  have.  Thus,  the 
fundamental  principle  of  equality  is  not  altered  by  the 
separation. 

Third,  we  shall  see  that  Confucius  has  sanctioned  the 
social  intercourse  of  man  and  woman.  According  to  his 
tsing  tien  system,  during  the  winter,  from  the  tenth  month 
to  the  first,  men  and  women  should  work  together  at 
weaving  in  the  same  street  from  evening  to  midnight.  This 
is  an  extremely  unusual  example  of  the  commingling  of  the 
sexes  and  the  promotion  of  social  intercourse.  Moreover, 
during  these  four  months,  whenever  men  and  women  have 
any  dissatisfaction,  the  two  sexes  may  sing  together  to  ex- 
press their  discontent.^  This  afifords  great  freedom  of  social 
contact  of  the  two  sexes. 

Again,  according  to  the  principles  of  Spring  and  Autumn, 
the  queen  and  princess  must  have  teachers  and  nurses.  The 
teachers,  who  are  selected  from  the  old  great  officials,  look 
after  their  conduct.  The  nurses,  who  are  selected  from  the 
wives  of  the  great  officials,  look  after  their  physical  wel- 
fare.^ This  principle  is  quite  significant.  As  soon  as  the 
old  great  officials  can  be  selected  as  the  teachers  of  the 
queen  and  princess,  the  separation  of  men  and  women  is 
destroyed.  Therefore,  separation  is  not  the  ideal  of  Con- 
fucius, but  only  a  necessary  custom  for  the  time  toeing. 

Fourth,  the  political  rights  of  woman  are  given  to  her  by 
Confucius,  and  these  rights  are  indicated  in  the  instance  of 
holding  office.  This  principle  is  one  of  the  most  valuable 
things  mentioned  in  the  Spring  and  Autumn.  Under  the 
tsing  tien  system  of  Confucius,  if  the  women  have  no 
cliildren  at  the  age  of  fifty,  they  are  to  be  given  clothes  and 
fond   bv    the    gn\-crnment ;   anrl    they    are    to   be   appointed 

'The  Annotation  of  Kunj^-yang;,  15th  year  of  Duke  Hsuan. 
'30th  year  of  Duke  Hsiang. 


yo         THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

coniiiiissioners  for  the  collection  of  poetry  from  the  people/ 
This  shows  that  Confucius  thinks  that  women  are  qualified 
to  hold  government  office.  Since  the  commission  of  col- 
lecting poetry  is  equal  to  the  imperial  commission  of  to-day, 
it  is  quite  different  from  inferior  service.  Moreover,  it 
implies  that  the  education  of  women  should  be  very  high, 
otherwise  they  could  not  take  the  office  and  could  not 
understand  poetry.  This  principle  will  have  great  im- 
portance in  the  future. 

Fifth,  we  may  learn  that  the  absolute  independence  of 
woman  is  the  final  stage  of  the  doctrine  of  Confucius.  We 
have  already  seen  that  in  the  Great  Similarity  there  is  no 
marriage,  but  we  shall  discuss  this  more  fully  here.  The 
stage  of  Small  Tranquillity  accepts  all  the  present  institu- 
tions, but  that  of  Great  Similarity  does  not.  The  funda- 
mental difference  between  these  two  stages  is  the  independ- 
ence of  woman,  and  it  forms  the  basis  for  the  changes  from 
Small  Tranquillity  to  Great  Similarity.  Therefore,  in  the 
Small  Tranquillity,  Confucius  mentions  all  the  family  rela- 
tions, such  as  father  and  son,  brothers,  husband  and  wife. 
But,  in  the  Great  Similarity,  he  does  not  mention  them  at 
all,  and  says  that  "  men  do  not  regard  as  their  parents  only 
their  own  parents,  nor  treat  as  their  children  only  their  own 
children."  Here  Confucius  does  not  use  the  words  husband 
and  wife,  but  uses  the  words  man  and  woman.  "  Each 
man  has  his  rights,  and  each  woman  her  individuality  safe- 
guarded," are  the  two  fundamental  bases  of  Great  Similar- 
ity. But  how  can  this  be?  It  is  simply  that  they  have  to 
abolish  the  institution  of  marriage. 

What  Confucius  means  by  "  each  woman  has  her  indi- 
viduality safeguarded  "  is  that  she  is  not  the  wife  of  any 
man.     She  has  her  individual  personality,  and  in  all  things 

*  15th  year  of  Duke  Hsiian. 


ECONOMICS  AND  SOCIOLOGY 


71 


depends  upon  herself.  She  does  not  lose  any  individuality 
on  account  of  sexual  relations  to  man.  When  she  loves  a 
man,  it  is  simply  like  the  act  of  shaking  hands  or  dancing 
vi^ith  a  man,  and  she  does  not  become  the  property  of  man. 
Kang  Yu-wei,  in  the  fifth  book  of  his  Book  on  the  Great 
Similarity,^  has  given  a  very  good  explanation  of  this  prin- 
ciple. His  theory  is  something  like  this.  The  institution 
of  marriage  is  changed  to  a  legal  agreement  of  love,  and 
the  names  of  husband  and  wife  are  abolished.  Such  an 
agreement  must  be  limited  to  a  certain  length  of  time.  When 
it  expires,  the  contracting  parties  may  either  dissolve  im- 
mediately, or  renew  it  successively  until  the  end  of  their 
life,  or  dissolve  first  and  renew  it  again  in  later  times.  In 
fact,  there  is  perfect  freedom  for  them  to  do  what  they  want 
in  accordance  with  their  true  love.  The  time  limit  of  an 
agreement  is  not  longer  than  one  year,  nor  shorter  than  one 
month. 

If  the  tie  of  marriage  is  destroyed,  however,  the  func- 
tions of  the  family  must  be  handed  over  to  the  state.  There- 
fore, the  sixth  book  treats  of  the  substitution  of  the  state  for 
the  family.  In  the  Great  Similarity,  the  state  is  a  world 
republic.  .\11  the  people  are  cared  for  by  the  state.  .\s 
soon  as  a  woman  is  pregnant,  she  must  go  to  the  **  school  of 
gestatory  education  "  in  order  to  teach  the  child  before  he  is 
born.  At  the  age  of  twenty,  the  child's  education  is  com- 
pleted, and  he  is  independent  and  may  go  his  own  way.  After 
the  age  of  sixty,  he  can  live  in  the  "  house  of  old  age  "  until 
he  dies.  Indeed,  the  state  is  the  large  family  for  everybody. 
Only  in  this  way  can  woman  get  absolute  independence. 

Apart  from  the  doctrine  of  Great  Similarity  given  by 
Confucius,  the  ancient  Chinese  never  talked  of  the  abolition 

'This  book  has  not  been  pubhshed  yet,  but  Kang  Vu  wei  kindly  sent 
the  author  a  duplicate  of  the  manuscript. 


72  THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

of  marriage.  The  only  exception  to  this  was  Lieh  Tzu.  a 
philosopher  in  the  period  of  Warring  States.  He  describes 
a  Utopian  state  called  Extreme  North,  where  everything 
is  very  happy  and  pleasant.  As  to  the  social  relations,  he 
gives  the  following  four  sentences :  "  The  old  and  young 
live  equally;  there  is  no  ruler,  nor  minister.  The  men  and 
women  ramble  together;  there  is  no  matchmaker,  nor  en- 
gagement." ^  This  is  a  picture  somewhat  like  that  of  the 
Great  Similarity. 

In  conclusion,  the  position  of  woman  is  this:  funda- 
mentally woman  is  the  equal  of  man.  But,  in  the  Disor- 
derly Stage,  the  separation  of  the  two  sexes  is  advisable ;  in 
the  Advancing  Peace  Stage,  social  intercourse  between  the 
sexes  is  suitable;  in  the  Extreme  Peace  Stage,  the  absolute 
independence  of  woman  is  most  lovely  and  just.  All  these 
are  harmonious  with  the  doctrine  of  the  Three  Stages  of 
Confucius. 

iBk.  V. 


CHAPTER  VII 

Economics  and  Politics 

I.  economics  as  the  basis  of  politics 

In  order  to  understand  the  relation  between  economics 
and  politics,  let  us  take  the  "  System  of  Yao,"  the  first  book 
of  the  Canon  of  History,  written  by  Confucius  to  represent 
his  political  program.  According  to  this,  the  whole  govern- 
ment is  divided  into  nine  departments.  The  first  one  is  the 
department  of  water  and  earth,  the  interior  department  as- 
signed to  the  prime  minister;  the  second,  that  of  agriculture; 
the  third,  that  of  education;  the  fourth,  that  of  justice;  the 
fifth,  that  of  labor;  the  sixth,  that  of  natural  resources, 
charged  with  the  forests,  the  animals  and  the  mines;  the 
seventh,  that  of  religion;  the  eighth,  that  of  music;  the 
ninth,  that  of  communication,  the  mediator  between  the  em- 
peror and  the  people.  Of  the  nine  departments,  none  is 
for  personal  service  to  the  emperor,  showing  the  principle  of 
democracy,  and  none  for  the  preparation  of  war,  indicating 
the  principle  of  peace.  But  four  departments  out  of  the 
nine — the  first,  the  second,  the  fifth  and  the  sixth — are 
charged  with  economic  functions.  From  the  second  book 
of  the  Canon  of  History,  it  appears  that  the  functions  of 
commerce  are  included  in  the  first  department.^  There- 
fore, the  whole  government  is,  in  large  part,  a  tool  for  eco- 
nomic development.  Indeed,  if  there  were  no  economics, 
there  would  be  no  politics;  the  government  exists  chiefly  for 

'  See  infra. 

7.1 


74  THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

economic  reasons.     It  is  not  a  military,  but  an  industrial 

society. 

In  the  Analects,  also,  there  is  a  chapter  showing  very 
clearly  the  relation  between  economics  and  politics.  When 
Yen  Yiian,  Confucius'  best  pupil,  modestly  puts  his  ques- 
tion with  reference  to  the  government  of  a  state,  he  really 
asks  how  the  government  of  a  universal  empire  should  be 
administered.    The  answer  of  Confucius  is : 

Adopt  the  calendar  of  the  Hsia  dynasty.  Ride  in  the  state 
carriage  of  the  Yin  dynasty.  Wear  the  crown  of  the  Chou  dy- 
nasty. Imitate  the  music  of  Shao  and  Wu.  Banish  the  tunes 
of  Cheng,  and  keep  far  from  specious  talkers.  The  tunes  of 
Cheng  are  licentious  ;  specious  talkers  are  dangerous.' 

This  chapter  has  been  highly  praised  by  all  scholars  through 
all  ages,  but  none  has  understood  the  meaning  of  it.     Its 
exact  meaning  is   similar   to   that   of   the   last  chapter  of 
the  "  Great  Learning."     The  subject  of  that  chapter  is  the 
governing  of   the   state   and   the   equalizing   of   the   whole 
world,    and   there   are   only   two   ways   to   realize   such   a 
purpose,  namely,  administering  wealth  and  employing  the 
best  men.     This  chapter  has  exactly  these  two  principles. 
Keeping  far   from   specious   talkers   is  the   negative   form 
of  stating  the  principle  of  employing  the  best  men.     AH 
the  four  positive  rules  are  economic  principles.     The  cal- 
endar of  Hsia   is  most  seasonable;  to  adopt   it  means  to 
keep  the  agricultural  works  in  the  best  time.     The  carriage 
of  Yin  is  most  economical  and  lasting;  to  ride  in  it  means 
to  promote  commerce  by  means  of  economical  and  lasting 
transportation.     The  crown  of  Chou  is  most  beautiful;  to 
wear  it  means  to  raise  the  standard  of  workmanship.    These 
three  things,  calendar,  carriage  and  crown,  refer  to  agri- 

^  Classics,  vol.  i.  pp.  297-8. 


ECONOMICS  AND  POLITICS 


75 


culture,  commerce,  and  industry  respectively.  These  three 
sentences  are  more  concerned  with  the  production  of  wealth 
than  with  its  consumption,  while  the  fourth  sentence,  which 
mentions  music,  refers  to  consumption.  The  music  of  Shao 
belonging  to  Shun  and  that  of  W'u  belonging  to  Wu  Wang, 
both  are  the  best  music  of  the  ancients;  to  imitate  them 
means  to  better  the  standard  of  life  in  the  most  refined  stage, 
while  to  banish  the  tunes  of  Cheng  is  simply  to  prevent 
excess  of  pleasure.  Therefore,  Confucius  gives  Yen  Yiian 
six  rules,  four  positive  and  two  negative;  but  five  rules  out 
of  the  six  are  economic  principles.  In  fact,  the  first  way 
of  governing  either  a  state  or  a  universal  empire  is  to 
reform  economic  life,  and  the  second  way  is  to  employ  good 
men.  These  are  the  essential  meanings  of  this  chapter,  al- 
though Confucius  uses  figures  of  speech.  Unless  we  under- 
stand that  Confucius  refers  to  economic  principles,  how  can 
we  explain  how  a  calendar,  a  carriage,  and  a  crown  have 
anything  to  do  with  the  governing  of  a  state  or  a  universal 
empire?  According  to  the  old  interpretation,  the  answer  of 
Confucius  has  no  significance.  But  according  to  our  inter- 
pretation, it  means  that  the  chief  concern  of  a  government  is 
economic  life. 

Mencius  also  recognizes  that  economics  is  the  chief  object 
of  politics.  When  the  Marquis  Wen  of  Teng  asks  him 
about  the  proper  way  of  governing  a  state,  he  replies :  **  The 
business  of  the  people  should  not  be  remissly  neglected." 
What  he  means  by  the  business  of  the  people  is  their 
economic  life.  Then  he  explains  the  importance  to  the 
people  of  permanent  property  as  that  which  he  has  told 
the  King  Hsiian  of  Ch'i,^  and  his  conclusion  for  the  better- 
ment of  their  economic  condition  is  the  tsing  tiai  sys- 
tem.^    The  answer  of  Mencius  is  quite  significant.     What 

'See  infra,  ^  Classics^  vol.  ii,  pp.  239-245. 


^6  THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

the  Marquis  asks  about  is  the  business  of  the  state — politics. 
But  what  Mencius  discusses  in  his  answer  is  the  business  of 
the  people — economics.  It  seems  that  Mencius  does  not 
answer  directly  the  question  of  the  Marquis.  But  he  really 
answers  him  from  the  fundamental  point  of  view.  For  the 
business  of  the  people  is  the  chief  business  of  the  state ;  and 
if  a  ruler  can  attend  to  such  business  earnestly,  he  will 
govern  the  state  well.  In  short,  besides  economics,  there  is 
no  politics,  and  true  politics  is  economics. 

II.    POLITICS  AS  THE  PROMOTER  OF  ECONOMIC  LIFE 

While  economic  forces  form  the  basis  of  political  or- 
ganization, political  organization  in  turn  promotes  economic 
development.  Mencius  says :  "  Without  the  great  prin- 
ciples of  government  and  its  various  activities,  wealth  will 
not  be  sufficient."  ^  Therefore,  the  economic  needs  are  the 
causes  for  the  existence  of  government,  and  a  good  govern- 
ment is  also  the  cause  of  successful  economic  life. 

The  simplest  reason  for  the  economic  development  of  a 
good  government  is  given  in  the  **  Great  Commentary  " : 

When  a  ruler  attaches  importance  to  the  state,  he  loves  the 
people.  When  he  loves  the  people,  punishments  and  penal- 
ties are  just.  When  punishments  and  penalties  are  just,  the 
people  are  peaceful.  When  people  are  peaceful,  wealth  is 
sufficient.  When  wealth  is  sufficient,  all  purposes  can  be 
realized.' 

Judging  from  this  reasoning,  economic  development  is  based 
on  legal  development.  When  legal  development  comes 
to  the  stage  of  just  punishments  and  penalties,  the  people 
can  engage  peacefully  in  different  occupations,  and  the  pro- 
duction of  wealth  may  be  sufficient.     This  is  the  type  of 

'  Classics,  vol.  ii,  p.  483. 
'Az  A'7,  bk.  xiv,  p.  67. 


ECONOMICS  AND  POLITICS  jy 

patriarchal  government.  But,  even  in  the  democratic  gov- 
ernment of  modern  time,  economic  development  is  still  based 
on  legal  justice.  If  there  were  no  good  law,  there  could  not 
be  great  industries.  Therefore,  good  government  is  nec- 
essary for  economic  development,  and  politics  paves  the 
way  for  economics. 

III.    GENERAL  PRINCIPLES  OF  GOVERNMENT 

Since  politics  paves  the  way  for  economics,  we  should 
study  the  political  teachings  of  Confucius  in  order  to  under- 
stand the  background  for  his  economic  principles.     There- 
fore, we  shall  study  first  his  principles  of  government  in 
general,  and  then  his  system  of  instruction  in  particular. 
If  we  take  these  as  illustrating  Confucius'  political  views, 
we  shall  understand  the  economic  principles  in  his  mind. 
I.  Imperial  Democracy 
According  to  Confucius,  the  external  form  of  government 
is  monarchical,  but  the  fundamental  principle  of  it  is  demo- 
cratic.    The  four  parts  of  the  Canon  of  Poetry  all  begin 
with  Wen  Wang,  who  represents  the  type  of  constitutional 
monarchy.     The  Canon  of  History  begins  with  Yao  and 
Shun,  who  represent  the  type  of  republic.     The  Spring  and 
Autumn  begins  with  Wen  Wang  and  ends  with  Yao  and 
Shun.     These  are  enough  to  show  that  in  the  ideal  govern- 
ment of  Confucius  the  sovereign  power  is  in  the  hands  of 
the  people.     Of  course,  Confucius  teaches  the  people  to  be 
loyal  to  their  ruler;  but  what  he  means  by  a  ruler  is  the 
man  who  has  the  best  character  and  talents.     The  "  Great 
Learning  "  gives  a  very  gfK)d  definition  of  the  patriarchal 
government   of   Confucius.      It    says:    "Loving   what   the 
people  love,  and  hating  what  the  people  hate:  this  is  he  who 
is  called  the  parent  of  the  people."     As  soon  as  the  people 
turn  away  from  their  ruler,  he  is  no  longer  to  be  a  ruler,  but 
a   single   fellow.      If  he   is  a  bad  man,   according  to   the 


jS         THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

*'  Great  Learning,"  he  will  be  executed  by  the  people  of  the 
whole  world/  Tyrannicide  is  recognixed  as  a  great  deed 
by  all  great  Confucians,  because  they  do  not  recognize  the 
tyrant  as  a  ruler. 

Confucius  himself  has  the  revolutionary  idea;  in  the 
Canon  of  Changes,  he  gives  a  book  entitled  "  Revolution." 
He  says :  "  Heaven  and  earth  are  revolutionary,  so  that 
the  four  seasons  complete  their  functions.  The  revolutions 
of  T'ang  and  of  Wu  were  in  accordance  with  the  will  of 
God  and  in  response  to  the  wishes  of  men.  Great  indeed  is 
what  takes  place  in  a  time  of  revolution."  ^  When  Con- 
fucius reads  the  Poetry  about  the  revolution  changing  the 
Yin  dynasty  to  the  Chou  dynasty,  he  exclaims :  "  If  there 
were  no  revolution,  what  could  make  the  emperor  and 
princes  take  precaution,  and  what  could  make  the  common 
people  keep  up  their  ambition  ?"  ^  From  this  exclamation, 
we  know  that  Confucius  does  not  regard  the  king  as  sacred, 
and  that  he  gives  the  common  people  the  right  of  being 
king.  The  reason  Confucius  is  sometimes  in  favor  of  im- 
perialism or  absolute  monarchy  is  because,  for  the  time 
being,  he  wants  to  do  away  with  feudalism;  but  his  funda- 
mental idea  is  democracy. 

The  principle  of  democracy  is  most  clearly  set  forth  by 
Mencius  as  follows :  ''  The  people  are  the  most  important 
element;  the  state  is  the  next;  and  the  ruler  is  the  least. 
Therefore,  to  gain  the  mass  of  people  is  the  way  to  become 
emperor ;  to  gain  the  emperor  is  the  way  to  become  a  prince 
of  a  feudal  state;  and  to  gain  the  prince  is  the  way  to  become 
a  great  official."  *     By  this  statement,  Mencius  means  that 

'  Classics,  vol.  i,  p.  374. 
'  Vi  King,  p.  254. 
^History  of  Han,  ch.  xxxvi. 
*  Classics,  vol.  ii,  pp.  483-4. 


ECONOMICS  AND  POLITICS 


79 


the  emj)eror  should  hold  his  place  by  popular  consent,  and 
the  prince  should  be  appointed  by  the  emperor,  and  the 
great  official  by  the  prince.  Since  the  appointive  governor 
of  the  province  took  the  ])Jace  of  the  hereditary  prince  of 
the  feudal  state,  the  last  two  things  have  been  realized  in 
China;  but  the  first  never  has  been  realized,  except  in  the 
negative  form  of  revolution.  But  that  the  sovereign  power 
is  in  the  hands  of  the  people  is  the  fundamental  concept  of 
the  Confucians.^ 

2.  State  Government 

For  the  government  of  the  feudal  state,  Confucius  gives 
the  following  general  principles :  **  To  rule  a  state  of  a 
thousand  chariots,  there  must  be  reverent  attention  to  busi- 
ness, and  sincerity  to  the  people:  economy  in  expenditure, 
and  love  for  the  people ;  anxl  the  employment  of  the  people 
at  the  proper  seasons."  "  These  principles  are  the  theories 
of  Confucius'  political  economy.  Inder  such  a  govern- 
ment, the  people  are  encouraged  to  work  and  enjoy  their  oc- 
cupations, to  care  first  for  public,  and  then  for  private 
welfare. 

3.  Local  Goi'crnmcnt 

By  the  tsing  tien  system  of  Confucius,  a  village  is  a 
unit  of  political  division,  which  consists  of  eighty  families. 
In  a  village,  the  people  elect  aged  and  virtuous  men  called 
patriarchs,  and  eloquent  rjid  strong  men  called  justices. 
The  official  rank  of  the  patriarchs  is  equal  to  that  of  the 
subordinates  of  the  educational  department,  and  that  of  the 
justices  is  equal  to  that  of  the  common  people  who  are  em- 
ployed about  the  government  offices.  Both  of  them  receive 
double  shares  of  land,  and  ride  on  horseback.  They  are 
the  people  themselves:  but  at  the  same  time,  they  are  offi- 

^  Classics,  vol.  ii,  pp.  354-9.  ^ /hid.,  vol.  i,  p.  140. 


8o  THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

cials  among  the  people.  Therefore,  their  administration  is 
so  efficient  in  detail  as  to  extend  from  the  morning  to  the 
midnight,  from  the  field  to  the  town,  from  the  man  to  the 
woman,  and  from  the  physical  to  the  intellectual  and  moral 
life.  These  numerous  things  can  be  done  only  by  the  system 
of  self-government. 

4.  Freedom  of  Speech 

In  an  imperial  democracy,  the  government  is  really  ruled 
by  public  opinion,  and  the  way  to  get  public  opinion  is  by 
freedom  of  speech  in  the  form  of  poetry.  According  to  the 
tsing  Hen  system  of  Confucius,  from  the  tenth  month 
to  the  first  month,  the  people  live  in  town.  If  they 
have  any  cause  for  dissatisfaction,  men  and  women 
sing  together  to  express  their  discontent  in  the  form  of 
poetry.  Those  who  are  hungry  sing  about  their  food; 
and  those  who  are  tired,  about  their  business.  Indeed, 
their  economic  conditions  are  their  principal  subjects.  They 
have,  however,  the  absolute  freedom  of  choosing  any 
subject,  referring  either  to  themselves  or  to  the  court  and 
government.  The  principal  thing  is  the  style  in  which  the 
reproof  is  cunningly  insinuated.  The  authors  of  the  poetry 
give  no  offence,  but  the  hearers  of  it  are  warned. 

Men  at  the  age  of  sixty  and  women  at  that  of  fifty,  if 
they  have  no  children,  are  supported  by  the  government, 
and  are  appointed  commissioners  for  the  collection  of 
poetry.  In  the  first  month,  when  the  people  are  about  to 
leave  the  town  for  the  field,  the  commissioners  ring  out  the 
wooden-tongued  bell  along  the  roads  in  order  to  collect 
poetry  from  the  people.  From  the  village,  the  poetry  is 
transferred  to  the  town;  then  to  the  capital  of  the  feudal 
states;  and  at  last  it  comes  to  the  imperial  government. 
After  the  Grand  Music-master  arranges  the  poetry  accord- 
ing to  its  style  and  tune,  it  is  presented  to  the  emperor. 


ECONOMICS  AND  POLITICS  8l 

Therefore,  even  if  the  emperor  does  not  go  out  of  the  door, 
he  understands  all  the  grievances  of  the  empire;  and  even 
if  he  does  not  come  down  from  the  palace,  he  knows  about 
the  four  quarters.  Hence  poetry  forms  the  basis  of  gov- 
ernment. 

In  the  Canon  of  Poetry,  the  three  hundred  and  five  poems 
are  the  remainder  of  ancient  poetry  edited  by  Confucius. 
Their  functions  are  equal  to  those  of  newspapers ;  both  are 
the  description  of  daily  life  of  the  people  and  the  expres- 
sion of  public  opinion.  That  the  poetry  had  fulfilled  such 
functions  shows  that  there  had  been  freedom  of  speech. 

5.  Morals  v.  Law 
Under  the  tsing  ticn  system,  people  can  live  sufficiently 
well,  so  that  they  can  understand  what  is  honor  and  what 
is  dishonor.  As  their  virtue  has  been  refined,  they  become 
moderate  in  their  concern  for  wealth,  and  are  complaisant 
toward  others.  Hence,  there  is  no  dispute  nor  litigation. 
Men  are  governed  not  by  the  legal  code,  but  by  the  moral 
law.  Such  a  society  is  higher  than  the  so-called  law-gov- 
erned society,  because  there  is  self-respect  without  the  need 
of  law.  The  legal  code  must  be  limited  to  a  certain  num- 
ber of  acts,  and  the  people  may  escape  the  law  when  it  does 
not  literally  s|>ecify  the  act;  but  the  moral  law  i.*^  unlimited 
and  is  a  matter  of  spirit  rather  than  letter.  Legislation  is 
enforced  by  external  power  after  the  (\qq(\  is  done,  and  pre- 
vents only  the  Ixid  act.  while  moral  law  is  enforced  by  in- 
ternal conscience.  Not  only  does  it  prevent  the  bad  thought, 
but  it  also  makes  them  gocMJ.  Therefore  Confucius  says: 
"  In  hearing  litigations,  I  am  like  any  one  else.  What 
is  necessary,  however,  is  to  cause  the  people  to  have  no 
litigations."*     Again.  Confucius  says: 

If  the  {X'oplc  he  led  by  laws,  and  nnifonnity  be  sought  to  be 

'  Classics,  vol.  i,  p.  257. 


82  THE  ECONOMIC  PRINCIPLES  Of  CONFUCIUS 

given  them  by  punishments,  they  will  try  to  avoid  the  punish- 
ment, but  have  no  sense  of  shame.  If  thev  be  led  bv  virtue, 
and  uniformity  be  sought  to  be  given  them  by  the  rules  of  pro- 
priety, they  will  have  the  sense  of  shame,  and  moreover  will 
become  good.^ 

In  fact,  in  the  government  system  of  Confucius,  there  is 
much  legislation,  but  more  emphasis  is  laid  on  the  moral 
than  on  the  legal  side. 

IV.    SYSTEM    OF   INSTRUCTION 

The  system  of  instruction  is  the  fountain  of  democracy 
in  the  political  system  of  Confucius.     The  reason  we  use 
the  word   instruction  instead   of  education  is  because  the 
former  is  broader  in  sense  than  the  latter.     We  may  divide 
the  word  instruction  into  three  great  branches,  namely,  edu- 
cation, religion,  and  election.      They  are  all   together  the 
same  stream.     Education  is  one  source,  and  religion  is  the 
other,  while  election  is  the  flow.     In  Confucianism,  religion 
IS  really  included  in  education,  because  the  word  education 
Itself  means  intellectual  education,  w^hile  the  word  religion 
means  ethical  education.     For  the  convenience  of  our  read- 
ers, however,  we  may  put  religion  in  a  separate  section  in 
order  to  make  a  comparison  between  China  and  the  West. 
The  only  thing  w^e  should  remember  is  that  the  system  of 
mstruction  is  a  whole.    According  to  the  political  system  of 
Confucius,  the  tsing  Hen  system  and  the  instruction  sys- 
tem are  the  two  greatest  things,  and  they  must  go  together, 
although  the  former  precedes  the  latter.     Therefore,  if  we 
are  gomg  to  study  the  economic  system  of  Confucius  repre- 
sented by  tsing  Hen,  we  should  know  something  about  his 
system  of  instruction. 

I.   Universally  Free  EducaHon 
After  the  people  can  make  their  living  and  thus  satisfy 
'  Classics,  vol.  i,  p.  146. 


ECOSOMICS  ASD  POLITICS  83 

their  physical  neetls.  development  of  mind  and  character  is 
necessar)'.  Then  the  educational  system  arises.  According 
to  Confucius,  in  the  center  of  a  village  which  contains 
eight)-  families,  there  is  a  schoolhouse.  The  aged  and  virtu- 
ous men  are  elected  "  patriarchs  ".  and  are  teachers  of  the 
school;  usually,  they  come  from  the  retired  officials  of  the 
government.  Such  a  school  of  a  village  is  called  a  local 
school.  It  opens  in  the  tenth  month  when  the  agricultural 
work  has  been  finished,  and  closes  in  the  first  month,  when 
this  work  begins  again.  At  eight  years  of  age,  the  chil- 
dren begin  to  go  to  school,  and  study  reading  and  writing, 
mathematics  and  geography,  and  the  ethical  rules  of  family 
and  society-.  This  is  the  most  popular  erlucation,  and  is  the 
basis  of  all  the  higher  schools. 

There  are  different  grades  of  schools.  The  local  school 
of  the  village  is  the  lowest  grade.  Then  come  successively 
the  district  school,  the  provincial  college,  and  the  national 
university-.  The  highest  one  is  the  imperial  university.  The 
local  school  is  in  everv'  village:  the  district  school,  in  every 
district:  the  provincial  college,  in  every  province:  the  na- 
tional university,  in  e\'er\-  capital  city  of  ever\'  feudal  state ; 
and  the  imperial  university,  in  the  imperial  capital.^  Thus 
educational  institutions  e.xist  over  the  whole  empire.  They 
are  all  public  schools  and  are  maintainetl  by  the  different 
governments:  hence  the>-  are  all  free.  The  school  system 
was  an  actual  system  of  the  ancients,  although  it  may  not 
have  been  so  complete  as  the  Confucians  prescribe.  In  an- 
cient times,  the  different  institutions  were  used  not  only  as 
schools,  but  also  as  churches,  and  for  political  meetings. 
social  gatherings,  and  e\en  militarv*  councils.* 

Regarding  the  training  of  the  different  schools,  all  those 
below  the  imperial  university  are  called  small  learning;  the 

^  Li  fCi.  bk.  xTi,  p.  %y  */i/tu.,  bk.  iii.  p.  220. 


84  THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

latter  is  called  great  learning.  The  lowest  age  for  the  great 
learning  is  fifteen,  and  the  highest  is  twenty.  The  subjects 
of  study  are  the  different  civilizations  of  the  ancients  and 
the  social  and  political  institutions  of  the  present.  The 
"  Record  of  Education  "  says : 

Every  year  new  students  may  enter  the  imperial  university, 
and  every  alternate  year  there  is  a  comparative  examination. 
At  the  end  of  the  first  year,  the  examination  is  to  see  whether 
they  can  read  the  texts  intelligently,  and  what  the  individual 
taste  of  each  is ;  in  the  third  year,  whether  they  are  reverently 
attentive  to  their  work,  and  what  companionship  is  most 
pleasant  to  them ;  in  the  fifth  year,  how  they  extend  their 
studies  and  seek  the  company  of  their  teachers  ;  in  the  seventh 
year,  how  they  can  discuss  the  subjects  of  their  studies  and 
select  their  friends.  They  are  now  said  to  have  made  some 
small  accomplishments.  In  the  ninth  year,  when  they  know 
the  different  relative  subjects  and  have  gained  general  in- 
telligence, establishing  themselves  firmly  so  that  they  cannot 
be  moved,  they  are  said  to  have  made  some  great  accom- 
plishments.' 

In  every  one  of  these  five  examinations,  the  students  are 
examined  from  two  points  of  view :  one  is  knowledge,  and 
the  other  is  character.  To  balance  mental  and  moral  train- 
ing is  the  Chinese  system  of  education,  handed  down  from 
Confucius.  In  fact,  the  educational  system  of  Confucius 
has  been  partially  carried  out  in  different  periods. 

2.  Social  Religion  and  Freedom  of  Belief 

In  the  Chinese  language,  the  word  religion  is  not  ex- 
actly the  same  as  in  English.  The  Chinese  word  chiao 
means  instruction;  hence  it  stands  for  education  as  well  as 
for  religion.  But  the  word  chiao  in  the  religious  sense 
of  the  Chinese  means  moral   teachings ;   sometimes   it   in- 

^  Li  fit,  bk.  xvi,  pp.  83-4. 


ECONOMICS  AND  POLITICS  85 

eludes  even  ihe  whole  of  civilization.  Therefore,  what  the 
Chinese  call  religion  is  moral,  social  and  philosophical  rather 
than  spiritual.  As  the  word  chiao  means  both  education 
and  religion,  an  educational  institution  is  a  church  as  well 
as  a  school.  According  to  Mencius,  the  object  of  all  the 
schools  of  the  Three  Dynasties  is  to  illustrate  the  human 
relations.^  Even  in  the  present  day,  in  the  Confucian 
Churches  over  the  whole  empire,  there  is  a  hall  called  '*  II- 
lustrating-Human-Relations  Hall  " ;  and  the  Chinese  call 
the  Confucian  Church  by  the  name  of  Holy  Temple,  or 
Civil  Temple,  or  School  House.  This  is  the  reason  why 
under  the  tsing  ticn  system  there  is  no  church,  because  the 
religious  function  is  absorbed  by  education.  The  patriarchs, 
although  the  teachers  of  the  school,  are  like  the  pastors  or 
fathers  of  the  church.  But  what  are  the  subjects  of  their 
sermons?  According  to  Mencius,  the  most  important  teach- 
ings of  the  schools  are  the  filial  and  fraternal  duties:  and 
their  results  are  that  the  gray-haired  men  do  not  need  to 
carry  any  burdens  on  their  backs  or  on  their  heads  along  the 
roads.  ^  Therefore,  we  can  see  that  the  Chinese  religion 
has  been  directed  toward  man  more  than  toward  God.  In- 
deed, the  religion  of  Confucius  is  based  on  sociology  rather 
than  on  theology.  Hence,  China  has  given  full  freedom  of 
belief  to  the  people,  since  spiritual  worship  has  not  been 
the  essential  of  the  Chinese  religion. 

In  modern  times,  there  is  a  conflict  between  religion 
and  science,  but  this  can  never  be  the  case  in  Confucianism. 
Confucianism  is  based  on  scientific  principles.  When  Con- 
fucius teaches  Tzu-lu  what  knowledge  is.  he  says:  '*  When 
you  know  a  thing,  to  hold  that  you  know  it:  and  when  you 
do  not  know  a  thing,  to  allow  that  you  do  not  know  it — this 
is  knowledge."  ^    In  the  Sprini^  and  Autumn,  "  to  leave  out 

^Classics,  vol.  ii.  p.  242.  ^/bid.,  vol.  ii,  pp.  131-2. 

^ Ibid.,  vol.  i,  p.  151. 


86         THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

the  doubtful  points  ''  is  a  great  principle.  With  such  a 
scientilic  nature,  Confucianism  differs  from  all  other  re- 
ligions, and  is  a  religon  of  the  highest  type.  On  this  ac- 
count, the  Chinese  can  identify  religion  with  education,  and 
church  with  school;  and  there  will  never  be  any  conflict 
between  science  and  Confucianism,  because  Confucianism 
itself  is  also  a  science. 

In  modern  times,  there  is  also  a  conflict  between  religion 
and   politics,   but   this    is    not   the    case   in   Confucianism. 
The  Roman  Catholics  have  a  pope  who  assumes  political 
power  as  an  emperor,  and  the  ecclesiastical  body  forms  a 
specially-favored   class  exercising   political  privileges   over 
and  against  the  common  people.     This  is  an  unnatural  and 
unjust  thing.     Therefore,  conflict  between  church  and  state 
arises,    and    European    and    American    statesmen    separate 
church  from  state.     How  is  this  in  the  religion  of  Con- 
fucius ?    He  did  not  choose  a  special  successor,  and  no  one 
dared  to  call  himself  the  only  successor  of  Confucius.     In 
fact,   Confucianism  is   a  democratic  religion,   and   has  no 
such  monarchical  idea.     Confucius  did  not  distinguish  his 
followers  from  the  common  people,  and  they  never  formed 
such  a  special  class  as  the  priesthood.     Therefore,  the  Con- 
fucians never  got  political  privileges.     Although  the  stu- 
dent class  always  has  more  access  to  the  government  than 
the  common  people,  it  is  through  educational  qualifications, 
and  not  through  religious  privilege.     Therefore,  since  the 
Confucians   have   never   taken    any   political    power    from 
the  state,  the  state  has  no  trouble  with  the  Confucian  re- 
ligion at  all,  and  there  is  no  need  to  separate  it  from  the 
state. 

Moreover,  Christianity  is  a  simple  religion,  and  has  noth- 
ing to  do  with  government ;  hence  it  can  be  separated  from 
the  state.  But  Confucianism  is  a  complex  religion,  and  has 
ver\'   mi'.ch    to   do   with    government;    hence    it   can   never 


ECONOMICS  AND  POLITICS  87 

be  separated  from  the  state.  The  missionary  work  of  Con- 
fucius himself  was  mostly  in  court ;  he  taught  the  people  not 
on  the  subject  of  theology,  but  on  that  of  social  relations; 
he  taught  his  pupils  not  in  order  to  make  priests  of  them, 
but  to  make  them  statesmen  and  teachers.  His  teachings 
are  at  least  half  on  political  subjects;  and  the  whole  Chinese 
society  is  built  up  under  his  teachings,  although  not  under 
the  best  of  them,  and  even  opposing  some  of  them.  In 
a  word,  China  never  can  separate  Confucianism  from  the 
state,  unless  she  would  destroy  her  whole  civilization.  It 
is  not  only  unwise  and  unnecessary,  but  also  impossible. 
This  is  the  main  characteristic  of  the  relisfion  of  Confucius. 

4.  Educational  Election  as  a   System   of   Popular  Repre- 
sentation 

As  regards  politics,  Confucius  lays  much  stress  on  the 
power  of  man.     He  says : 

The  principles  of  the  government  of  Wen  and  Wu  are  always 
displayed  in  the  records — the  tablets  of  wood  and  bamboo. 
But,  when  there  are  the  right  men,  such  a  government  flour- 
ishes ;  while  without  such  men,  such  a  government  decays  and 
ceases.  With  a  g^ood  quality  of  men,  the  g^rowth  of  govern- 
ment is  rapid,  just  as  veg^etation  is  rapid  in  land  of  g^ood 
quality.  Thus  a  government  is  like  an  easily-growing  rush. 
Therefore,  the  administration  of  g^overnnicnt  depends  upon 
man.' 

Having  such  a  theory  of  government,  Confucius  thinks 
that  to  get  good  men  is  the  fundamental  thing  for  a  good 
government.  But  how  shall  we  get  them?  By  the  system 
of  educational  election. 

According  to  Confucius,  the  school  is  not  only  a  system 
of  education,  but  also  a  system  of  election ;  hence,  it  com- 
bines   politics    with    education.      His    political    doctrine    is 

^Classics,  vol.  i,  p.  405. 


88  'i^tlE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

democratic,  and  no  aristocracy  is  allowed.  The  Record  of 
Rites  says:  ''Even  the  eldest  son  of  the  emperor  by  his 
legitimate  queen  is  only  as  an  ordinary  student.  In  the 
world,  there  is  nowhere  such  a  thing  as  being  born  noble."  ^ 
In  the  Spring  and  Autumn^  Confucius  denies  the  hereditary 
right  of  aristocracy,  and  gives  educational  election  as  a  sub- 
stitute." This  was  at  that  time  a  revolutionary  idea  in 
social  life;  it  was  realized  by  the  recommendation  of 
Tung  Chung-shu  (412  A.  K.  or  140  B.  C).  According 
to  the  ''  Royal  Regulations,"  the  sons  of  the  emperor,  the 
princes,  and  the  officials,  are  to  study  at  the  same  university 
with  the  students  chosen  from  among  the  common  people; 
and  their  classes  are  to  be  divided  up,  not  by  ranks,  but  by 
ages.^  Hsun  Tzu  says :  "  Even  among  the  sons  of  the  em- 
peror, the  princes,  and  the  great  officials,  if  they  were  not 
qualified  to  rites  and  justice,  they  should  be  put  down  to  the 
class  of  common  people;  even  among  the  sons  of  common 
people,  if  they  have  good  education  and  character  and  are 
qualified  to  rites  and  justice,  they  should  be  elevated  to  the 
class  of  ministers  and  nobles."  *  In  short,  under  the  sys- 
tem of  Confucius,  there  is  no  distinction  of  classes ;  and  edu- 
cation is  the  only  determining  force  in  social  standing.  We 
may  say  that  there  is  an  educational  aristocracy,  but  such 
an  aristocracy  is  unavoidable,  unless  human  characteristics 
be  equal  by  birth.  The  only  thing  that  human  power  can 
do  is  to  make  education  universal  and  free,  in  order  to  give 
everyone  equal  opportunity ;  and  this  is  the  way  of  Con- 
fucius. 

The  way  Confucius  combines  politics  with  education  is 
something  like  this:  the  best  students  of  the  local  school  are 
elected  and  transferred  to  the  district  school ;  the  best  of  the 

'Li  Ai,  bk.  ix,  p.  438.  »Third  year  of  Duke  Yin. 

'Z,7  /('i,  bk.  iii,  p.  233.  *Bk.  ix. 


ECONOMICS  AND  POLITICS  89 

district  school,  to  the  provincial  college;  and  the  best  of  the 
provincial  college,  to  the  national  university.  Every  three 
years,  the  feudal  princes  send  the  best  students  from  their 
national  universities  to  the  emperor,  and  let  them  study  at 
the  imperial  university.  The  best  students  of  the  imperial 
university  are  called  ''complete  scholars  ".  If  their  conduct 
and  capability  are  equal,  they  are  distinguished  by  archery. 
Then  titles  are  conferred  upon  them.  In  this  way,  the  stu- 
dents promote  themselves  by  their  capability;  and  the  em- 
peror appoints  the  officials  by  the  examination  of  their 
merit. ^     This  sytem  may  be  called  educational  election. 

Thii  system  of  educational  election  may  also  be  called  a 
system  of  representation.  Since  the  students  elected  from 
the  common  people  become  high  officials,  the  different  in- 
stitutions are  really  the  places  where  the  representatives 
of  the  people  are  elected.  As  the  elections  are  held  in  schools 
and  the  representatives  are  confined  to  the  body  of  students, 
education  is  the  exclusive  qualification.  The  educational  test 
takes  the  place  of  universal  suffrage.  But  choosing  educa- 
tion as  a  qualification  is  much  better  than  choosing  anything 
else,  especially  when  education  is  universally  free.  Al- 
though there  is  no  popular  vote,  this  should  not  be  far  from 
popular  sentiment,  becau.se  tho.se  chosen  are  the  best  stu- 
dents. Since  they  come  from  different  political  divisions, 
although  there  is  no  legal  responsibility  between  them  and 
their  native  localities,  they  should  be  regarded  as  the  repre- 
sentatives of  the  people  as  a  whole.  The  Great  Commentary 
of  the  Canon  of  History  "  sj^aks  thus  of  the  election  of 
students.  "  It  lets  the  wise  men  have  their  way  to  come  up, 
and   co-operate   with    their    ruler    in    the   government.      It 

^  Anrtoiation  of  Kuui^-yans^,  15th  year  of  Duke  Hsuan.  etc. 

'Written  by  Professor  Fii  of  the  Ch'in  dynasty,  the  oldest  and  great- 
tst  authority  on  the  Canon  of  History. 


QO  THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

shows  that  a  ruler  alone  should  not  control  the  government. 
This  is  the  way  to  give  the  greatest  importance  to  the 
people." 

What  we  have  mentioned  is  the  ideal  system  of  Con- 
fucius, and  it  has  been  essentially  carried  into  effect.  But 
the  system  of  representation  was  also  a  fact  of  the  ancients, 
although  it  may  not  have  been  so  perfect  as  the  Confucians 
describe.  The  Official  System  of  Chou  says :  "  Let  the  peo- 
ple elect  the  virtuous  to  be  their  leaders  outside,  and  let 
them  also  elect  the  able  to  be  their  governors  inside."  ^ 
'*  Outside  "  means  the  central  government  out  of  their  pro- 
vince, and  "  inside  "  means  the  local  government,  the  word 
leaders  meaning  representatives.  In  ancient  times,  the  stu- 
dents were  at  the  same  time  the  farmers,  so  that  the  farmers 
could  easily  elect  the  students  among  themselves.  The 
Canon  of  Poetry  tells  how  the  prince  goes  to  the  field  to  pre- 
side over  the  election :  "  Now,  I  go  to  the  south-lying  acres, 
where  some  are  weeding  and  some  gather  the  earth  about 
the  roots.  The  millets  look  luxuriant.  And  in  a  spacious 
resting  place,  we  elect  our  eminent  students."  ^  From  this 
poem,  we  can  understand  that  the  farmers,  outside  of  the 
school,  still  had  the  right  to  choose  their  representatives,  al- 
though the  election  was  controlled  by  the  government. 

Historically,  the  system  of  representation  was  changed 
from  election  by  the  people  into  selection  by  the  govern- 
ment, that  is,  civil-service  competitive  examinations.  Even 
by  this  change,  the  graduates  who  passed  examinations 
still  had  the  qualifications  of  representatives,  because  the 
number  of  graduates  was  proportionate  to  the  population 
and  the  amount  of  taxation  of  their  native  province.  So 
China  had  the  representative  system.  But  the  great 
trouble   was   that   China   did  not  develop   a  legal   organi- 

'  Ch.  xii.  ^Classics,  vol.  iv,  pt.  ii,  p.  ;i77. 


ECONOMICS  AND  POLITICS 


91 


zation  of  the  representative  body  to  assume  the  sovereign 
power.  In  ancient  times,  although  there  was  a  popular 
council  of  the  people  in  the  central  government/  it  had  not 
been  legally  well  organized.  And  so  those  representatives 
were  only  the  advisors  of  the  ruler. 

According  to  the  ideal  of  Confucius,  before  the  officials 
take  office,  there  is  an  educational  election;  and  after  they 
come  to  office,  there  is  also  an  examination  of  merit  every 
three  years.  Hence,  there  can  be  no  corruption.  The  ex- 
amination is  based  entirely  on  the  economic  conditions  of 
the  people.  After  three  examinations,  officials  are  either  de- 
graded or  promoted  according  to  the  value  of  their  service 
to  the  people.  They  are  required  to  have  such  conditions 
that  not  only  is  capital  increased,  but  also  labor  is  improved. 
In  short,  economic  prosperity  is  the  only  test  of  a  good  gov- 
ernment, and  it  is  the  chief  task  of  the  officials  who  are  sub- 
jected to  the  examination  of  merit.  Ho  Hsiu  says :  ''  The 
wise  ruler  gives  reward  to  the  officials  according  to  their 
obvious  service,  so  that  the  undeserving  cannot  be  pro- 
moted by  popular  praise;  and  gives  punishment  to  them  ac- 
cording to  their  obvious  guilt,  so  that  the  innocent  cannot 
be  dismissed  by  popular  slander.''  "  This  principle  has 
been  put  into  actual  law. 

In  conclusion,  the  word  representatives  includes  all  the 
officials  of  the  government.  .Although  there  are  three 
powers — legislative,  administrative  and  judicial — they  are 
not  sharply  divided  into  distinct  branches.  Therefore,  the 
representatives  of  the  people,  the  students,  may  take  office 
in  any  branch  of  the  government,  not  being  confined  to 
legislative  power  only. 

'  Cf.  Classics,  vol.  iii,  pt.  i.  pp.  41,  224.  233-4.  F.  Hirth's  The  An- 
cient History  of  China,  p.  124.     Kuan  Tsu,  bk.  Ivi. 

'Third  year  of  Duke  Yin. 


92 


THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 


Under  the  influence  of  Confucius,  the  Chinese  govern- 
ment has  been  that  of  imperial  democracy,  and  everyone 
has  the  chance  to  be  prime  minister,  although  it  is  not  nec- 
essary that  everyone  should  have  the  ambition  to  be  em- 
peror. In  China,  "  linen  prime  minister  "  and  "  v^hite  house 
duke  and  minister  "  have  become  popular  terms.  "  Linen  " 
and  "  white  house  "  indicate  the  poor  conditions  from  w^hich 
they  arise  to  the  highest  office.  Indeed,  China  has  been  the 
most  democratic  country  of  the  world  in  this  point.  Even 
in  the  United  States,  a  republican  government,  it  is  diffi- 
cult for  one  to  hold  an  elective  public  office,  no  matter  how 
high  or  how  low,  unless  he  is  an  active  member  of  one  of  the 
two  great  parties.  This  means  that  many  good  men  are 
excluded  from  the  government,  and  it  tends  to  make  men 
lose  their  personality,  and  to  deny  them  the  opportunity 
for  showing  their  political  ability  in  rendering  public  ser- 
vice. Although  the  form  of  the  American  government  is 
republican,  it  is  very  tyrannical  in  this  respect;  or  at  least 
it  is  something  of  an  aristocracy.  How  much  worse  are  the 
monarchical  governments  of  the  world!  All  the  modern 
European  countries  and  Japan  are  only  now  doing  away 
with  aristocracy;  and  in  most  of  them  the  nobility  is 
still  a  great  element  in  their  government.  But  China  had 
largely  destroyed  the  nobility  with  the  election  system  of 
the  Han  dynasty  (418  A.  K.  or  134  B.  C),  and  has  ex- 
tinguished it  entirely  since  the  Chin  Shih  examination  of 
the  Sui  dynasty  ( 1 157  A.  K.  or  606  A.  D.).  In  the  present 
day,  all  the  titles  of  nobility  are  merely  nominal  honors,  and 
have  no  political  power  whatever  attached  to  them.  The 
only  material  gain  they  bring  is  the  hereditary  salary  re- 
ceiver! in  the  form  of  pension.  Even  the  members  of  the 
imperial  family  have  no  political  power,  unless  they  are  offi- 
cials. Any  student,  poor  in  the  economic  sense,  studying 
quietly  and  even  laboring  hard,  may  expect  to  become  prime 


ECONOMICS  AND  POLITICS  93 

minister  and  carry  out  his  principles.  He  does  not  need 
to  spend  his  time,  energy  and  money  in  self-advertisement. 

If  the  ruler  should  always  be  as  good  as  Confucius  re- 
quires, the  system  of  educational  election  would  be  perfect. 
But,  since  the  ruler  is  not  always  good,  and  the  world  has 
been  progressive,  China  is  going  to  change  her  absolute 
to  a  constitutional  government.  As  soon  as  she  shall  have 
a  constitutional  government,  she  will  have  a  party  govern- 
ment. And  as  soon  as  sliC  has  a  party  government,  she 
will  have  party  elections,  and  modern  aristocracy  will  grow 
in  China.  But,  as  the  educational  election  is  a  system 
peculiar  to  the  Chinese,  they  should  keep  the  best  of  their 
own,  and  adopt  only  the  best  of  their  neighbors'  systems, 
without  their  defects.  By  extending  the  principle  of  popular 
suffrage  to  just  the  right  point,  China  will  have  a  govern- 
mental system  which  surpasses  the  most  sanguine  hopes  of 
American  civil  service  reformers. 

The  election  system  of  Confucius  is  the  chief  weapon  for 
the  destruction  of  class  interests.  This  was  appreciated  by 
the  physiocrats.  They  hold  up  as  the  ideal  of  political  gov- 
ernment, not  Switzerland  or  England,  but  China, ^  because 
in  other  countries  one  did  not  find  individual  interest  com- 
ing to  the  front.  In  England  the  political  system  gives 
too  much  power  to  the  merchants;  on  the  other  hand,  de- 
mocracy gives  too  much  power  to  the  lower  classes,  and 
aristocracy,  too  much  power  to  the  higher  classes.  In 
China  alone  no  one  class  tends  to  become  dominant.  This 
view  of  the  physiocrats  is  very  true.  It  is  tloubtlcss  true 
that  Quesnay  was  theorizing,  and  used  China  as  a  model 
because  it  was  far  away  and  he  knew  little  about  it,  but  in 
this  instance  his  theory  was  justified  by  the  facts. 

^Cf.  Quesnay's  Despotisvie  de  la  Chine,  first  published  in  the  Ephk- 
fniridfs  du  Citoyen  in  1767  and  reprinted  in  Oeuvres  Econoviiques  et 
Philosnphigurs  de  Quesnay,  cd.  Oncken,  1888,  pp.  563  660. 


CHAPTER  VIII 

Economics  and  Ethics 
I.  economics  as  the  basis  of  ethics 

In  the  Confucian  system,  there  are  two  great  principles. 
One  is  called  love,  or  humanity;  the  other,  justice,  or  right- 
eousness. It  may  be  interesting  to  notice  that,  according 
to  the  Chinese  etymology,  the  word  love  is  formed  from 
the  word  denoting  man,  or  others,  and  the  word  justice 
from  the  word  denoting  self.  Thus  the  primary  meaning 
of  the  word  love  is  a  relation  between  persons;  and  that 
of  the  word  justice  is  an  aspect  of  the  self.  We  love  others, 
but  we  justify  ourselves.  Hence  we  should  strictly  control 
ourselves,  according  to  the  highest  standard  of  morality,  and 
treat  others  liberally,  according  to  the  ordinary  level  of 
human  nature.  Confucius  says :  "  The  superior  man  rea- 
sons about  theoretical  principles  from  the  standpoint  of 
himself,  but  lays  down  practical  laws  from  the  capabilities 
of  the  people."  ^  Therefore,  regarding  ourselves,  Con- 
fucius puts  ethical  teaching  above  economic  life, — in  some 
cases,  life  itself  should  be  sacrificed  for  the  sake  of  virtue; 
but  regarding  society  as  a  whole,  he  puts  economic  life  be- 
fore ethical  teaching. 

The  best  illustration  of  this  principle  is  given  in  the 
Analects.  When  Confucius  went  to  Wei,  Jan  Yu  acted  as 
driver  of  his  carriage.  Confucius  observed,  "  How  numer- 
ous are  the  people!"     Jan  said,  ''  Since  they  are  thus  nu- 

'  Li  Ki,  bk.  xxix,  p.  ;^^^. 


ECONOMICS  ASD  ETHICS  95 

nierous,  what  more  shall  be  done  for  them?"  ''  Enrich 
them,"  was  the  reply.  ''And  when  they  have  been  en- 
riched, what  more  shall  be  done?"  Confucius  said,  ''In- 
struct them  ".^ 

Before  we  can  instruct  the  people,  we  must  enrich  them,  ^ 
no  matter  how  few^  or  many  they  are.     This  is  a  universal 
principle.     The  Canon   of  Poetry   repeats  three  times   the 
following  two  sentences:  ''  Give  them  drink  and  give  them 
food.     Instruct  them  and  teach  them."  * 

If  we  understand  in  the  beginning  that  Confucius  gives 
two  principles  for  the  two  classes  of  men,  one  for  the  offi- 
cials and  students,  the  other  for  the  mass  of  common  people 
at  large,  we  shall  avoid  confusion.  For  the  higher  class, 
ethical  life  is  first,  but  for  the  lower  class,  economic  life  is 
first.  Confucius  says:  "The  mind  of  great  men  is  con- 
versant  with  justice:  the  mind  of  small  men  is  conversant 
with  profit."  ^  In  speaking  of  great  men  and  small  men, 
he  reiers  to  their  social  standing.  This  theor}-  is  very 
clearly  stated  by  Tung  Chung-shu  when  he  says :  '*  Busily 
seeking  for  wealth  and  profit,  and  fearing  only  the  condition 
of  want,  this  is  the  mind  of  common  people:  busily  seeking 
for  love  and  iustice,  and  fearing  always  that  they  could 
not  influence  the  people,  this  is  the  mind  of  ministers  and 
great  r)fficials."  "•  Such  a  statement,  of  course,  is  only  a 
theory,  not  fact.  \t\.  we  must  understand  that  Confucius 
has  these  two  classes  in  his  mind,  and  sets  forth  two  dif- 
ferent principles  for  them.  On  the  one  hand,  he  forbids  the 
higher  class,  from  emperor  to  student,  to  seek  private  gain. 
They  should  confine  themselves  to  the  ethical  life.     On  the 

'  Classics,  vol.  i,  pp.  266-7. 

*  Classics,  vol.  iv,  pt.  ii,  pp.  418-420. 

*  Classics,  vol.  i,  p.   170. 

*  History  of  Ilatt.  ch.  Ivi. 


96 


THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 


Other  hand,  he  allows  the  lower  class  to  make  profit,  and 
thinks  that  they  ought  to  do  so.  Hence,  for  the  governing 
of  society,  Confucius  takes  up  the  economic  life  of  the  people 
JT^  for  the  first  consideration.  The  "  Great  Learning  "  describes 
the  effects  of  a  good  government  as  follows :  "  The  com- 
mon people  find  pleasure  in  what  they  call  their  pleasure, 
and  find  profit  in  what  they  call  their  profit."  ^  We  are  sure 
that  Confucius,  in  the  program  of  his  reformation,  feels 
that  economic  bettennent  is  the  first  item." 

Unfortunately,  since  the  Confucians  of  the  Sung  dynasty 
did  not  wholly  understand  the  principles  of  Confucius  and 
thought  that  he  did  not  approve  even  talking  about  profits, 
the  teachings  of  Confucius  failed  to  be  considered  of  great 
importance  in  the  practical  world,  and  the  Chinese  suffered 
a  great  deal  through  need  of  economic  reforms.  They  made 
such  a  great  mistake  because  they  misunderstood  the  state- 
ments of  Mencius  and  Tung  Chung-shu.  Mencius  tells  the 
King  Hui  of  Liang:  "Why  must  your  Majesty  use  that 
word  profit?  What  I  am  provided  with  are  counsels  con- 
cerning the  principles  of  love  and  justice,  and  these  are  my 
only  topics."  ^  Tung  Chung-shu  tells  the  Prince  of  Kiang- 
tu :  "  The  man  of  perfect  virtue  is  thus :  following  strictly 
justice,  not  for  the  sake  of  profit ;  discussing  thoroughly 
principle,  not  with  the  expectation  of  success."  *  This  sim- 
ply means  virtue  for  virtue's  sake.  These  two  statements 
given  by  Mencius  and  Tung  Chung-shu  are  quite  good  in 
themselves,  but  they  do  not  mean  that  the  economic  problems 
should  be  entirely  left  out.  They  have  their  own  writings, 
and  we  can  find  their  economic  principles  even  from  the 

*  Classics,  vol.  i,  p.  364. 
'  Classics,  vol.  ii,  p.  131. 
'  Classics,  vol.  ii,  p.  126. 

*  History  of  Han,  ch.  Ivi. 


ECOXOMICS  A.\D  ETHICS 


97 


quotations  of  this  treatise.  They  are  talking  to  the  king 
and  the  prince,  and  such  men,  of  course,  are  forbidden  by 
Confucius  to  talk  about  profits.  We  never  expect  to  use 
the  same  prescription  for  everybody ;  why  should  we  apply 
those  statements  to  every  one?  Neither  Confucius,  nor 
Mencius,  nor  Tung  Chung-shu,  nor  any  great  Confucian  be- 
fore the  Sung  dynasty,  has  ever  said  that  the  common  people 
should  not  talk  about  profits.  Moreover,  the  Confucians 
of  the  Sung  dynasty  did  not  distinguish  the  public  profits 
from  private  profits,  and  left  them  both  out  of  consideration. 
This  has  been  a  great  obstacle  to  the  economic  development 
of  China. 

II.     HARMONY   OF   ECONOMICS   AND    KTIIICS 

The  reason  the  Confucians  of  the  Sung  dynasty  fear  to 
talk  about  profit  is  because  they  make  the  distinction  teween 
profit  and  justice  too  sharp,  and  think  they  are  necessarily 
opposed  to  each  other.     But  true  Confucianism  harmonizes 


economics  and  ethics,  and  identihes  profit  with  justice^  A 
true  profit,  it  holds,  is  justice,  and  the  immediate  profit 
which  opposes  justice  is.  in  the  long  run,  not  a  profit  at  all. 
The  essential  of  these  two  words,  profit  and  justice,  is  the 
same  thing,  but  expressed  in  different  terms. 

As  Confucius  lived  in  the  stage  of  feudalism,  and  gener- 
ally talked  with  princes,  he  did  not  like  to  mention  the  word 
profit,  but  used  the  word  justice  for  its  substitute.  Since 
princes,  as  we  know,  generally  care  for  profit,  but  not  for 
justice;  for  wealth,  but  not  for  virtue:  why  should  Confucius 
talk  to  them  about  profit  instead  of  about  justice?  But,  if 
Confucius  only  says  to  them  that  justice  is  good,  and  does 
not  say  that  justice  is  a  profit,  they  will  not  believe  him,  and 
will  not  j)ractice  justice.  Therefore.  Confucius  points  out 
very  clearly  that  justice  is  a  real  profit,  and  that  toj^MVr, 
the  iminc'liatc  profit  is  onlv  a  suici.lal  policy. 

This  principle  is  thus  set  forth  in  the  "  Great  Learning  "  : 


98 


THE  ECOXOMIC  PRINCIPLES  OF  CONFUCIUS 


The  superior  man  will  first  take  pains  about  his  own  virtue. 
....  Virtue  is  the  root,  and  wealth  only  the  result.     If  he 
make  the  root  his  secondary  object,  and  the  result  his  primary, 
y         he  will  only  wrangle  with  his  people,  and  teach  them  rapine. 
/     Hence,  the  concentration  of  wealth  is  the  cause  of  driving  the 
/      people  away,  and  the  diffusion  of  it  among  them  is  the  way 
V     to  collect  the  people.     And  hence,  .  .  .  the  wealth,  got  by  im- 
proper ways,  will   take  its  departure  by  the  same.  .  .  .  The 
virtuous  man,  by  means  of  his  wealth,  makes  his  personality 
more  distinguished.     The  vicious  man  accumulates  wealth  at 
the  expense  of  his  life.     Never  has  there  been  a  case  of  the 
sovereign  liking  love,  and  the  people  not  liking  justice.     Never 
has  there  been  a  case  where  the  people  have  liked  justice,  and 
the  affairs  of  the  sovereign   have  not  been  carried  to  com- 
pletion.    And  never  has  there  been  a  case  where  the  wealth 
in  such  a  state,  collected  in  the  treasuries  and  arsenals,  did 
not  continue  in  the  sovereign's  possession. 

For  the  explanation  that  the  real  profit  of  a  sjtpl^^  i.^  tirji^ 
'  Pecuniary  profit,  but  justice,  it  quotes  from  Meng  Hsien-tsu : 

Jt  is  better  to  have  an  officer  v^ho  steals,  than  to  have  one 
who  collects  unjust  imposts  from  the  people."     Indeed,  los- 
ing wealth  is  better  than  losing  justice. 
The  conclusion  of  the  "  Great  Learning  "  is  this : 

When  he  who  presides  over  a  state  or  a  family  makes  wealth 
his  chief  business,  he  must  be  under  the  influence  of  some 
mean  fellow.  He  may  consider  this  fellow  good ;  but  when 
such  a  person  is  employed  in  the  administration  of  a  state  or 
family,  calamities  from  nature  and  injuries  from  men  will 
befall  it  together.  And,  although  a  good  man  may  take  his 
place,  he  will  not  be  able  to  remedy  the  evil.  This  illustrates 
the  saying,  that  a  state  does  not  take  the  pecuniary  profit  as  a 
real  profit,  but  takes  justice  as  a  real  profit.^ 

•4 

The  same  principle  is  also  given  by  Mencius.     When  he 

'  Classics,  vol.  i,  pp.  375-381. 


ECONOMICS  AND  ETHICS 


99 


meets  King  Hui  of  Liang,  he  first  rejects  the  word  profit, 
which  is  mentioned  by  the  king,  and  supplies  the  two  words 
love  and  justice.  Then  he  points  out  that  profit  in  the  com- 
mon sense  is  not  a  profit.  If  the  king,  the  great  officials, 
the  students  and  the  common  people,  all  try  to  snatch  this 
profit  the  one  from  the  other,  the  state  will  be  endangered. 
He  says:  "If  justice  be  put  last,  and  profit  be  put  first, 
they  w^ill  not  be  satisfied  without  snatching  all." 

Now\  he  turns  to  the  real  profit  of  love  and  justice,  and 
says :  *'  There  never  has  been  a  man  who  practiced  the  prin- 
ciple of  love  and  neglected  his  parents.  There  never  has 
been  a  man  who  practiced  the  principle  of  justice  and  made 
his  sovereign  an  after-consideration.^ 

What  has  been  said  in  the  ''  Great  Learning  "  and  by  Men- 
cius  is  for  princes  or  for  the  government.  But  the  principle 
that  justice  is  a  profit  holds  true  among  all  mankind.  The 
Chinese  take  this  principle  as  the  fundamental  law  of  econo- 
mics, and  carr\'  it  into  practice  in  daily  life.  This  is  why 
the  Chinese  merchants  have  the  highest  moral  standard. 
Indeed.  **  honesty  is  the  best  policy."  If  justice  is  not  a 
profit,  the  morality  of  man  would  be  as  low  as  that  of  the 
beast.  But  to-day.  as  human  progress  has  risen  to  the 
present  stage,  [t  proves  that  justice  is  a  profit.  The  more 
^jusMtve  are,  the  more  we  shall  prosper. 

Since  justice  is  a  profit,  why  do  not  the  Confucians  use 
the  word  profit  as  often  as  the  word  justice?  Human  na- 
ture is  already  selfish,  and  society  is  already  a  profit- 
seeking  society.  The  people  know  profit  in  the  narrow 
sense  by  birth,  and  do  not  need  any  more  teaching  about  it. 
I  f  a  great  teacher  like  Confucius  were  to  talk  constantly  about 
profit,  it  would  make  the  people  think  about  profit  still  more 
and  about  justice  still  less.  They  would  care  much  more 
for  money  than  for  character.  They  would  excuse  them- 
'  Classics,  vol.  ii,  pp.  125-7. 


lOO        THE  ECOXOMIC  PRINCIPLES  OF  CONFUCIUS 

selves  on  the  ground  of  the  teachings  of  Confucius,  and 
would  use  Confucius'  word  for  their  pretext.  Therefore, 
Confucius  does  not  use  the  word  profit  very  often,  but  uses 
the  word  justice  for  its  substitute.  This  idea  is  very  well 
explained  by  Adam  Smith.     He  says: 

Those  principles  of  the  human  mind  which  are  most  beneficial 
to  society  are  by  no  means  marked  by  nature  as  the  most 
honorable.  Hunger,  thirst,  and  the  passion  for  sex  are  the 
great  supports  of  the  human  species,  yet  almost  every  expres- 
sion of  these  excites  contempt.  In  the  same  manner,  that  prin- 
ciple in  the  mind  which  prompts  to  truck,  barter,  and  exchange, 
though  it  is  the  foundation  of  arts,  commerce,  and  the  divi- 
sion of  labor,  yet  it  is  not  marked  with  anything  amiable.  .  .  . 
The  plain  reason  for  this  is  that  these  principles  are  so  strongly 
implanted  by  nature  that  they  have  no  occasion  for  that  addi- 
tional force  which  the  weaker  principles  [e.  g.,  generosity] 
need.^ 

Moreover,  social  profit  is  harmonious  with  social  justice, 
while  individual  profit  is  not  always  harmonious  with  in- 
dividual justice.  Confucius  says:  ''  Riches  and  honors  ac- 
quired by  injustice  are  to  me  as  a  floating  cloud."  ^  He 
recognizes  that  there  are  some  individual  profits  without 
the  principle  of  justice.  Yang  Hu  was  a  bad  officer  at 
the  time  of  Confucius,  but  Mencius  quotes  his  words  as  fol- 
lows :  "  He  who  seeks  to  be  rich  will  not  be  benevolent. 
He  who  wishes  to  be  benevolent  will  not  be  rich."  ^ 
Mencius  thinks  that  there  is  sometimes  a  contradiction  be- 
tween economic  gains  and  ethical  principles.  Hence,  Con- 
fucius speaks  of  the  superior  man  as  one  who,  when  he  sees 
gain,  thinks  of  justice.*     And  hence,  the  Record  of  Rites   n^jti 

'  Lectures  of  Adam  Smith,  p.  232. 
'  Classics,  vol.  i,  p.  200. 
'  Classics,  vol.  ii,  p.  240. 
*  Classics,  vol.  i,  p.  314, 


ECONOMICS  AND  ETHICS  loi 

says:  ''When  yon  find  wealth  within  your  reach,  do  not 


TT-r 


try  to  get  it  by  improper  means 

III.    CHOICE    BETWEEN    ECONOMIC    LIFE    AND    ETHICAL    LIFE 

Even  though  the  economic  principles  are  finally  harmon- 
ious with  those  of  ethices,  under  some  circumstances  eco- 
nomic life  cannot  exist  along  with  ethical  life.  Hence, 
we  shall  see  how  Confucius  makes  a  choice  between  these 
two  things. 

W^hen  Tzu-kung  asks  Confucius  about  government,  Con- 
fucius says:  "The  recjuisites  of  government  are  that  there 
be  sufficiency  of  food,  sufficiency  of  soldiers,  and  the  faith 
of  the  people."  Tzu-kung  says:  *'  If  it  cannot  be  helped, 
and  one  of  these  must  be  dispensed  with,  wdiich  of  the  three 
should  be  foregone  first?"  "The  soldiers",  says  Con- 
fucius. Tzu-kung  again  asks:  "If  it  cannot  be  helped, 
and  one  of  the  remaining  two  must  be  dispensed  with,  which 
of  them  should  be  foregone?"  Confucius  answers:  "  Part 
with  the  food.  I^>om  of  old,  death  has  been  the  lot  of  all 
men:  but  if  the  people  have  no  faith  in  their  hearts,  there  is 
no  standing  for  any  one."  ' 

This  dialogue  is  very  important  and  very  interesting; 
the  questions  and  the  answers  arc  botli  very  good.  The 
word  food  includes  all  econonuc  life:  the  word  soldiers,  all 
military  forces  and  equipments:  and  the  word  faith,  all  re- 
ligious and  ethical  life.  So  far  as  we  have  seen,  Confucius 
emphasizes  economic  life  as  the  first  thing  in  society.  And 
even  in  this  dialogue,  he  i)uts  food  before  the  other  two. 
Rut.  when  the  economic  life  and  ethical  life  cannot  both  be 
preserved,  economic  life  must  be  sacrificed.  This  seems 
a  foolish  policy,  and  an  impracticable  theory.  Moreover, 
it  sorms  contradictory  to  his  own  principle  that  economic 

*  /  i  A'l.  hk.  i.  p.  62. 

•  Classics,  vol.  i,  p.  254 


I02        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

life  should  come  before  ethical  life.  In  reality,  however, 
there  is  great  harmony  here.  In  the  primary  stage,  when 
the  people  do  not  know  much  about  faith,  and  their  imme- 
diate need  is  food,  if  you  talk  to  them  on  any  subject,  such 
as  religion  or  ethics,  before  they  can  satisfy  their  hunger, 
they  will  not  listen  to  you.  Food,  therefore,  must  come  be- 
fore all  other  things.  In  the  advanced  stage,  when  they 
have  built  a  society  as  high  as  a  state,  they  must  know  some- 
thing about  faith,  and  faith  is  the  strongest  social  tie.  If 
the  getting  of  food  were  their  sole  aim,  or  escaping  from 
death  their  highest  ideal,  they  would  do  anything  in  any  way 
for  the  sake  of  their  lowest  self.  Without  faith,  the  world 
would  be  a  wilderness ;  no  one  would  trust  others,  and  every 
one  would  be  an  enemy  to  others.  Society  could  not  exist ; 
and  at  last,  not  even  the  individual  could  exist.  Only  the 
strongest  would  survive.  In  the  beginning,  the  people  would 
sacrifice  their  faith  to  escape  death;  but  ultimately,  they 
would  fall  together  into  death  because  they  had  no  faith. 
A  great  teacher  like  Confucius  must  prefer  faith  to  food. 
Or,  in  other  words,  he  must  choose  to  die  with  faith  rather 
than  to  live  without  it.  Food  is  the  primary  means  of  build- 
ing up  society,  but  faith  is  the  final  end  in  maintaining 
it.  These  two  theories  of  Confucius  are  not  contradictory. 
Hence,  this  policy  is  not  only  honest,  but  also  wise.  Nor 
is  it  impracticable. 

To  show  that  the  ethical  life  should  be  preferred  to  the 
economic  life,  Mencius  cites  this  concrete  case,  and  shows 
that  every  one  has  such  conscience.     He  says : 

We  desire  fish,  and  we  also  desire  bear's  paws.  If  we  cannot 
have  the  two  together,  we  will  let  the  fish  go  and  take  the 
bear's  paws.  So,  we  desire  life,  and  we  also  desire  righteous- 
ness. If  we  cannot  keep  the  two  together,  we  will  let  life  go 
and  choose  righteousness.  We  desire  life  indeed,  but  there  is 
that  which  we  desire  more  than  life,  and  therefore  we  will  not 


ECONOMICS  A\'D  ETHICS 


103 


seek  to  possess  it  by  any  improper  ways.  We  dislike  death  in- 
deed, but  there  is  that  which  we  dislike  more  than  death,  and 
therefore  there  are  occasions  when  we  will  not  avoid  dan- 
ger. .  .  . 

Therefore,  men  have  that  which  they  desire  more  than  life, 
and  that  which  they  dislike  more  than  death.  They  who  have 
this  conscience  are  not  men  of  distinguished  talents  and  virtue 
only.  All  men  have  it ;  what  distinguishes  such  men  is  simply 
that  they  do  not  lose  it. 

Here  are  a  small  basket  of  rice  and  a  platter  of  soup,  and 

the  case  is  one  in  which  the  getting  them  will  preserve  life, 

and  the  want  of  them  will  be  death ;  if  they  are  offered  with 

an  insulting  voice,  even  a  tramp  will  not  receive  them,  or  if 

you  first  tread  upon  them,  even  a  beggar  will  not  stoop  to  take 

them.* 

[ 
This  statement  of  Mencius,  that  even  the  tramp  or  the 

beggar  still  cares  for  his  personal  honor,  and  that  he  pre- 
serves it  even  at  the  expense  of  his  life,  is  very  true.  Hence, 
there  is  really  no  such  man  as  may  be  called  the  purely 
economic  man,  and  the  ethical  motive  is  rooted  in  human 
nature  as  well  as  the  economic  motive.  For  this  reason,  we 
can  harmonize  the  economic  life  with  the  ethical  life. 

IV.    ACCEPTANCE   OF    WEALTH 

When  we  discuss  economics  and  ethics,  the  important 
question  is  the  acceptance  of  wealth.  As  men  are  living 
in  society,  they  have  to  give  and  receive  wealth  in  daily 
life.  But  what  are  the  principles  which  govern  those  mat- 
ters? On  this  question,  it  is  best  to  look  at  the  teachings  of 
Mencius.  For  the  principles  of  both  giving  and  receiving 
wealth,  he  says:  '*  When  it  appears  proper  to  take  a  thing, 
and  afterwards  not  proj)er,  to  take  it  is  contrary  to  moder- 
ation.     When  it  appears  proper  to  give  a  thing,  and  after- 

'  Classics,  vol.  ii.  pp.  411-3. 


r 


104        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

wards  not  proper,  to  give  it  is  contrary  to  kindness."  ^ 
Again,  when  he  speaks  of  Yi  Yin,  he  says  that  Yin  would 
neither  have  given  nor  have  taken  a  single  straw,  if  it  were 
contrary  to  justice  and  principle."  Therefore,  he  wants  the 
people  to  act  in  the  proper  way  not  only  in  their  taking,  but 
also  in  their  giving;  foolish  generosity  and  unwise  alms  are 
not  approved  by  Mencius. 

But  the  principles  governing  the  taking  of  wealth  are 
more  important  than  those  governing  the  giving  of  it,  be- 
cause human  nature  is  more  often  too  covetous,  rather  than 
too  liberal.  For  the  taking  of  wealth,  Mencius  gives  this 
general  principle :  if  there  be  not  proper  gfround  for  taking 
it.  a  single  bamboo-cup  of  rice  may  not  be  received  from  a 
man ;  but  if  there  be  such  proper  ground,  then  Shun's  re- 
ceiving the  empire  from  Yao  is  not  to  be  considered  ex- 
cessive.^  Therefore,  the  taking  of  wealth,  no  matter  how 
great  or  how  little,  must  be  governed  by  moral  con- 
^  si  derations. 

The  greatest  difficulty,  however,  is  to  determine  what 
is  proper  and  what  is  not.  On  this  point,  there  is  no  cer- 
tain rule.  But  we  may  refer  to  concrete  cases  and  take 
them  as  examples.  When  Mencius  was  in  Ch'i,  the  king 
sent  him  a  present  of  2000  taels  of  fine  gold,  and  he  refused 
it.  But  he  accepted  a  present  of  1400  taels  when  he  was  in 
Sung,  and  accepted  one  of  1000  taels  when  he  was  in  Hsieh. 
Chen  Tsin,  his  pupil,  asked  him  if  there  were  not  something 
wrong  in  one  of  the  two  cases.  But  Mencius  said  that  they 
are  all  right.  When  he  was  in  Sung,  he  was  about  to  take 
a  long  journey.  It  is  a  custom  of  the  Chinese  to  present 
a  traveler  with  a  traveling  present.  Therefore,  the  mes- 
sage of  the  prince  was  the  sending  of  such  a  present.     Why 

'  Classics,  vol.  ii,  p.  3>,8. 

'/fc/'/..      p.      362.  3     ,7,;,/  p  ,Y^Q 


ECONOMICS  AND  ETHICS 


105 


should  he  have  declined  the  gift?  When  he  was  in  Hsieh, 
he  was  apprehensive  for  his  safety,  and  taking  measures 
for  his  protection.  The  message  was,  "  I  have  heard  that 
you  are  taking  measures  to  protect  yourself,  and  send  this 
to  help  you  in  procuring  arms."  Why  should  he  have  de- 
clined the  gift?  But  when  he  was  in  Ch'i.  he  had  no  oc^ 
casion  for  money.     To  send  a  man  a  gift  when  he  has  no 


occasion  tor  it.  is  to  bribe  him.     How  is  it  possible  that  a 


superior  man  should  accept  a  bribe?  '  These  are  concrete 
cases  showing  the  principles  of  accepting  and  declining 
wealth. 

There  is  a  most  interesting  discussion  between  Mencius 
and  Wan  Chang,  his  pupil,  about  the  acceptance  of  wealth. 
The  point  of  Mencius  is  that,  when  the  donor  offers  his  gift 
on  a  reasonable  ground  and  in  a  manner  in  accordance  with 
propriety,  even  Confucius  would  have  received  it.  "  Here 
now,"  says  Wan  Chang,  **  is  one  who  stops  and  robs  people 
outside  the  city  gates.  He  offers  his  gift  on  a  ground  of 
reason  and  in  a  proper  manner ; — would  it  be  right  to  re- 
ceive it  when  so  acquired?"  The  answer  of  Mencius  is.  of 
course,  negative.  '*  The  princes  of  the  present  day."  i)ur- 
sues  Wan  Chang.  '*  take  from  their  people  just  as  a  robber 
despoils  his  victim,  ^'et  if  they  put  a  good  face  of  pro- 
priety on  their  gifts,  the  superior  man  receices  them.  I 
venture  to  ask  you  to  explain  this."  Here  Wan  Chang  al- 
ludes to  ?vlencius  himself.      Mencius  answers: 

Do  you  think  that,  if  there  should  arise  a  truly  imperial  sov- 
ereign, he  would  collect  the  princes  of  the  present  day  and  put 
them  all  to  death?  Or  would  he  admonish  them,  and  then,  if 
they  did  not  change  their  ways,  put  them  to  death  ?  Indeed, 
to  call  every  one  who  takes  what  does  not  properly  belong  to 
him  a  robber  is  jnishing  a  ix)int  of  resemblance  to  the  utmost 

'  Classics.  \o\.  ii.  i)p    21  yf'^. 


I06        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

and  insisting  on  the  most  refined  idea  of  righteousness.  When 
Confucius  was  in  office  in  Lu,  the  officials  struggled  together 
for  the  game  taken  in  hunting,  and  he  did  the  same.  If  that 
struggling  for  the  captured  game  was  proper,  how  much  more 
may  the  gifts  of  the  princes  be  received !  ^ 

According  to  the  reasoning  of  Mencius,  we  may  receive  a 
gift  offered  on  a  reasonable  ground  and  in  a  proper  manner, 
and  need  not  push  the  idea  of  absolute  justice  to  the  ex- 
treme.  For  instance,  we  may  receive  donations  from  a 
trust  in  a  proper  way,  and  need  not  regard  the  trust  as  a 
robber.  Although  the  trust  may  take  what  does  not  prop- 
erly belong  to  it,  we  cannot  call  it  a  robber  because  the 
whole  structure  of  present  society  is  not  an  ideal  society. 
Under  present  conditions,  we  cannot  judge  every  one  ac- 
cording to  the  ideal  standard.  We  should  need  to  change 
the  condition  itself  first.  This  is  the  explanation  of  Mencius, 
and  it  may  be  also  the  principle  of  Confucius. 

V.    THREE   DOCTRINES   DIRECTLY   OPPOSED   TO   ECONOMIC 

MOTIVE 

Confucius  has  very  many  teachings  on  the  subject  of 
ethics,  but  we  shall  leave  them  out  entirely,  and  take  up 
only  three  doctrines  which  are  directly  against  the  economic 
motive.  The  first  is  the  doctrine  of  fate ;  the  second  is  the 
doctrine  of  name;  and  the  third  is  the  doctrine  of  soul.  All 
are  very  important  teachings  of  Confucius. 

I.  Doctrine  of  Fate 
In  order  to  understand  the  doctrine  of  fate,  we  must  ask 
first  what  is  meant  by  the  word  fate.  Here  is  a  definition 
given  by  Mencius :  "  That  which  is  done  without  man's 
doing  is  from  Heaven.  That  which  happens  without  man's 
causing  is  from   fate."  ^     These  two  words,   Heaven   and 

^Classics,  vol.  ii,  pp.  379-383.  ^  Ibid.,  p.   35Q. 


ECONOMICS  AND  ETHICS 


107 


fate,  are  interchangeable.  According  to  the  Adjunct  to 
the  Canon  of  Filial  Piety,  there  are  three  kinds  of  fate. 
Doing  good  and  getting  good  is  called  receiving  fate;  do- 
ing good  but  getting  evil  is  called  encountering  fate ;  doing 
evil  and  getting  evil  is  called  following  fate.  Therefore, 
Mencius  says :  ''  There  is  a  fate  for  everything.  A  man 
should  receive  submissively  what  may  be  correctly  ascribed 
thereto."  ^  Indeed,  the  word  fate  has  three  points  of  view. 
From  the  religious  viev^point.  it  is  a  supernatural  power 
predetermining  everything.  F'rom  the  philosophical  view- 
point, it  is  the  law  of  necessity.  From  the  ethical  view- 
pHDint,  it  is  the  right  principle,  doing  the  right  thing  at  the 
right  moment  and  in  the  right  way.  The  doctrine  of  fate 
of  Confucius  embraces  these  three  points  of  view:  hence  he 
says  that  without  recognizing  fate,  it  is  impossible  to  be 
a  superior  man." 

Believing  in  fate  and  having  no  anxiety  to  acquire  wealth, 
Confucius  gives  himself  as  an  example.  He  says:  *'  If  the 
search  for  riches  were  sure  to  be  successful,  though  I  should 
become  a  groom  with  whip  in  hand  to  get  them,  I  should 
do  so.  As  the  search  may  not  be  successful,  I  will  follow 
after  that  which  I  love."  *  What  he  loves  is  the  study  of 
truth,  and  not  the  search  for  wealth.  Hence  he  says: 
''  Death  and  life  have  their  fate;  riches  and  honors  depend 
upon  Heaven."  *  The  word  Heaven  and  the  word  fate  are 
the  same  thing  expressed  differently. 

Since  man's  fate  is  determined  in  Heaven,  and  iiis  na- 
ture is  also  given  by  Heaven,  how  can  he  harmonize  these 
two  things  when  his  nature  has  wants  and  his  fate  cannot 
satisfy  them?     According  to  Confucius,  man  should  subject 

*  Classics,  vol.  ii,  p.  449. 
2  Classics,  vol.  i.  p.  354. 
^Ibid.,  p.   198. 

*  Quoted  by  Tzu-hsia.  ibid.,  pp.  252-3. 


Io8        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

his  nature  to  fate.  He  says :  "  The  superior  man  proclaims 
the  doctrine  of  fate  as  a  barrier  against  material  wants."  ^ 
As  the  human  wants  rooted  in  nature  are  very  numerous, 
and  never  can  be  completely  controlled  by  anything,  he  pro- 
claims the  fate  which  is  in  Heaven  and  beyond  the  power 
of  man,  in  order  to  prevent  unlawful  ambition  and  to  lessen 
unlimited  desires.  Mencius  gives  the  same  principle.  He 
says: 

For  the  mouth  to  desire  sweet  tastes,  the  eye  to  desire  beau- 
tiful colors,  the  ear  to  desire  pleasant  sounds,  the  nose  to  de- 
sire fragrant  odors,  and  the  four  limbs  to  desire  ease  and  com- 
fort :  these  wants  are  of  human  nature.  But  there  is  fate  in 
connection  with  them,  and  the  superior  man  does  not  say  of 
his  pursuit  of  them,  "  It  is  my  nature."  ^ 

Mencius  recognizes  what  human  nature  is.  but  he  teaches 
men  to  respect  fate  and  not  to  excuse  their  pursuit  of  grati- 
fication on  the  pretext  of  nature.  Therefore,  the  doctrine 
of  fate  is  an  ethical  teaching  directly  modifying  the  econo- 
mic wants. 

From  the  doctrine  of  fate  spring  two  policies.  The  first 
policy  is  negative,  passive,  taking  everything  when  it  comes, 
but  not  running  risks  to  get  it.  This  is  primarily  for  the 
weakening  of  economic  w^ants,  and  especially  so  in  the  in- 
dividual case.  For  the  individual  himself,  if  he  takes  the 
natural  course  and  does  not  try  to  get  anything  by  improper 
means,  frees  his  mind  from  physical  desires,  and  enjoys 
a  great  amount  of  happiness.  It  is  said  in  the  ''Appendix"  of 
the  Canon  of  CJuinges  that  a  sage  rejoices  in  Heaven  and 
knows  fate,  hence  he  has  no  anxieties.^     This  is  the  view 

^  Li  Ki,  bk.  xxvii,  p.  284. 
2  Classics,  vol.  ii,  p.  489. 
2  Vi  King,  n.  354. 


ECONOMICS  AXD  ETHICS 


109 


of  optimism.  If  one  does  not  believe  in  fate,  he  will  be  the 
slave  of  passion  and  the  hunter  of  fortune.  Therefore, 
Confucius  says :  ''  The  superior  man  lives  in  safe  ways  in 
order  to  wait  for  fate,  while  the  mean  man  walks  in  dan- 
gerous paths  in  order  to  catch  luck."  ^ 

But  we  must  not  misunderstand  and  think  that  the  passive 
policy  excludes  the  principle  of  self-help.  When  one  dies 
in  the  discharge  of  his  duties,  it  is  a  regular  fate;  but  when 
one  dies  of  his  own  fault,  it  is  not  a  regular  fate.  There- 
fore, Mencius  says  that  the  one  who  knows  fate  will  not 
stand  beneath  a  precipitous  wall."  Therefore,  according  to 
the  principle  of  rites,  those  who  die  either  from  an  un- 
reasonable attack  which  they  do  not  wisely  escape,  or 
through  the  fall  of  some  dangerous  thing,  or  by  drowning 
through  heedlessness,  should  have  no  condolence  offered 
for  them.''  Indeed,  if  anyone  does  not  help  himself,  fate 
never  can  help  him,  and  he  would  be  punished  by  his  own 
fault.  Fate  is  the  final  cause  which  operates  after  man  has 
tried  his  best,  but  not  a  mere  chance  for  the  careless  man. 
"Trust  in  God  and  keep  your  powder  dry"  is  the  real  mean- 
ing of  waiting  for  fate.  The  only  difference  between  those 
who  recognize  fate  and  those  who  do  not  is  that  the  former 
do  everything  morally,  legally,  reasonably,  and  that  the 
latter  do  the  opposite  thing.  But  fate  does  not  make  men 
do  nothing.  Mencius  says :  "  The  superior  man  performs 
the  law  of  right,  and  thereby  waits  simply  for  fate."  * 

The  second  policy  is  positive,  active,  trusting  one's  own 
principles,  and  disregarding  all  circumstances.  This  is 
primarily  for  the  fulfillment  of  ethical  duties,  and  especially 

*  Classics,  vol.  i.  p.  396. 
'  Classics,  vol.  ii,  p.  ^50. 
'  Li  Ki.  bk.  ii.  p.  131. 

*  Classics,  vol.  ii,  p.  496. 


no        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

SO  in  the  social  case.  In  the  social  relations  and  conditions, 
it  is  usually  very  difficult  for  men  to  carry  out  their  ethical 
principles ;  and  there  is  fate.  But  we  should  be  true  to  our 
nature,  and  should  not  discourage  ourselves  by  saying 
that  there  is  a  fate.^  The  spirit  of  Confucius  is  that  al- 
though he  knows  the  impracticable  nature  of  the  times,  yet 
will  he  be  striving  to  do  something.^  He  makes  himself 
responsible  for  the  betterment  of  the  world,  and  exhausts  all 
his  mental  powers.  This  is  the  principle  of  ''  establish- 
ing fate." 

The  active  policy  is  not  to  disregard  fate,  but  to  believe 
it,  and  such  a  belief  makes  the  character  of  man  very  strong. 
When  Confucius  was  in  the  state  of  Wei,  he  lived  with 
Yen  Ch'ou-yu,  a  worthy  of  Wei.  But  Mi  Tzu,  an  un- 
worthy favorite  of  the  court,  informed  Confucius  through 
his  pupil,  that  if  he  would  lodge  with  him,  he  might  obtain 
a  p>osition  as  a  minister.  The  answer  of  Confucius  was 
that  there  is  fate.  Mencius  comments  as  follows :  "  Con- 
fucius went  into  office  according  to  propriety,  and  retired 
from  it  according  to  righteousness.  In  regard  to  his  ob- 
taining office  or  not  obtaining  it,  he  said :  '  There  is  fate.'  "  ^ 
When  Confucius  was  informed  that  Kung-po  Liao,  an  offi- 
cer of  Lu,  slandered  Tzu-lu  to  Chi-sun,  the  prime  minister, 
Confucius  said :  "  If  my  principles  are  to  be  carried  out,  it 
is  fate.  If  they  are  to  fall  to  the  ground,  it  is  fate.  What 
can  Kung-po  Liao  do  to  fate?"*  Therefore,  the  doctrine 
of  fate  makes  man  believe  firmly  his  own  principles,  and 
not  move  on  account  of  anything  outside  of  himself.  Even 
the  question   of   life  and   death   cannot   affect   him, — how 

*  Classics,  vol.  ii,  pp.  489-490. 
'  Classics,  vol.  i,  p.  290. 

'  Classics,  vol.  ii,  p.  365. 

*  Classics,  vol.  i,  p.  289. 


ECONOMICS  ASD  ETHICS  I  j  i 

can  the  question  of  obtaining  office  or  wealth  affect 
him  ?  Mencius  says  :  "  When  neither  a  premature  death  nor 
long  Hfe  causes  a  man  any  double-mindedness,  but  he  cuki- 
vates  his  personal  character,  and  waits  for  whatever  issue ; — 
this  is  the  way  in  which  he  establishes  fate."  ^  Every  one 
has  his  own  fate;  if  he  does  not  believe  it,  he  will  be  dis- 
turbed and  changed  by  even  very  little  things,  and  he  de- 
stroys by  himself  what  he  has  done  before.  This  is  a  lack 
of  self-confidence.  Therefore,  the  doctrine  of  fate  is  good 
not  only  for  those  who  discharge  their  ethical  duties,  but 
also  for  those  who  carry  on  their  economic  business.  In- 
deed, it  applies  to  the  problems  of  daily  life. 

The  doctrine  of  fate  is  accepted  by  Taoism,  but  rejected 
by  Moism.  Mo  Tzu  gives  three  books  against  this  doc- 
trine, but  he  cannot  attack  it  on  any  exact  point.  He  says 
that  by  the  doctrine  of  fate,  the  ruler  and  officer  must  be 
lazy  regarding  the  works  of  government,  and  the  men  and 
women  must  also  be  lazy  regarding  production  of  wealth.^ 
But  this  is  not  the  doctrine  of  fate  at  all. 

2.  Doctrine  of  Name 

The  second  principle  directly  against  the  econonn'c  mo- 
tive is  the  doctrine  of  name.  The  name  (^f  a  man  is  the 
identification  of  his  personality,  and  what  a  man  cares  for  is 
not  merely  the  name  but  the  merits  which  make  the  name 
famous.  Confucius  says :  **  The  superior  man  hates  that 
his  name  will  not  be  praised  after  his  death."  ^  Since  the 
name  is  the  invariable  concomitant  of  merit,  and  no  one  can 
have  been  a  superior  man  without  his  name  being  remem- 
bered, the  name  is  necessary  to  the  superior  man.  This 
does  not  mean  that  he  should  seek  for  his  name  from  others, 

'  Classics,  vol.  ii,  p.  449. 

2  Hk.  xxxvii. 

'  Classics,  vol.  i.  p.  30a 


112        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

but  that  he  should  make  his  name  for  himself.  Again,  he 
says :  "  "When  we  have  established  our  personality  and  dif- 
fused our  principles,  so  as  to  make  our  name  famous  in 
future  ages,  and  thereby  glorify  our  parents :  this  is  the  end 
of  filial  piety."  ^  From  this  statement,  we  know  that  Con- 
fucius regards  the  name  as  the  final  aim  of  ethical  life. 
It  is  said  by  Ssu-ma  Chien  that  establishing  a  name  is  the 
highest  of  conduct." 

The  doctrine  of  name  is  to  make  the  ethical  motive 
stronger  than  the  economic  motive,  and  to  make  people 
disregard  their  economic  conditions  through  attachment  to 
virtue.     Confucius  says: 

Riches  and  honors  are  what  men  want.  But,  if  they  are  ob- 
tained in  an  improper  way,  they  should  not  be  held.  Poverty 
and  low  estate  are  what  men  hate.  But,  even  though  they  be- 
fall one  who  does  not  deserve  them,  they  should  not  be  evaded. 
If  a  superior  man  abandon  the  virtue  of  love,  how  can  he 
completely  make  his  name  ?  The  superior  man  does  not,  even 
for  the  space  of  a  single  meal,  act  contrary  to  the  virtue  of 
love.  In  moments  of  haste,  he  cleaves  to  it.  In  times  of  dan- 
ger, he  cleaves  to  it.^ 

This  is  the  ethical  teaching  which  directly  opposes  econo- 
mic wants.  What  we  must  cling  to  is  the  virtue  of  love, 
and  it  is  the  means  by  which  to  make  our  name  complete. 
Therefore,  we  must  cleave  to  the  virtue  of  love  and  must  not 
prefer  riches  to  poverty.     This  is  the  way  of  making  a  name. 

Since  desire  for  riches  and  hatred  of  poverty  are  very 
strong  human  motives,  how  can  Confucius  make  men  in- 
different to  these  two  conditions  and  careful  for  their  name? 
In  order  to  preach  the  doctrine  of  name,  not  oijly  are  ethical 
theories  needed,  but  also  historical  facts.     Hence,  Confucius 

'  Sacred  Books  of  the  East,  vol.  iii,  p.  466. 
^  History  of  Han,  ch.  Ixii. 
•''  Classics,  vol.  i,  p.  166, 


ECONOMICS  AND  ETHICS  1 13 

gives  these  facts  to  show  that  a  name  is  independent  of 
riches,  and  that  it  is  much  more  lasting  and  important.  He 
says: 

The  Duke  Ching  of  Qi'i  had  a  thousand  teams,  each  of  four 
horses,  but  on  the  day  of  his  death,  the  people  did  not  praise 
him  for  a  single  virtue.  Po-yi  and  Shu-ch'i  died  of  hunger  at 
the  foot  of  the  Shou-yang  mountain,  but  the  people,  down  to 
the  present  time,  praise  them.  ''  It  is  certainly  not  on  account 
of  material  wealth,  but  merely  on  account  of  personal  distinc- 
tion " — is  not  that  saying  illustrated  by  this  ?  ^ 

The  rich  prince  cannot  live  longer  than  the  day  of  his  death, 
and  all  his  riches  cannot  be  of  any  use  to  him ;  but  the  two 
starved  men  can  live  forever  by  their  names.  This  is  proof 
that  the  name  has  much  more  value  than  riches,  and  man 
should  not  deceive  himself  when  he  makes  a  choice  be- 
tween them.  Therefore,  Chia  Yi  (352-384  A.  K.  or 
200-168  B.  C. )  says:  "  The  coveteous  man  dies  for  the  sake 
of  wealth,  but  the  heroic  man  dies  for  the  sake  of  his 
name.    " 

Some  people  would  say  that  the  doctrine  of  name  is  based 
on  selfishness,  and  that  it  is  not  the  highest  principle  of 
ethics.  This  might  be  somewhat  true,  but  we  must  discuss 
it  further.  To  care  for  the  name  may  be  a  form  of  selfish- 
ness, but  we  never  can  get  away  from  selfishness  in  that 
sense,  no  matter  how  perfect  the  ethical  principle.  The 
highest  principle  is  that  virtue  is  for  virtue's  sake.  Con- 
fucius says:  '*  The  determined  scholar  and  the  man  of  vir- 
tue will  not  seek  to  live  at  the  expense  of  injuring  their 
virtue,  but  will  sacrifice  even  their  lives  to  preserve  their 
virue  complete."  ^     This  is  the  highest  type  <jf  man.     But 

^Classics,  vol.  i.  p.  315. 

-'  Historical  Record,  cli.  Ix.\xiv. 

^Classics,  vol.  i,  p    297. 


1 14        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

when  we  ask  why  they  sacrifice  their  lives  to  preserve  their 
virtue  complete,  it  must  be  explained  that  in  this  way  they 
satisfy  their  ethical  wants.  It  is  a  feeling  that  they  cannot 
withstand,  and  for  the  satisfaction  of  this  feeling  they  sacri- 
fice even  their  lives.  This  may  be  selfishness,  but  how  can 
we  get  any  better  than  this  ?  In  fact,  man  is  a  living  crea- 
ture with  feelings  and  wants,  and  he  never  can  be  an  ab- 
solutely unselfish  man  from  this  point  of  view,  unless  he  is 
not  a  man. 

Since  men  are  generally  very  anxious  to  make  profit,  Con- 
fucius cannot  weaken  such  an  economic  interest  without 
arousing  the  ethical  interest ;  hence  he  preaches  the  doctrine 
of  name  as  a  substitute  for  profit.  Human  nature  is  so 
weak  that  it  does  not  want  to  do  good  unless  there  is  some 
gain  either  in  the  form  of  profit  or  in  that  of  name.  Con- 
fucius says :  "  In  the  whole  world,  there  is  only  one  man 
who  loves  what  is  proper  to  humanity  without  some  per- 
sonal object  in  the  matter,  or  who  hates  what  is  contrary 
to  humanity  without  being  apprehensive  of  some  evil." 
Again,  he  says :  "  The  philanthropist  practices  the  virtue  of 
humanity  easily  and  naturally;  the  wise  man  practices  it 
for  the  sake  of  advantage  which  it  brings;  and  those  who 
fear  the  guilt  of  transgression  practice  it  by  constraint."  ^ 
We  should  not  expect  all  men  to  be  philanthropists  practic- 
ing virtue  without  aiming  at  any  advantage,  and  we  should 
give  some  reward  to  anyone  who  practices  this  virtue.  If 
we  taught  the  people  not  to  make  profit,  and  denied  them 
also  the  interest  of  making  a  name,  it  would  be  too  cruel, 
and  unjust,  and  human  society  would  not  progress  at  all. 
Therefore  Confucius  establishes  the  doctrine  of  name  in 
order  to  draw  the  people  away  from  the  economic  world  to 
the  ethical  world,  and  to  give  them  ethical  gain  instead  of 
economic  gain. 

'  Li  Ki,  bk.  xxix,  pp.  332-3. 


ECOXOMICS  AXD  ETHICS  1 15 

According  to  Confucius,  the  name  has  two  kinds  of  use, 
one  for  reward  and  the  other  for  punishment.  In  the 
Spring  and  Autiunn,  he  exercises  his  authority  to  praise  and 
to  condemn  men,  from  the  emperor  to  the  common  people, 
by  the  use  of  name.  When  he  praises  a  name,  even  a  single 
word  is  more  honorable  than  the  position  of  emperor;  and 
when  he  condemns  a  name,  even  a  single  word  is  more 
severe  than  the  death  penalty.  Therefore,  when  he  speaks 
of  Wu  Wang,  he  says  that  he  does  not  lose  his  famous 
name  in  the  world.'  Mencius  says:  *'  If  a  ruler  is  called 
after  his  death  by  the  name  of  the  Dark  or  the  Cruel,  even 
though  he  may  have  filial  sons  and  affectionate  grandsons, 
they  will  not  be  able  to  change  his  bad  name  even  after  a 
hundred  generations."  "  Hence,  the  people  are  impelled 
to  do  good  in  the  hope  of  getting  a  good  name,  and  are 
afraid  to  do  wrong  for  fear  of  getting  a  bad  name.  This 
illustrates  the  usefulness  of  the  doctrine  of  name. 

Taoism  destroys  the  doctrine  of  name.  Lao  Tzu  raises 
the  following  question:  "Which  is  dearer  to  you.  your 
name  or  your  life?""^  He  means  that  the  life  is  dearer 
than  the  name,  and  that  we  should  not  care  for  our  name  at 
the  expense  of  our  life.  Taoism  is  egoistic,  and  ^'ang  Chu 
carries  it  to  the  extreme.  His  doctrine  is  that  everyone 
must  come  to  the  same  end,  death,  no  matter  how  good  or 
how  bad  he  may  be.  The  good  men  have  a  good  name 
after  their  death,  but  they  lose  enjoyment  during  their  life; 
the  bad  men  have  a  bad  name  after  their  death,  but  they 
have  the  enjoyment  of  gratifying  their  wants  during  their 
life.  Both  the  good  name  and  the  bad  name  are  no 
more  to  the  dead  than  to  the  trunk  of  a  tree  or  a  clod  of 
earth  :  they  do  not  know  either  the  praise  or  the  condemna- 

'  Classics,  vol.  i,  p.  400. 
'  Classics,  vol.  ii.  p.  2Q3. 
"  Tao  Te  King,  ch.  xliv. 


Il6        THE  ECONOMIC  PRINCIPLES  OP  CONFUCIUS 

tion.  How  can  a  name  do  any  good  to  the  rotten  bones  ?  ^ 
Such  a  doctrine  is  extreme  Epicureanism,  and  it  is  directly 
against  Confucianism.     But  it  was  swept  away  by  Mencius. 

3.  Doctrine  of  Soul 

The  third  principle  directly  against  the  economic  motive 
is  the  doctrine  of  soul.  With  the  word  soul,  we  must  in- 
clude its  synonyms.  In  the  "  Great  Learning,"  soul  is  also 
called  ''  brilliant  virtue  " ;  in  the  "  Doctrine  of  the  Mean,"  it 
is  called  "  the  nature  of  Heavenly  endowment  ",  ''  the  vir- 
tuous nature",  and  "sincerity" ;  in  the  "Evolution  of  Civili- 
zation", "intelligent  spirit" ;  in  the  "Appendix"  of  the  Canon 
of  Changes,  "essential  spirit";  in  Ming  Tzu  (Mencius), 
it  is  called  "  the  spirit  of  the  greatest  and  strongest ",  "  the 
good  conscience  ",  "  the  good  mind,"  "  the  original  mind  ", 
and  "  mind  ".  According  to  Confucianism,  we  can  look  at 
soul  from  two  points  of  view.  From  the  ethical  viewpoint, 
there  is  the  soul  of  the  living  which  is  the  best  part  of  the 
mind.  From  the  religious  viewpoint,  there  is  the  soul  of 
the  dead  which  is  apart  from  the  body.  It  is  the  same  soul, 
only  in  different  times  of  the  life.  If  we  can  keep  our  soul 
here  in  the  ethical  way,  we  shall  preserve  it  hereafter  as  the 
essential  spirit  shining  in  Heaven ;  if  we  cannot  keep  it 
right,  it  will  be  dissolved  and  changed.^ 

To  contrast  it  with  the  economic  motive,  we  shall  dis- 
cuss the  doctrine  of  soul  only  from  the  ethical  point  of  view. 
On  this  account,  the  teachings  of  Mencius  are  best  fitted  to 
our  purpose.  He  usually  employs  the  word  mind  instead 
of  the  word  soul,  but  its  meaning  is  the  same.  He  first 
points  out  that  the  spiritual  wants  are  just  as  strong  as  the 
physical  wants.  To  illustrate  this  principle,  he  indicates 
that  the  senses  of  the  mouth,  the  ears  and  the  eyes  all  have 
standards  of  taste,  of  sound  and  of  beauty.     Why  should 

'  Cf.  Classics,  vol.  ii,  pp.  93-7.  '-'  Yi  King,  p.  354- 


ECOXOMICS  AND  ETHICS  1 1  j 

the  mind  alone  have  no  standard  at  all?  The  standard  of 
the  mind  is  one  of  reason  and  justice.  Therefore,  reason 
and  justice  satisfy  the  needs  of  our  mind  just  as  the  best 
foods  satisfy  the  needs  of  our  appetite.^ 

Now,  Mencius  is  going  to  show  that  the  soul  is  more  im- 
portant than  the  body.     He  says : 

There  is  no  part  of  the  person  which  a  man  iloes  not  love,  and 
as  he  loves  all,  so  he  must  nourish  all.  .  .  .  But  some  part  of 
the  person  is  noble,  and  some  ignoble ;  some  great,  and  some 
small.  The  great  must  not  be  injured  for  the  small,  nor  the 
noble  for  the  ignoble.  He  who  nourishes  the  little  belonging 
to  him  is  a  little  man,  and  he  who  nourishes  the  great  is  a 
great  man.  .  .  .  The  man  of  only  eating  and  drinking  is 
counted  mean  by  others,  because  he  nourishes  what  is  little  to 
the  neglect  of  what  is  great. ^ 

What  he  means  by  the  noble  and  great  part  of  the  person 
is  the  soul ;  and  by  the  ignoble  and  small  part,  the  body. 
A  man  should  love  both  his  soul  and  his  body,  and  he 
should  nourish  them  both.  But  he  should  nourish  the  soul 
more  than  the  body.  He  who  cares  more  for  the  body  is  a 
little  man.  What  Mencius  calls  ''  the  man  of  only  eating 
and  drinking  "  is  what  we  may  call  the  economic  man  who 
cares  only  for  the  body.  According  to  the  principle  of 
Mencius,  the  chief  object  of  man  is  the  soul  and  not  the 
body,  and  he  should  subject  the  economic  life  to  the  ethical 
or  spiritual  life. 

The  question  arises  as  to  how  he  can  make  the  soul  more 
important  than  the  body,  or  in  other  words,  how  he  can  use 
the  soul  as  the  master  of  the  whole  bcKly.  Why  does  not 
every  one  take  more  care  for  his  soul  than  for  his  body  ? 
To  answer  this  question,  Mencius  gives  a  very  good  principle 
which  is  the  key  to  the  ethical  religion  of  Confucius.  He 
.says : 

'   Classics.  \'v\.  ii.  i>p.  405-7.  *  Ibid.,  pp.  416-7. 


Il8        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

The  senses  of  hearing  and  seeing  do  not  think,  and  are  ob- 
scured by  external  things.  When  the  external  things  come 
into  contact  with  the  senses  which  are  also  only  things,  as  a 
matter  of  course  they  lead  them  away.  To  the  mind  belongs 
the  office  of  thinking.  By  thinking  it  gets  the  right  view  of 
things;  by  neglecting  to  think  it  fails  to  do  this.  Both  the 
senses  and  the  mind  are  what  Heaven  has  given  to  us.  If  a 
man  can  first  establish  the  supremacy  of  the  nobler  part  of  his 
constitution,  the  inferior  part  will  not  be  able  to  take  it  from 
him.     It  is  simply  this  which  makes  the  great  man.^ 

From  this  statement,  we  know  that  the  superiority  of  the 
mind  over  the  senses  is  that  the  mind  can  think  about  any- 
thing and  the  senses  cannot.     Although  both  are  the  en- 
dowments of  Heaven,  the  one  is  nobler  than  the  other.     The 
mind  is  like  the  sovereign,  having  the  full  powers  of  will 
and  reasoning,  while  the  senses  are  like  the  ordinary  officials, 
performing  their  functions  only  in  a  passive  way.       The 
senses  are  material  things  themselves,  and  of  course  they  are 
subjected  to  the  material  things  outside.     But  the  mind  is 
the  soul,  which  has  the  power  of  thinking  and  is  independent 
of  anything.     If  a  man  can  make  his  soul  supreme,  how  can 
the  senses  snatch  it  away?     But  how  can  he  establish  the 
supremacy  of  the  soul  ?     Simply  by  thinking,  and  thinking 
is  sufficient  to  make  a  great  man.     It  is  said  in  the  Canon 
of  History  that  the  effect  of  thinking  is  perspicacity,  and  that 
perspicacity  becomes  the  quality  of  the  holy  man.^     There- 
fore, thinking  is  the  way  of  establishing  the  soul,  and  es- 
tablishing the  soul  is  the  way  of  controlling  economic  wants. 
In  fact,  the  doctrine  of  soul  is  an  ethical  teaching,  but  it  is 
practiced  in  the  economic  life.     Hence,  according  to  Con- 
fucianism, we  can  live  in  the  economic  world,  and  yet  we 
can  be  holy  men. 

'  Classics,  vol.  ii,  p.  418. 
2  Classics,  vol.  iii,  pt.  ii,  pp.  326-7. 


BOOK  III     GENERAL  ECONOMIC 
PRINCIPLES 


CHAPTER  IX 

Economic  Development  as  the  Chief  Cause  of 

Progress 

i.  economic  development 

We  have  already  seen  that  Confucius  is  in  favor  of  the 
inductive  method;  his  statements  are  generally  based  on  his- 
torical facts.  When  he  discusses  with  Tzu-yu  the  evolution 
of  civilization,  he  takes  up  the  economic  development  of  the 
remotest  time  as  the  starting  point.  The  discussion  of  the 
first  stage  is  concerned  only  with  primitive  technique,  such 
as  the  building  of  houses,  the  cooking  of  food,  and  the  mak- 
ing of  clothes.  Indeed,  technical  invention  is  the  basis  of 
civilization. 

Confucius  begins  his  discussion  with  the  so-called  root- 
grubbing  period  which  was  supplemented  by  the  hunting 
stage.  Such  an  economic  condition  was  before  the  age  of 
Pao  Hsi.     His  exact  words  are  as  follows: 

Formerly  the  ancient  kings  had  no  houses.  In  winter  they 
lived  in  caves  which  they  had  excavated,  and  in  summer  in 
nests  which  they  had  framed.  They  did  not  yet  know  the 
transforming  power  of  fire,  but  ate  the  fruits  of  plants  and 
trees,  and  the  flesh  of  birds  and  beasts,  drinking  their  blood, 
and  swallowing  also  the  hair  and  feathers.     They  did  not  yet 

IIP 


120        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

know   the  use  of  flax  and  silk,  but  clothed  themselves  with 
feathers  and  furs. 

The  later  sages  then  arose,  and  men  learned  to  make  use  of 
fire.  They  molded  the  metals  into  articles  and  fashioned  clay 
into  pottery.  By  using  fire,  metals  and  earth,  they  built  towers 
with  structures  on  them,  and  houses  with  windows  and  doors ; 
they  toasted,  grilled,  boiled  and  roasted  their  foods ;  they  pro- 
duced must  and  sauces ;  they  dealt  with  the  flax  and  silk  so  as 
to  form  linen  and  silken  fabrics.  They  were  thus  able  to 
nourish  the  living  and  to  give  burial  to  the  dead,  to  serve  the 
ghosts,  the  spirits,  and  God.  In  all  these  things  the  people 
still  follow  the  example  of  that  early  time.^ 

Food,  clothes  and  housing  are  the  three  most  important 
things  in  economic  life.  But  they  never  can  be  made  by  the 
human  hand  until  the  development  of  technique.  The  utili- 
zation of  fire  is  the  most  important  of  all,  and  the  molding 
of  metals  and  baking  of  earth  come  next.  Then  these 
crafts  can  be  used  for  the  purpose  of  getting  food,  clothes  and 
houses.  After  the  economic  life  has  been  satisfied,  the  re- 
ligious life  begins.  This  is  the  origin  of  civilization,  based 
on  economic  development. 

In  the  "  Appendix  "  of  the  Canon  of  Changes,  just  after 
the  first  paragraph  speaking  about  "  administering  wealth  " 
which  has  been  partly  quoted  above, ^  there  are  thirteen  para- 
graphs pointing  out  the  historical  facts  of  "  administering 
wealth  "  by  the  ancient  emperors.  The  whole  chapter  is 
really  an  outline  of  the  economic  development  of  China. 
The  order  of  paragraphs  is  chronological,  and  everything  is 
traced  back  to  the  age  of  invention  and  discovery. 

The  first  emperor  the  "Appendix  "  mentions  is  Pao  Hsi. 
It  says: 

'  Li  Ki,  bk.  vii,  pp.  369-370. 
'  See  supra,  p.  48. 


ECONOMIC  DEVELOPMENT  121 

Anciently,  when  Pao  Hsi  had  come  to  rule  the  world,  looking 
up,  he  contemplated  the  brilliant  forms  exhibited  in  the  sky ; 
and  looking  down,  he  surveyed  the  patterns  shown  on  the 
earth.  He  contemplated  the  ornamental  appearances  of  birds 
and  beasts,  and  the  different  possibilities  of  the  soil.  Near  at 
hand,  in  his  own  person,  he  found  things  for  consideration, 
and  the  same  at  a  distance,  in  things  in  general.  hVom  this  he 
devised  the  eight  trigrams,  in  order  to  show  fully  the  attributes 
of  spiritual  and  intellectual  life,  and  to  classify  the  natures  of 
the  myriads  of  things.  He  invented  the  making  of  nets  of 
various  kinds  by  knitting  strings,  both  for  hunting  and  fishing. 

By  his  name  and  inventions  we  may  know  that  the  age  of 
Pao  Hsi  was  in  the  hunting  and  fishing  stage,  and  also  in 
the  pastoral  stage.' 

The  Chinese  really  have  no  accurate  knowledge  about  the 
earliest  history  of  China,  but  it  is  said  that  the  reign  of 
Pao  Hsi  lasted  one  hundred  and  ten  years,  and  that  the 
fifteen  reigns  which  followed  all  adopted  the  name  of  Pao 
Hsi.  It  is  certain  that  the  period  between  Pao  Hsi  and 
Shen  Nung  must  have  been  \  ery  long.  Since  Shen  Nung 
was  a  great  inventor,  the  "Appendix  "  mentions  him  next. 
It  says:  **  He  fashioned  wood  to  form  the  share,  and  bent 

'  The  name  of  Pao  H;^i  has  some  significance.  Pao  means  kitchen, 
and  Hsi  domestic  animal.  Such  a  name  would  mean  that  he  was  the 
inventor  of  kitchen  and  cookery.  He  is  also  called  by  the  name  of 
Fu  Hsi.  Fu  means  subjugating  or  domesticating,  and  such  a  name 
would  mean  that  he  was  the  inventor  of  the  domestication  of  animals. 
At  that  time,  both  hunting  and  fishing  were  by  means  of  different 
nets.  The  eight  trigrams  were  the  first  invention  of  writing.  For 
example:    —      represents  heaven;    —    ^^      earth;    ^^  thunder; 

"mil^l^^:^    wind;  water;  —    — '-   fire;  —  -         mountain;  and 

im —'  marsh.  They  are  really  eight  characters.  In  the  Chinese 
language,  they  are  called  pa  kua :  /><i  means  eight,  and  kua  means  hang- 
ing. The  latter  means  that  the  phenomena  of  things  are  hung  in 
order  to  show  them  to  the  people.  This  was  the  first  step  toward 
civilization. 


122        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

wood  to  make  the  plough-handle.  The  advantages  of 
ploughing  and  weeding  were  then  taught  to  the  whole  em- 
pire." The  age  of  Shen  Nung  was  thus  the  beginning  of 
the  agricultural  stage.  ^ 

This  age  was  also,  however,  the  beginning  of  the  primi- 
tive commercial  stage.  The  ''Appendix  "  says :  "  He  caused 
markets  to  be  held  at  midday,  thus  bringing  together  all 
the  people,  and  assembling  in  one  place  all  their  commodi- 
ties. They  made  their  exchanges  and  retired,  everyone  hav- 
ing got  what  he  wanted."  This  was  a  very  important  ad- 
vance of  civilization.  Since  the  "Appendix  "  does  not  men- 
tion money,  it  would  seem  that  the  exchanges  of  this  period 
were  mostly  in  the  form  of  barter. 

According  to  the  historians,  the  reign  of  Shen  Nung 
lasted  one  hundred  and  twenty  years.  After  seven  subse- 
quent reigns,  Huang  Ti  arose.  His  reign  lasted  one  hun- 
dred years  (2147-2048  B.  K.  or  2698-2599  B.  C).  After 
two  hundred  and  forty-one  years,  came  the  Emperor  Yao 
whose  reign  lasted  ninety  years,  and  the  Emperor  Shun 
whose  reign  lasted  fifty  years.  Huang  Ti,  Yao  and  Shun 
were  the  three  greatest  emperors,  and  they  were  in  the  his- 
torical periods ;  hence,  the  ''Appendix  "  mentions  them  as  a 
whole.     It  says : 

After  the  death  of  Shen  Nung,  there  arose  Huang  Ti,  Yao  and 
Shun.  They  carried  through  the  necessary  changes  of  material 
things,  so  that  the  people  would  not  get  tired  of  them.  They 
transformed  the  economic  conditions  miraculously  in  order  to 
make  them  fit  the  people.  They  were  harmonized  with  the 
principle  of  the  Canon  of  Changes:  when  the  course  of  any 

^  The  name  of  Shen  Nung  also  has  some  significance.  Shen  means 
divine,  and  Nung  means  farmer.  As  he  was  called  Divine  Farmer,  it 
is  very  clear  that  he  was  the  discoverer  of  agriculture.  Especially 
from  the  word  "  fashioned ",  we  know  that  there  was  the  utilization 
of  metal,  although  the  share  was  made  of  wood. 


ECONOMIC  DEVELOPMENT 


123 


thing  comes  to  an  end,  it  should  be  changed ;  when  it  is 
changed,  it  passes  through  freely ;  when  it  passes  through 
freely,  it  can  continue  for  a  long  time. 

The  principle  of  the  Canon  of  Changes  is  the  theory  of 
evolution,  but  the  ''Appendix  "  illustrates  it  by  the  economic 
development  of  these  three  emperors. 

Indeed,  economic  changes  form  the  most  powerful  ele- 
ments in  evolution  in  the  course  of  civilization.  K'ung 
Ying-ta  (1125-1199  A.  K.  or  574-648  A.  D.),  for  the  ex- 
planation of  this  point,  gives  this  illustration : 

Preceding  the  time  of  Huang  Ti,  the  people  wore  the  furs  of 
animals.  Later,  the  population  grew  larger,  and  the  animals 
became  fewer ;  hence  the  material  for  such  a  dress  would  be 
somewhat  exhausted.  Therefore,  the  adoption  of  silk  and 
flax  for  the  making  of  clothes  was  a  miraculous  transforma- 
tion, in  order  to  adapt  them  to  the  people. 

This  is  quite  an  economic  interpretation  of  history.  In 
short,  the  age  of  Huang  Ti,  and  that  of  Yao  and  Shun, 
marked  an  epoch-making  advance  in  the  history  of  civiliza- 
tion, and  such  an  advance  was  chiefly  based  on  economic 
development.  Therefore,  the  "Appendix  "  does  not  men- 
tion anything  but  the  material  civilization. 

Concerning  the  material  civilization  of  these  three  em- 
perors, the  "Appendix  "  mentions  only  nine  things.  The 
nine  things  were  all  invented  in  the  time  of  Huang  Ti,  and 
were  completed  or  improved  in  the  time  of  Yao  and  Shun. 
Therefore,  the  ".\ppendix  "  does  not  make  any  distinction 
among  them.     The  nine  things  are  in  the  following  order. 

( I )  They  made  the  new  system  of  dress  and  established 
the  social  order  by  the  means  of  it.  Hence,  the  "Api>endix  " 
says:  "  Huang  Ti,  ^'ao  and  Shun  simply  wore  their  upi)er 
aiifl  lower  garments,  as  patterns  to  the  people,  and  good 
order  was  secured  throughout  the  whole  empire."     It  shows 


124        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

the  peaceful,  graceful,  orderly,  and  industrial  society  of 
that  time,  and  it  takes  dress  first  as  a  sign  to  mark  the 
distinction  between  this  age  and  the  ages  previous. 

(2)  They  discovered  the  means  of  navigation.  The 
"  Appendix  "  says :  "  They  cut  open  trees  to  form  boats, 
and  cut  others  long  and  thin  to  make  oars  ....  They 
could  now  reach  the  most  distant  parts,  and  the  whole  empire 
was  benefited."  In  the  making  of  the  boats  and  oars,  they 
made  use  of  metal. 

(3)  They  discovered  the  means  of  transportation.  The 
"Appendix  "  says :  "  They  used  oxen  in  carts,  and  yoked 
horses  to  chariots,  thus  providing  for  the  carriage  of  what 
was  heavy,  and  for  distant  journeys,  thereby  benefiting 
the  whole  empire." 

(4)  After  navigation  and  transportation  had  been  de- 
veloped, there  was  need  of  protection  for  the  cities.  Hence, 
the  "Appendix  "  says :  "  They  made  the  system  of  double 
gates,  and  the  warning  of  the  clapper,  as  a  preparation 
against  the  approach  of  marauding  visitors." 

(5)  For  the  refinement  of  the  food,  they  made  the  pestle 
and  mortar.  The  "Appendix  "  says :  "  They  cut  wood  and 
fashioned  it  into  pestles;  they  dug  in  the  ground  and  formed 
mortars.  Thus  the  myriads  of  the  people  received  the  bene- 
fit arising  from  the  use  of  the  pestle  and  mortar."  As  the 
"Appendix  "  takes  them  as  a  great  invention  among  all 
other  great  things,  we  can  see  how  much  importance  the 
Chinese  ascribe  to  rice. 

(6)  Since  society  was  now  highly  developed,  and  the 
double  gates  and  clapper  were  not  suf^cient  for  protection, 
there  was  need  of  good  weapons.  The  "Appendix  "  says : 
"  They  bent  wood  by  means  of  string  so  as  to  form  bows, 
and  sharpened  wood  so  as  to  make  arrows.  The  utility  of 
bows  and  arrows  was  to  produce  a  feeling  of  awe  over  the 
empire."     These  things  seem  more  military  than  economic, 


ECONOMIC  DEVELOPMENT 


i25 


but  they  really  are  for  economic  purposes,  because  they  are 
for  the  protection  of  wealth. 

(7)  They  changed  the  form  of  shelter.  The  "Ap- 
pendix "  says:  "  In  the  highest  antiquity,  they  made  their 
homes  in  winter  in  caves,  and  in  summer  dwelt  in  the  open 
country.  In  subsequent  ages,  for  these  the  sages  substituted 
houses,  with  the  ridgebeam  above  and  the  projecting  roof  be- 
low, as  a  provision  against  wind  and  rain." 

(8)  As  we  shall  see,  the  Chinese  always  consider  the 
funeral  as  a  part  of  economic  life;  ^  the  ''Appendix  "  men- 
tions the  invention  of  coffins  as  follows : 

When  the  ancients  buried  their  dead,  they  covered  the  body 
thickly  with  pieces  of  wood,  having  laid  it  in  the  open  country. 
They  raised  no  mound  over  it,  nor  planted  trees  around  it ;  nor 
had  they  any  fixed  period  for  mourning.  In  subsequent  ages, 
the  sages  substituted  for  these  practices  the  inner  and  outer 
coffins. 

(9)  So  far  as  the  physical  needs  had  been  satisfied,  there 
should  be  mental  and  legal  development,  and  the  most  im- 
portant thing  was  the  complete  invention  of  writing.  The 
''Appendix  "  says: 

In  the  highest  antiquity,  government  was  carried  on  success- 
fully by  the  use  of  knotted  cords  to  preserve  the  memory  of 
things.  In  subsequent  ages,  the  sages  substituted  tor  these 
written  characters  and  bonds.  By  means  of  these,  the  doings 
of  all  the  officials  could  be  regulated,  and  the  affairs  of  all  the 
people   accurately  examined.- 

This  was  the  last  thing  in  the  economic  development  of 
ancient  China. 

^  See  infra. 

'  }'j   King.   {)p.  3«'^2-5. 


126        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

The  age  of  Huang  Ti,  Yao  and  Shun  was  in  the  agri- 
cultural stage.  Through  the  improvements  of  navigation 
and  transportation,  it  belonged  also  to  the  stage  of  primitive 
commerce.  But  what  made  this  age  a  great  advance  was 
that  it  had  reached  the  beginning  of  the  primitive  in- 
dustrial stage.  The  ships  and  oars,  the  carts  and  chariots, 
the  gates  and  clappers,  the  pestles  and  mortars,  the  bows 
and  arrows,  the  ridgebeams  and  projecting  roofs,  the  dif- 
ferent coffins,  and  the  tablets  which  were  to  be  written,  all 
these  things  required  some  kind  of  skilled  labor.  And 
above  all,  there  was  the  silk  industry.  It  changed  the 
face  of  the  whole  society,  and  distinguished  the  social  order 
by  the  system  of  dress.  It  marked  a  great  advance  not  only 
in  the  economic  development,  but  also  in  the  social  and 
political  organization. 

Looking  at  the  whole  chapter  of  the  ''Appendix,"  we 
can  see  it  is  really  a  historical  treatise  on  Chinese  economic 
development.  Or,  since  the  writer  of  the  "Appendix  " 
would  be  interested  in  the  general  development  of  Chinese 
civilization  as  a  whole,  and  not  in  the  economic  develop- 
ment particularly,  we  may  better  say  that  it  is  certainly  an 
economic  interpretation  of  history.  From  its  beginning  to 
its  end,  it  mentions  thirteen  things;  and,  except  four  things 
only — namely,  the  eight  trigrams,  the  double  gates  and 
clappers,  the  bows  and  arrows,  and  the  written  characters 
and  bonds — all  of  them  are  absolutely  essential  to  economic 
civilization.  Moreover,  even  among  those  four  things,  the 
double  gates  and  clappers  and  the  bows  and  arrows  are 
mainly  for  the  protection  of  economic  life;  and  the  dif- 
ferent forms  of  writing,  from  the  eight  trigrams  to  the 
written  characters  and  bonds,  are  partially  for  the  develop- 
ment of  economic  life.  In  short,  economic  development  is 
the  principal  factor  of  civilization,  while  writing  is  the  most 
important  tool  to  promote  civilization. 


ECONOMIC  DEVELOPMENT 


127 


The  ''Appendix  "  was  written  by  the  immediate  pupils  of 
Confucius,  and  its  importance  is  equal  to  that  of  the  ''  Great 
Learning  "  and  the  ''  Doctrine  of  the  Mean."  It  was  the 
basis  of  the  philosophical  schools  of  the  Sung  dynasty,  and 
it  gave  a  great  impetus  to  thought.  But  the  Schools  of  the 
Sung  did  not  understand  this  chapter  well,  so  that  the 
economic  development  of  China  has  been  retarded  since  that 
time.  The  reason  was  simply  that  they  did  not  know  that 
technical  invention  and  material  welfare  are  the  chief  cause 
of  civilization.  If  we  read  this  chapter  carefully,  we  see 
how  important  to  the  progress  of  civilization  economic  de- 
velopment is  from  the  point  of  view  of  the  Confucians. 

Besides  this  chapter,  we  should  like  to  quote  four  pas- 
sages more  from  the  ''Appendix,"  in  order  to  show  that 
Confucianism  is  somewhat  materialistic  and  praises  technical 
invention  very  highly.  It  says :  "  The  sages,  fully  under- 
standing the  way  of  Heaven,  and  having  clearly  ascertained 
the  experience  of  the  people,  invented  these  divine  things 
as  a  provision  for  the  use  of  the  people."  ^  .\s  the  ''Ap- 
pendix "  calls  such  material  things  "  divine  things  "  and 
the  results  of  "  the  way  of  Heaven  ",  we  can  see  how 
materialistic  is  Confucianism ;  nay,  we  may  even  say  that 
Confucianism  is  a  religion  of  the  economic  world.  It  gives 
its  explanation  as  follows : 

The  first  appearance  of  anything  as  a  bud  is  what  wc  call  a 
semblance ;  when  it  has  received  its  complete  form  we  call  it 
an  article.  How  to  make  and  how  to  use  it  is  what  we  call 
a  law.  The  utilities  arising  from  it  in  external  and  internal 
matters,  so  that  the  people  all  use  it,  stamp  it  with  a  character 
which  we  call  divine.* 

Again,  it  says:  *'  In  preparing  material  things  for  the  reali- 

'  )'i  Kiv.g.  n.  372.  -•  Ibid.,  p.  373. 


128        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

zation  of  practical  use,  and  inventing  the  complete  articles 
for  the  benefit  of  the  whole  world,  there  are  none  greater 
than  the  sages."  ^  Hence,  the  Confucians  call  all  the  great 
inventors  by  the  name  of  sages.     It  says  again : 

That  which  is  antecedent  to  the  material  form  exists,  we  say, 
as  a  principle,  and  that  which  is  subsequent  to  the  material 
form  exists,  we  say,  as  an  article.  Transforming  and  shaping 
it  is  what  we  call  change.  Carrying  it  out  and  putting  it  in 
operation  is  what  we  call  success.  Taking  the  result  and  set- 
ting it  forth  for  all  the  people  of  the  whole  world  is  what  we 
call  the  business  of  life.^ 

This  passage  is  simply  an  explanation  of  the  process  of 
invention.  It  traces  back  to  the  beginning  when  there  is 
merely  a  principle  without  anything  existing,  and  comes 
down  to  the  end  when  the  article  is  utilized  in  the  business 
of  life.  By  these  four  passages,  we  can  understand  per- 
fectly that  the  Confucians  take  technical  invention  as  the 
basis  of  economic  development,  and  the  economic  develop- 
ment as  the  basis  of  all  civilization. 

What  Confucius  discusses  in  the  "  Evolution  of  Civiliza- 
tion "  and  what  the  ''Appendix  "  narrates  is  the  economic 
development  of  the  earliest  China.  But  we  should  like  to  say 
something  about  the  economic  progress  made  about  the 
time  of  Confucius.  The  Chou  dynasty,  as  we  know,  was 
the  period  of  maturity  of  the  Chinese  civilization.  In  the 
beginning  of  this  dynasty  (about  571  B.  K.  or  1122  B.  C), 
there  were  two  great  statesmen ;  the  Duke  of  Chou  and  T'ai 
Kung.  They  both  were  very  efficient  in  developing  Chinese 
economic  civilization.  But  T'ai  Kung,  especially,  after  he 
withdrew  from  the  imperial  government  and  came  to  his 
feudal  state,  Ch'i,  devoted  all  his  attention  to  economic 
development,  and  made  Ch'i  the  chief  state   for   industry 

'  ^''  ^'".'/.  P-  373-  2  Jbid.,  p.  377. 


ECONOMIC  DEVELOPMESr 


J  29 


and  commerce  in  the  Chinese  world.  This  was  the  tirst 
time  that  China  rose  to  the  stage  of  national  economy;  and 
even  began  to  reach  that  of  international  economy. 

Later,  Ch'i  declined;  but  Kuan  Chung,  or  Kuan  Tzu 
(died  93  B,  K.  or  644  B.  C),  minister  of  Ch'i,  raised  Ch'i 
again  to  the  chief  state  of  industry  and  commerce,  and  its 
prosperity  lasted  until  the  end  of  its  political  life  (331  A.  K. 
or  221  B.  C).  In  the  period  of  Spring  and  Autumn  (171 
B.  K. — 71  A.  K.  or  722 — 481  B.  C. ),  there  were  many  in- 
dustrial and  commercial  states  besides  Ch'i;  hence,  economic 
civilization  in  the  time  of  Confucius  was  highly  developed. 
This  period  was  really  in  the  stage  of  international  economy 
or  world  economy.  Of  course,  what  the  ancient  Chinese 
called  world  was  simply  the  Chinese  world.  But  we  must 
understand  that  the  territory  of  the  leading  states  of  this 
period  was  really  equal  to  that  of  the  leading  European 
states  in  modern  times.  Therefore,  there  is  no  reason  why 
we  should  not  call  it  world  economy.  In  the  period  of  War- 
ring States  (149-331  A.  K.  or  403 — 221  B.  C. ),  the  whole 
Chinese  world  was  divided  up  into  only  seven  states,  and 
economic  development  was  still  higher.  This  p)erio(l  was 
the  most  dynamic  in  the  whole  history  of  China,  and  it 
marked  the  sharp  distinction  between  ancient  and  modern 
China.  Such  a  dynamic  condition  was  ended  at  the  be- 
ginning of  the  Han  dynasty  (about  412  A.  K.  or  140  B.  C). 

Taking  Chinese  history  as  a  whole,  we  may  divide  the 
economic  stages  as  follows :  From  the  standpoint  of  the  re- 
lation of  production  to  consumption,  the  period  from  the 
beginning  of  Chinese  history  to  the  beginning  of  the  Chou 
dynasty  was  the  stage  of  self-sufficing  or  isolated  economy; 
that  from  that  period  to  the  period  of  Spring  and  .Autumn 
was  the  stage  of  local  or  village  economy ;  and  that  from 
that  period  to  the  present  day  was  and  is.  the  stage  of  na- 
tional economy.     Of  C()ur.se,  such  a  division  is  very  rough. 


joQ        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

If  we  want  to  get  a  finer  division,  we  may  say  that  the 
period  preceding  the  age  of  Spring  and  Autumn  was  an- 
cient economy;  that  the  period  covering  the  age  of  Spring 
and  Autumn  and  that  of  Warring  States  was  a  transitional 
period;  and  that  the  period  from  the  Ch'in  dynasty  (331, 
or  221  B.  C. )  to  the  present  was  modern  economy.  From 
the  poHtical  point  of  view,  the  period  preceding  the  Ch'in 
dynasty  was  feudahsm,  and  that  after  that  dynasty  was  ab- 
sokite  monarchy;  and  from  the  economic  point  of  view,  the 
former  period  was  marked  by  the  government  ownership 
of  land,  and  the  latter  period,  by  its  private  ownership. 
These  are  the  only  general  statements  we  can  make. 

If  we  wish  to  make  a  general  comparison  between  China 
and  Europe,  we  may  say  that  China  passed  through  the  pas- 
toral stage  in  a  short  period,  but  has  stayed  in  the  agricul- 
tural stage  for  a  very  long  time;  and  that  Europe  had 
stayed  in  the  pastoral  stage  for  a  very  long  time,  but  passed 
through  the  agricultural  stage  in  a  short  period.  We  do 
not  wish  to  go  into  the  details  of  history,  but  we  may  pick 
out  some  features  of  the  present  day  in  order  to  show  some 
of  the  more  striking  contrasts  between  the  Chinese  and 
the  European  economic  civilizations. 

First,  we  may  take  up  foods.  In  the  western  world, 
steaks  and  chops  are  the  principal  meats,  but  their  cooking 
is  quite  simple,  because  they  are  merely  burned  by  fire. 
Milk  is  a  common  drink,  and  butter  is  used  as  oil.  These 
foods  are  quite  similar  to  those  consumed  by  the  Huns 
described  in  the  Han  dynasty.  In  China,  the  people  have 
much  more  varied  food,  and  their  cutting,  seasoning  and 
cooking  are  much  finer  and  more  complex.  Milk  is  not  a 
common  drink  in  China,  and  the  Chinese  do  not  use  butter, 
but  peanut  oil. 

Second,  we  may  take  up  the  subject  of  dress.  In 
the    western    world,    wool    is    the    principal    material    for 


ECOXOMIC  DEVELOPMENT 


13^ 


clothes  and  hats,  and  leather  for  shoes.  The  men's  dress 
is  simple  in  color;  and  the  children  in  most  countries 
wear  only  short  trousers  and  short  dresses,  having  their 
legs  below  the  knees  covered  only  by  stockings.  Furs  and 
feathers  are  still  used  by  women,  not  only  for  warmth,  but 
also  for  fashion.  In  China,  silk,  linen  and  cotton  are  the 
principal  materials  for  clothes,  hats,  or  shoes.  The  men's 
dress  has  different  colors,  and  the  children  do  not  purposely 
expose  any  part  of  their  body.  The  people  wear  furs  only 
as  fur  coats,  but  never  use  feathers.  All  these  things  show 
that  Europe  has  passed  the  pastoral  stage  only  a  short  time 
ago,  and  still  has  indications  of  the  survival  of  that  stage; 
and  that  China  has  long  since  come  to  the  agricultural  stage, 
and  has  the  indications  of  the  agricultural  life. 

It  is  fortunate  for  Europe  and  unfortunate  for  China, 
however,  that  Europe  has  come  to  the  true  industrial  stage 
much  earlier  than  China.  The  great  difference  is  marked 
by  machinery.  Besides  food  and  dress,  moreover,  the  build- 
ing of  Euroj>e  is  better  than  that  of  China.  It  is  probably 
because  in  the  ancient  times,  Greece  and  Rome  had  slaves 
for  erecting  their  buildings,  and  in  the  medieval  times,  the 
church  and  the  feudal  princes  had  great  power  to  build  up 
the  churches  and  castles.  But  in  China,  there  was  no 
slavery ;  the  church  had  no  such  power ;  and  the  feudal 
princes  were  not  so  oppressive  as  those  in  Europe.  What- 
ever the  cause  may  have  been,  there  can  be  no  doubt  that 
Chinese  buildings  are  inferior  to  those  of  Europe.  The 
chief  defects  of  Chinese  buildings  are  that  the  material  of 
the  walls  is  brick  instead  of  stone,  and  that  the  inside  struc- 
ture is  finished  in  wood,  for  the  most  part,  that  is,  there 
are  wooden  beams  and  wooden  pillars  to  support  the  roof, 
and  wooden  floors.  Hence  they  do  not  endure  very  long. 
Moreover,  the  Chinese  have  not  shown  any  great  interest 
in  preserving  their  old  buildings.     Therefore,  even  though 


132        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

there  have  been  many  good  buildings,  they  have  been  de- 
stroyed during  the  revolutions  of  different  dynasties. 

II.    THEORY  OF   PROGRESS 

From  different  v^^ritings,  ^e  may  infer  the  theory  of  pro- 
gress of  Confucius.  There  is  no  better  example  than  the 
principle  of  The  Three  Stages,  as  pointed  out  above,^  for 
proof  that  Confucius  believed  in  progress.  But  the  prin- 
ciple of  The  Three  Stages  is  very  general,  and  it  can  be  ap- 
plied to  every  case.  If  v^e  v^ish  to  get  a  specific  theory 
about  economic  progress,  we  may  come  to  the  tsing  tien  sys- 
tem, and  see  how^  Confucius  expects  that  general  progress  of 
every  kind  v^ill  result  from  this  system.  On  this  specific 
point,  his  theory  of  progress  is  periodical,  and  can  be  meas- 
ured by  the  length  of  one  year,  three  years,  nine  years, 
eighteen  years,  twenty-seven  years,  and  thirty  years.  Ac- 
cording to  his  theory,  progress  can  be  realized  within  three 
years,  and  it  can  be  completed  within  thirty  years.  It  comes 
from  the  tsing  tien  system,  and  we  shall  take  the  inter- 
pretation of  Pan  Ku  from  his  "  Economic  History."^ 

Under  the  tsing  tien  system,  in  the  cultivation  of  three 
years,  the  people  have  a  surplus  of  food  sufficient  for  one 
year.  Hence,  the  sense  of  pride  and  shame  is  developed, 
and  quarrels  and  litigations  do  not  exist.  Therefore,  every 
three  years,  an  examination  of  merit  is  given  to  the  officials. 
Confucius  says :  "  If  there  were  any  of  the  princes  who 
would  employ  me,  in  the  course  of  twelve  months,  I  should 
have  done  something  considerable.  In  three  years,  the  work 
would  be  accomplished."  ^  In  saying  that  the  work  would 
be  accomplished  in  three  years,  he  refers  to  the  tsing  tien 
system.     From  his  point  of  view,  tsing  tien  is  not  only  a 

^  See  supra,  pp.  16-20. 

'  History  of  Han,  ch.  xxiv. 

^  Classics,  vol.  i,  p.  267. 


ECONOMIC  DEVELOPMENT 


133 


theoretical  system,  but  a  practical  one;  and  the  period  of 
three  years  is  the  first  step  of  progress.  In  nine  years, 
after  three  examinations  have  been  held,  the  undeserving 
officials  are  degraded,  and  the  deserving  promoted.  There 
is  a  surplus  of  food  sufficient  for  three  years ;  and  the  im- 
provement of  the  occupations  of  the  people  is  called  '*  ad- 
vancement." In  eighteen  years,  there  are  two  periods  of 
"advancement",  and  such  a  condition  is  called  ''peace"; 
the  surplus  of  food  is  sufficient  for  six  years.  In  twenty- 
seven  years,  there  are  three  periods  of  *'  advancement  ",  and 
this  is  called  ''  extreme  peace  " ;  the  surplus  of  food  is  suffi- 
cient for  nine  years.  Then  virtue  prevails,  and  the  govern- 
ment is  perfected.  Confucius  says :  *'  If  a  true  king  were 
to  arise,  it  would  still  require  a  generation,  and  then  the 
benevolent  government  would  be  complete."  ^  He  means 
that  the  completion  of  the  tsing  tien  system  requires  thirty 
years.  Kung-yang's  Commentary  says:  *'  If  the  system  of 
tithes,  [the  whole  system  of  fshig  ticn],  shall  prevail,  the 
praise  of  peace  will  arise." 

Although  the  tendency  of  the  tsing  tien  system  is  to  level 
the  whole  society  into  a  static  condition,  there  is,  at  the 
same  time,  a  dynamic  principle.  In  every  period  of  nine 
years,  it  requires  a  total  improvement  in  all  the  different 
occupations ; — that  is,  among  all  the  agricultural  and  in- 
dustrial occupations  no  stationary  condition  is  allowed. 
Such  an  improvement  is  called  by  the  name  of  advancement ; 
two  steps  of  advancement  are  called  by  the  name  of  peace; 
three  steps  of  advancement,  extreme  peace.  It  is  peculiar 
enough  that  the  name  of  peace  or  extreme  peace  is  assigned 
for  the  advancement  of  the  occupations  of  the  people;  it 
means  that  we  can  obtain  the  stage  of  peace  only  by  the 
improvement  of  productive  power.     Therefore,  for  the  in- 

'  (  lassies,  vol.  i.  p.  267. 


134        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

dividuals,  the  tsing  Hen  system  does  not  give  anyone  an 
advantage ;  it  is  a  static  model.  But  for  society  as  a  whole, 
advancements  are  necessary ;  and  it  is  the  dynamic  principle. 
This  is  the  theory  of  progress  of  Confucius. 

His  theory  of  progress,  however,  is  based  on  many 
phases.  Some  of  them  have  been  discussed  above,  and  the 
others  will  be  discussed  later.  If  we  want  to  sum  up  his 
whole  theory  of  progress  in  a  few  words,  it  will  be : 

I.  The  Abolition  of  War.     A  peaceful  society  is 
necessary  for  industrial  development.^ 
II.  Technical  Invention.     It  is  the  basis  of  economic 
progress,   and   is   also   the  basis   of   all   other 
progress.^ 
^  III.  The  Control   of   Nature.      It   makes   man   the 

rival  and  the  assistant  of  Heaven  and  Earth.' 
IV.  The  Tsing  Tien  System.     Everyone  has  an  equal 
share  of  the  most  important  part  of  the  means 
of  production.'* 
V.  The    Universally    Free    Education.      It    gives 
everyone  equal  opportunity  for  intellectual  and 
moral  development.^ 
VI.  The  Election  System.     It  makes  a  representa- 
tive   government    based    on    the    educational 
system.® 
VII.  The  Great  Similarity.     It  abolishes  such  social 
institutions  as  state,  family  and  private  prop- 
erty.^ 

'  See  infra. 

2  See  supra,  pp.  1 19-128. 

'  See  infra. 

*  See  infra. 

'  See  supra,  pp.  82-84. 

•  See  supra,  pp.  87-93. 
''  See  supra,  pp.   18-20. 


ECONOMIC  DEVELOPMENT 


135 


VIII.  The  Change  of  Human  Nature.  The  end  of 
the  Confucian  system  is  to  make  human  nature 
perfect. 

All  other  phases  are  discussed  in  other  places,  and  we 
shall  discuss  here  only  the  last  one,  the  change  of  human 
nature.  Since  there  are  many  different  views  regarding 
human  nature,  we  must  go  back  to  Confucius  first.  He 
says :  '*  By  nature,  men  are  nearly  alike ;  by  practice,  they  get 
to  be  wide  apart."  Again,  he  says:  ''  There  are  only  the 
wise  of  the  highest  class,  and  the  stupid  of  the  lowest  class, 
who  cannot  be  changed."  ^  From  this  point  of  view,  there- 
fore, human  nature  is  about  the  same  everywhere  and  in 
everyone,  but  it  generally  can  be  greatly  changed.  What 
Confucius  means  by  nature  is  the  qualities  received  by  birth, 
the  same  meaning  that  has  been  given  by  the  Adjunct  to  the 
Canon  of  Filial  Piety  and  by  Kao  Tzu.  Mencius  and  Hsun 
Tzu  both  differ  from  Confucius  in  their  views,  and  each 
opposes  the  other.  Hsun  Tzu  holds  that  human  nature  is 
evil ;  hence  education  is  the  most  important  thing  for  the 
correction  of  human  nature.  Mencius  holds  that  human 
nature  is  good ;  hence  the  only  thing  which  is  needed  is  to 
extend  what  man  already  has.  They  both  are  not  quite  cor- 
rect, but  each  has  established  his  doctrine.  If  we  make  a 
compromise,  we  may  say  that  Hsun  Tzu  speaks  of  human 
nature  in  the  stage  of  Small  Tranquility,  and  that  Mencius 
speaks  of  it  in  that  of  Great  Similarity.  H  they  have  dif- 
ferent stages  in  mind^  their  doctrines  are  both  correct. 

According  to  the  theory  of  Confucius,  in  the  stage  of 
Great  Similarity  or  Extreme  Peace,  human  nature  is  good. 
As  we  have  quoted  before,  in  the  Great  Similarity  selfish 
schemings  are  repressed  and  find  no  way  to  arise.  Tlvs 
means  that  the  selfishness  of  human  nature  is  changed.      In 

'  Cnssiis.   vol.  i.  p.  318. 


136        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

the  Spring  and  Autumn,  the  Extreme  Peace  Stage  is  that 
in  which  everyone  in  the  world  conducts  himself  like  the 
superior  man,  and  all  the  barbarians  become  civilized. 
Therefore,  changing  human  nature  so  that  it  will  be  per- 
fectly good  is  the  final  aim  of  Confucianism. 

But  how  can  we  go  about  changing  human  nature? 
Simply  by  means  of  those  seven  things  just  mentioned  above, 
but  the  chief  thing  is  economic  prosperity.  Mencius  is 
the  chief  representative  of  those  who. advocate  that  human 
nature  is  good,  yet  he  still  says  that  in  good  years  the 
children  of  people  are  most  of  them  good,  while  in  bad 
years  the  most  of  them  abandon  themselves  to  evil.^  There- 
fore, the  human  nature  changes  to  either  good  or  evil  in 
accordance  with  the  economic  condition.  If  there  is  econo- 
mic prosperity  equally  distributed  to  everyone,  the  nature 
of  the  people  must  be  good.  Mencius  says :  "  When  a  sage 
governs  the  world,  he  will  cause  pulse  and  grain  to  be  as 
abundant  as  water  and  fire.  If  pulse  and  grain  are  as 
abundant  as  water  and  fire,  how  shall  the  people  be  other 
than  virtuous?"  '  Therefore,  if  we  shall  come  to  the  high- 
est development  of  the  economic  world,  we  shall  come  also 
to  the  highest  development  of  the  ethical  world.  The  former 
is  the  cause,  and  the  latter  is  the  effect.  Hence,  Confucius 
regards  economic  progress  as  the  means,  and  moral  per- 
fection as  the  end.  If  we  understand  this,  we  have  the 
general  view  of  his  theory  of  progress. 

Besides  economic  prosperity  as  a  general  condition,  Con- 
fucius has  a  special  device  for  changing  human  nature.  As 
we  have  seen,  Confucius  makes  universally  free  education 
a  necessary  institution;  it  is  really  a  most  important  force 
for  modifying  human  nature.  But  the  educational  system 
of  Confucius  begins  not  only  in  the  school  age  of  a  child, 

^Classics,  vol.  ii,  p.  404.  ^  Ibid.,  p.  463. 


ECONOMIC  DEVELOPMENT 


'^zy 


but  even  before  his  birth.  This  is  a  peculiar  doctrine  of 
Confucius,  and  it  is  known  as  gestatory  education. 

According  to  Elder  Tai's  Record  of  Rites,  the  first  thing 
in  gestatory  education  is  the  choice  of  the  mother.  There- 
fore, when  the  parents  choose  the  wife  of  their  son,  they 
must  select  her  from  among  those  families  which  have  had 
a  high  standard  of  morality  for  all  generations.  There  are 
five  women  who  are  not  to  be  taken  in  marriage:  (i)  the 
daughter  of  a  rebellious  house;  (2)  the  daughter  of  a  dis- 
orderly house;  (3)  the  daughter  of  a  house  which  has  pro- 
duced criminals  for  more  than  one  generation;  (4)  the 
daughter  of  a  leprous  house;  (5)  the  daughter  who  has  lost 
her  mother  and  has  grown  old.^ 

When  a  woman  is  pregnant,  the  rules  are  as  follows : 
While  sleeping,  she  should  lie  on  her  back;  while  sitting  or 
standing,  the  body  should  be  in  an  upright  position,  and  the 
weight  evenly  distributed.  She  should  not  laugh  too  loudly  ; 
nor  eat  food  of  bad  flavors,  nor  anything  which  is  not  cut 
properly ;  nor  sit  down  on  anything  which  is  not  placed  prop- 
erly. The  eyes  should  not  see  bad  colors,  the  ears  should 
not  hear  bad  sounds,  and  the  mouth  should  not  utter  bad 
words.  She  should  read  good  poetry,  and  tell  good  stories. 
By  this  means,  the  child  will  be  physically,  morally,  and 
mentally  excellent.  Whenever  a  woman  is  pregnant,  she 
must  be  very  watchful  in  regard  to  the  things  by  which 
the  mind  is  affecterl.  If  she  is  affected  by  good  things, 
the  child  will  be  good;  if  by  bad  things,  he  will  be  bad. 
These  are  the  rules  of  gestatory  education.  The  mothers 
of  Wen  Wang  and  of  Ch'eng  Wang  are  good  examples  of 
such  educators. 

When  a  child  is  born,  moreover,  he  receives  the  family 
education  for  a  long  time  before  he  goes  to  school.     There- 

'  I'k    Ixxx. 


138        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

fore,  Confucius  says :  ''  When  a  child  is  trained  completely," 
his  education  is  just  as  strong  as  his  nature;  and  when  he 
practices  anything  perpetually,  he  will  do  it  naturally  as  a 
permanent  habit."  ^ 

This  is  Confucius'  plan  for  changing  human  nature.  If 
every  generation  of  the  world  would  put  it  in  practice,  hu- 
man nature  would  soon  be  perfect.  It  is  the  same  principle 
as  that  man  should  control  nature  in  the  economic  world. 
Man  must  control  nature  not  only  without  him,  but  also 
within  him,  so  that  progress  will  be  complete  and  continuous. 

^  Bk.  xlviii. 


CHAPTER  X 
Economic  Organization 

I.    THE   whole  world  AS  THE  LARGEST  ORGANIZATION 

When  we  come  to  the  topic  of  economic  organization, 
we  must  say  that  according  to  the  view  of  Confucius,  there 
are  two  organizations.  The  one  is  the  largest — the  world ; 
the  other,  the  smallest — the  family.  As  Chinese  philosophy 
is  mostly  synthetical,  going  from  the  whole  to  the  part,  and 
as  world  economy  is  a  special  theme  of  Confucius,  we  shall 
take  up  the  largest  organization  first,  in  order  to  show  the 
economic  thought  of  Confucius  prominently  and  clearly. 

How  do  we  know  that  Confucius  regards  the  world  as 
an  economic  organization?  It  is  found  in  the  "Great 
Learning."  The  "  Great  Learning "  may  be  called  the 
catalogue  of  the  teachings  of  Confucius.  The  objects  of 
the  principles  of  the  "  Cireat  Learning"  are  three:  to 
brighten  the  brilliant  virtue,  to  renovate  the  people,  and  to 
rest  in  the  highest  excellence.  The  first  object  is  to  care 
for  the  individual  himself;  the  second  for  the  other  people 
as  a  whole;  the  third  is  the  perfect  state  which  forms  the 
goal  for  the  other  two  objects.  Having  understood  these  three 
objects,  we  now  come  to  its  eight  subjects:  (i)  the  in- 
vestigation of  things;  (2)  the  extension  of  knowledge; 
(3)  sincerity  of  thought;  (4)  composing  the  mind;  (5) 
the  cultivation  of  the  personality;  (6)  the  regulation  of  the 
family;  (7)  the  governing  of  the  state;  (8)  the  equaliza- 
tion of  the  wh(jle  world.  These  eight  subjects  are  taken 
step  by  step,  one  following  another;  yet  the  student  must 

139 


1^0        T'^P-  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

have  the  whole  world  in  view  from  the  beg-inning. 
Among  all  the  eight  subjects,  the  cultivation  of  the  person- 
ality is  the  root  of  everything.  From  this  point,  Confucius 
regards  the  individual  as  the  unit.  But  sincerity  of  thought 
is,  in  turn,  the  root  of  cultivating  the  personality. 

Having  understood  the  whole  outline  of  the  ''  Great 
Learning,"  we  come  now  to  see  how  Confucius  regards  the 
whole  world  as  an  economic  unit.  We  have  already  seen 
that  Confucius  ascribes  very  much  importance  to  economic 
life.  But,  in  the  "  Great  Learning,"  he  does  not  say  a  single 
word  about  economic  life  until  the  last  chapter — namely, 
the  equalization  of  the  whole  world.  It  is  not  for  the 
cultivation  of  the  personality,  not  for  the  regulation  of 
the  family,  not  for  the  governing  of  the  state,  but  for  the 
equalization  of  the  whole  world,  that  Confucius  gives  his 
economic  principles.  He  feels  that  the  whole  world  is  the 
economic  unit,  and  that  the  economic  life  can  never  be 
confined  to  any  particular  person,  family  or  state.  The 
student  can  never  study  economics  completely  unless  he 
takes  the  world  as  a  whole.  And  the  world  can  never 
be  equalized  unless  the  economic  life  of  the  whole  world  is 
equal.     This  is  a  special  concept  of  Confucius. 

The  economic  principles  given  in  the  "  Great  Learning" 
are  conspicuous  above  all  the  other  economic  principles  given 
in  other  Confucian  books.  The  reason  is  simply  that  the 
"  Great  Learning  "  simplifies  the  principles  for  equalizing 
the  world  into  only  two  things — namely,  employing  the  best 
men,  and  administering  wealth.  Hence,  everyone  knows 
that  a  part  of  the  "  Great  Learning  "  is  devoted  to  the  prin- 
ciples of  economics.  What  we  wish  to  emphasize  is,  how- 
ever, that  Confucius  has  the  world  economy  in  his  mind, 
and  that  he  thinks  about  the  world  as  an  economic  unit. 

But  we  must   understand   that   the   economic   principles 
of  the  *'  Great  Learning  "  are  very  general.     Although  they 


ECONOMIC  ORGANIZATION 


141 


are  given  in  the  chapter  on  the  equalization  of  the  world 
it  does  not  mean  that  they  are  fitted  only  for  world  economy. 
Indeed,  they  can  be  applied  to  either  a  person,  a  family,  or 
a  state. 

All  other  economic  principles  given  in  the  ''  Great  Learn- 
ing "  are  quoted  in  other  places,  and  we  shall  quote  here 
only  one,  the  fundamental  principle  of  world  economy ; — 
namely,  the  principle  of  reciprocity.  It  is  stated  in  a  meta- 
phorical sense  as  follows : 

What  you  do  not  like  above,  do  not  place  below ;  what  you  do 
not  like  below,  do  not  place  above ;  what  you  do  not  like  in 
front,  do  not  shift  to  the  back;  what  you  do  not  like  in  back, 
do  not  turn  to  the  front ;  what  you  do  not  like  on  the  right,  do 
not  bestow  on  the  left;  what  you  do  not  like  on  the  left,  do 
not  bestow  on  the  right ; — this  is  what  is  called  the  principle 
with  which  we  are,  as  with  a  measuring-square,  to  establish 
the  law  of  justice.^ 

The  principle  of  reciprocity,  as  stated  in  the  second  chap- 
ter, is  one  of  the  fundamental  concepts  of  Confucius.  But 
there  it  is  discussed  from  the  purely  moral  point  of  view. 
Here  we  must  consider  it  from  the  economic  and  political 
point  of  view.  The  principle  is  the  same,  but  its  applica- 
tion is  a  little  different.  Taking  this  principle  as  the  basis 
of  world  economy,  it  develops  commercial  policy  and  in- 
ternational law.  It  is  the  golden  rule  of  the  business  world, 
and  we  cannot  say  that  there  is  no  moral  standard  for 
politics  and  diplomacy. 

The  economic  system  of  Confucius  is  not  nationalism,  but 
cosmopolitanism.  Before  Confucius,  economic  theories 
were  mostly  like  the  doctrines  of  the  mercantile  school  and 
took  the  nation  as  the  unit.  The  chief  representative  was 
Kuan  Tzu,  who  was  the  most  successful  minister  for  the 

*  Classics,  vol.  i,  pp.  373-4. 


142        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

realization  of  mercantilism  and  of  state  socialism.  He  was 
the  first  one  to  have  a  complete  economic  system  which  we 
can  see  to-day.  But  we  have  no  room  to  deal  with  his 
economy,  and  the  only  reason  we  mention  him  is  to  contrast 
him  with  Confucius. 

I.  Doctrine  of  Peace 

The  most  important  principle  for  international  relations 
is  the  doctrine  of  peace.  This  doctrine  is  based  not  only 
on  the  principle  of  humanity,  but  also  on  that  of  utility. 
Confucius  says :  ''  Talking  about  sincere  agreement  and 
cultivating  universal  peace  are  what  are  called  the  advant- 
ages of  men.  Fighting,  plundering,  and  killing  each  other 
are  what  are  called  the  calamities  of  men."  '  In  the  Spring 
and  Autumn,  Confucius  records  about  four  hundred  wars 
within  the  period  of  two  hundred  and  forty-two  years,  and 
condemns  them  all,  for  war  is  contrary  to  the  principle  of 
humanity.  Therefore,  Mencius  says  that  in  the  Spring  and 
Autumn  there  are  no  righteous  wars.  He  holds  that  mili- 
tary force  is  used  only  as  a  punishment  by  the  supreme  au- 
thority to  its  subjects,  but  that  the  independent  states  have 
no  right  to  engage  in  such  punitive  war  against  one  another.^ 

For  the  condemnation  of  war,  Mencius  gives  many  pas- 
sages in  very  strong  language.     He  says : 

When  contentions  about  territory  are  the  ground  on  which 
they  fight,  they  slaughter  men  till  the  fields  are  filled  with 
them.  When  some  struggle  for  a  city  is  the  ground  on  which 
they  fight,  they  slaughter  men  till  the  city  is  filled  with  them. 
This  is  what  is  called  "  leading  on  the  land  to  devour  human 
flesh  ".  Death  is  not  enough  for  such  a  crime.  Therefore, 
those  who  are  skilful  in  fighting,  should  suffer  the  highest 
punishment.* 

^  Li  Ki,  bk.  vii,  p.  380. 

'  Classics,  vol.  ii,  p.  478.  '  Ibid.,  p.  305. 


ECONOMIC  ORGANIZATION 


^43 


He  says  again  :  ''  Those  who  say  that  we  can,  for  our  sover- 
eign, form  alliances  with  other  states,  so  that  our  battles 
must  be  successful,  are  nowadays  called  good  ministers,  but 
anciently  they  were  called  pests  of  the  people."  ^  Mencius 
also  calls  such  persons  the  destroyers  of  the  people."  More- 
over, he  condemns  not  only  the  ministers,  but  also  the  rulers. 
When  he  speaks  of  King  Hui  of  Liang,  who  to  gain  terri- 
tory, tore  and  destroyed  his  people  in  battle,  he  condemns 
him  as  brutal.^  Therefore,  according  to  the  principle  of 
Confucius,  there  is  no  absolute  justification  for  any  war; 
it  is  only  that  some  wars  are  relatively  better  than  others. 
Hence,  war  should  be  abolished. 

The  doctrine  of  peace  is  harmonious  with  economic 
principles.  First,  it  makes  the  life  of  man  more  valuable 
than  the  land.  In  the  Analects,  Confucius  attaches  the  chief 
importance  to  the  life  of  the  people:  even  food  ranks  only 
second.  In  the  Spring  and  Autumn,  he  condemns  those 
who  employ  the  people  in  a  bad  year  for  the  reparation  of 
an  old  house,  because  they  exploit  the  people  in  hard  labor. 
But  how  much  more  strongly  w(^uld  he  condemn  those  who 
injure  the  people?  And  how  much  more  strongly  still  would 
he  condemn  those  who  kill  the  people  in  war?  Generally, 
the  object  of  war  is  getting  land.  Rut,  getting  land  by 
sacrificing  numerous  lives  of  the  people  is  a  most  costly 
enterprise,  and  will  not  pay.  This  is  what  Mencius  calls 
sacrificing  what  is  really  dear  on  account  of  what  is  not  so 
dear.*  This  is  also  what  he  calls  "  leading  on  the  land 
to  flevour  human  flesh." 

Second,  it  makes  the  people's  production  continuous,  and 
their  consumption  satisfactory.  As  a  matter  of  fact,  war 
is  most  injurious  to  the  people,  although  it  may  give  a  use- 

^  Classics,  vol.  ii.   p.  44'-  *  Ibid.,  p.  4,^9. 

*  Ibid.,  pp.  477-^-  *lbid..  p.  478. 


144        ^^^  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

less  glory  to  the  ruler.  Mencius  describes  the  suffering  of 
the  people  on  account  of  war  as  follows :  "  The  rulers  of 
those  states  rob  their  people  of  their  time,  so  that  they  can- 
not plough  and  weed  their  fields  in  order  to  support  their 
parents.  Their  parents  suffer  from  cold  and  hunger. 
Brothers,  wives,  and  children  are  separated  and  scattered 
abroad."  ^  In  fact,  the  evils  of  w^ar  are  the  interruption  of 
production,  the  lessening  of  consumption  and  the  destruction 
of  the  family.    It  is  only  peace  that  can  cure  these  evils. 

Third,  it  saves  the  economic  waste  in  the  preparation  for 
war.  Confucius  condemns  not  only  actual  war,  but  also  the 
preparation  for  it.  Preparation  for  war  is  a  great  waste  of 
wealth,  and  a  heavy  burden  upon  the  people.  Therefore, 
the  doctrine  of  peace  is  based  partially  on  economic  prin- 
ciples. 

Abolishing  war  and  changing  the  military  society  into  an 
industrial  one  is  the  common  wish  of  Confucious  and  his 
best  pupil,  Yen  Yiian.  The  Park  of  Narratives''  tells  us 
that  when  Confucius  went  up  to  the  Nung  Mountain,  Tzu- 
lu,  Tzu-kung  and  Yen  Yiian  accompanied  him,  and  Con- 
fucius asked  them  each  to  tell  his  individual  wishes.  Tzu- 
lu  said  that  he  wished  to  raise  an  army  and  to  attack  the 
enemy,  so  that  he  was  sure  to  take  the  territory  for  a  thous- 
and miles.  Tzu-kung  said  that  he  wished  to  wear  a  white 
garment  and  a  white  cap  to  persuade  the  two  armies  under 
the  white  swords,  in  order  to  take  away  the  calamity  of  the 
two  nations.     Yen  Yiian  said : 

I  wish  to  have  a  wise  king  or  a  sage  ruler  and  to  become  his 
minister.  I  shall  cause  the  city  walls  to  have  no  need  to  be  re- 
paired, the  ditches  and  moats  to  have  no  foe  to  cross  over 
them,  and  the  swords  and  spears  to  be  melted  for  the  making 
of  agricultural  implements.     I  shall  cause  the  whole  world  to 

*  Classics,  vol.  ii,  pp.  135-6.  ^  Rk.  xv. 


ECONOMIC  ORGANIZATION 


145 


have  no  calamit}-  of  war  for  thousands  of  years.  Under  such 
a  condition,  how  can  Yu  go  to  fight  angrily?  And  how  can 
Tz'u  go  to  make  arbitration  cheerfully  ? 

Then  Tzu-lu  asked  what  the  wish  of  Confucius  was.  He 
said :  *'  What  I  wish  to  do,  is  the  plan  of  the  son  of  Yen. 
I  wish  to  carry  my  clothes  and  hats  and  to  follow  him." 
This  conversation  shows  clearly  the  common  wish  of  Con- 
fucius and  Yen  Yuan.  The  aim  of  Tzu-lu  is  but  that  of 
a  soldier;  that  of  Tzu-kung  is  but  that  of  a  diplomatist; 
but  that  of  Yen  Yiian  and  Confucius  is  that  of  the  highest 
statesmanship,  and  the  plan  of  a  sage.  The  most  im- 
portant sentence  is  ''  the  swords  and  spears  are  melted  for 
the  making  of  agricultural  implements."  Thus  one  would 
turn  the  instruments  for  killing  men  into  instruments  for 
nourishing  men,  and  change  the  soldiers  to  farmers;  in 
short,  the  military-  society  would  be  entirely  destroyed,  and 
an  industrial  society  would  be  universally  and  permanently 
established.     This  is  the  ideal  of  Confucius. 

The  evils  of  feudalism,  with  its  constant  wars,  impressed 
Confucius  profoundly,  and  led  him  to  the  vision  of  a  world- 
state  and  world-peace.  Plato's  ideal  state,  on  the  other 
hand,  is  a  small  city-state,  ever  ready  for  war.  The  spirit 
of  the  Chinese  people,  under  the  influence  of  Confucius' 
teachings,  is  such  that  they  are  more  nearly  ready  than 
any  western  people  for  the  realization  of  this  lofty  vision.^ 

II.    THE   FAMILY  AS  THE  SMALLEST  ORGANIZATION' 

While  the  whole  world  is  the  largest  economic  organiza- 
tion, the  family  is  the  smallest  one,  and  the  one  having 
closest  economic  relation  to  the  individual.  As  long  as 
there  is  a  family,  the  individual  never  can  make  his  economic 

*  In  the  second  book  of  Kang  Yu-wci's  Book  on  the  Great  Similarity, 
the  details  of  how  the  world  is  to  be  united  arc  given. 


1^6        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

life  absolutely  independent.  Therefore,  the  family  life  is 
very  important  in  affecting  the  economic  life.  Whenever 
we  use  the  term  family  we  mean  that  there  are  at  least  two 
generations,  although  the  principal  factor  of  production  is 
only  of  one  generation.  For  example,  a  family  means  hus- 
band and  wife.  But  it  may  have  either  old  parents,  or 
young  children,  or  both.  Hence,  it  may  include  three  gen- 
erations at  the  same  time.  But  in  any  case  it  must  have 
two  generations,  if  it  has  children.  Therefore,  we  may  con- 
sider the  family  as  an  economic  organization  from  two 
points  of  view, — namely,  the  relation  of  husband  and  wife, 
and  that  of  father  and  son. 

The  happy  life  of  the  family  in  Confucius'  mind  is  given 
in  the  "  Doctrine  of  the  Mean."  It  first  quotes  from  the 
Canon  of  Poetry,  as  follows  : 

Loving  union  with  wife  and  children, 

Is  like  the  music  of  lutes  and  harps ; 

When  there  is  concord   among  brothers, 

The  harmony  is  delightful  and  enduring. 

Thus  you  make  your  family  happy, 

And  enjoy  pleasure  with  your  wife  and  children. 

Then  it  quotes  from  Confucius,  who  gives  to  this  poem  the 
following  appreciation :  "  In  such  a  state  of  things,  parents 
have  entire  complacence!"  ^  The  poem  itself  mentions  only 
wife  and  children,  and  brothers.  But  Confucius  adds  to 
them  the  parents,  in  order  to  make  the  happy  life  of  the 
family  complete.  This  is  what  Confucius  thinks  a  happy 
family. 

I.  Relation  of  Husband  and  Wife 
According  to  the  social  system  of  Confucius,  the  relation 
of  husband  and  wife  is  the  starting-point.     He  always  puts 
the  matrimonial  significance  at  the  beginning  of  all  his  writ- 

^  Classics,  vol.  i,  pp.  396-7. 


ECOXOMIC  ORGANIZATION 


H7 


ings.  The  '*  Doctrine  of  the  Mean  ''  says :  "  The  way  of 
the  superior  man,  [Confucius],  is  beginning  with  its  course 
from  the  relation  of  husband  and  wife.  But  in  its  utmost 
reaches  it  shines  brightly  through  heaven  and  earth."  ^ 

(a)  Marriage 

It  is  well  known  to  the  Western  world  that  marriage  in 
China  is  a  matter  arranged  primarily  by  the  parents  of  the 
parties,  and  through  the  services  of  a  go-between.  This 
was  an  old  custom,  and  it  is  in  accordance  with  the  teach- 
ings of  Confucius.  It  has,  of  course,  the  disadvantage  that 
the  contracting  parties  cannot  be  sure  in  advance  that  they 
are  perfectly  suited  to  each  other.  It  is  not  the  practice, 
however,  for  parents  to  disregard  the  wishes  of  their  chil- 
dren in  these  matters.  These  marriage  customs  are  a  neces- 
sary consequence  of  the  Chinese  custom  which  forbids  social 
intercourse  between  the  sexes  prior  to  marriage — the  ob- 
vious reason  for  which  is,  of  course,  to  prevent  not  alone 
any  improper  relations,  but  even  the  suspicion  of  them.  In 
China  there  is  no  marriage  license  and  no  church  to  take 
charge  of  the  ceremony.  The  parents'  order  takes  the  place 
of  the  license,  and  the  go-between  takes  the  place  of  the 
minister  or  justice  of  the  peace. 

The  ninth  book  of  the  Record  of  Rites  says  :  "  Once  mated 
with  her  husband,  all  her  life  she  will  not  change  her  feel- 
ing of  duty  to  him ;  hence,  when  the  husband  dies  she  will 
not  marry  again."  "  This  is  the  ideal  of  marriage.  Rut, 
at  the  death  of  her  husband,  if  her  age  is  below  fifty,  and 
that  of  her  son  below  fifteen,  and  he  has  no  close  relatives 
on  his  father's  side  to  take  the  economic  resjMinsibility.  the 
widow  may  marry  again.  Therefore,  according  to  the 
Ciiiinu  of  Rites,  a  step-son  should  mourn  for  his  step-father, 

'  Classics,  vol    i,  p.  303. 
'  /  /  Ki,  bk.   ix.  \t.  4.^9. 


148        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

who  is  the  second  husband  of  his  mother/  The  fact  that 
Confucius  allows  the  woman  to  marry  a  second  husband 
under  some  circumstances  shows  the  practicality  of  Con- 
fucianism. It  is  Ch'eng  Yi  (1584- 1658  A.  K.  or  1033- 
1107  A.  D.)  who  first  says  that  a  woman  should  not  marry 
a  second  husband,  even  if  she  should  die  in  hunger.  But 
this  is  not  the  teaching  of  Confucius. 

(b)  Divorce 

Having  understood  the  proceeding  of  marriage,  we  now 
come  to  the  subject  of  divorce.  According  to  Elder  Tai's 
Record  of  Rites,  there  are  seven  grounds  for  divorcing  a 
wife:  (i)  disobedience  to  parents-in-law;  (2)  not  giving 
birth  to  a  son;  (3)  adultery;  (4)  jealousy  of  her  husband's 
attentions,  that  is,  to  the  other  inmates  of  his  harem;  (5) 
leprosy;  (6)  talkativeness;  (7)  thieving.  But  there  are 
three  considerations  which  may  overrule  these  grounds: 
(i)  having  no  family  for  her  return;  (2)  having  passed 
through  the  three  years'  mourning  for  his  parents;  (3)  his 
condition  formerly  poor  and  mean,  and  now  rich  and  honor- 
able.^ But  these  rules  are  entirely  applied  only  to  the  classes 
of  the  great  officials,  the  students,  and  the  common  people. 
The  prince  can  divorce  his  wife  on  six  other  grounds,  but 
not  because  she  has  no  son.  And  the  emperor  cannot 
divorce  the  empress  on  any  ground,  but  simply  separates 
from  her.  These  rules  are  adopted  even  in  the  Law  Code 
of  the  Ts'ing  Dynasty,  the  present  dynasty. 

Because  the  emperor,  the  prince,  and  also  the  great  offi- 
cials, have  not  so  much  freedom  of  divorce  as  those  below 
them,  they  do  not  consummate  the  marriage  upon  the  date 
of  marriage.  When  the  wife  comes  in,  she  lives  apart  from 
the  husband.  After  the  period  of  three  months,  she  is  pre- 
sented to  the  ancestral  temple,  and  begins  to  be  called  wife. 

'  Ch.  xxxi.  «  Bk.  Ixxx. 


ECONOMIC  ORGANIZATION 


149 


This  period  is  just  long  enough  for  the  examination  into 
her  character  and  for  her  special  training.  If  the  parents- 
in-law  and  husband  cannot  get  along  with  her,  she  can  re- 
turn to  her  family  a  virgin,  and  can  marry  another  without 
any  trouble.  This  is  for  the  benefit  of  both  sides,  although 
the  men  get  more  advantage.  But  the  student  and  the  com- 
mon people  have  more  freedom  of  divorce,  so  that  they  con- 
summate the  marriage  the  same  night.  This  was  an  old 
custom. 

As  to  the  third  reason  for  the  prohibition  of  divorce,  that 
one  should  not  divorce  his  wife  if  his  condition  formerly 
was  poor  and  mean,  and  is  now  rich  and  honorable,  this 
provision  is  very  just.  But,  as  a  matter  of  fact,  divorce  is 
generally  caused  by  economic  conditions.  In  the  Canon  of 
Poetry,  there  is  a  poem  against  the  corrupt  custom  of 
divorce.  The  people  of  Wei  loved  new  wives  and  aban- 
doned the  old  ones.  Therefore,  the  poet,  speaking  for  the 
divorced  wives,  made  this  a  subject  for  satire.  We  should 
like  to  quote  a  few  lines  of  this  poem,  which  refer  to  the 
economic  aspect  of  the  affair. 

Whether  you  had  plenty  or  not, 

I   exerted  myself  to  be  getting. 

*  41  41  «  «  *  ♦ 

Formerly,  I  was  afraid  our  means  might  be  exhausted  during  our  old 

age, 
And  I  worked  hard  with  you  in  the  struggle  for  existence. 
Now  when  your  means  are  abundant  and  you  are  old, 
You  compare  me  to  poison. 

Feasting  with  your  new  wife, 

You  think  of  me  as  a  provision  only  against  your  poverty.^ 

Disapproving  such  a  divorce,  Confucius  puts  this  poem  in 
this  Canon  to  serve  as  a  warning. 

'  Classics,  vol.   iv.  pt.  i.  pp.  55-8. 


1 50        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

It  is  true  that,  in  the  Confucian  writings,  there  is  no 
statement  about  divorce  issued  to  the  woman.  Though  this 
is  not  wholly  just,  in  a  paternal  society  it  must  be  so.  In 
ancient  time,  the  Disorderly  Stage,  if  woman  should  be  al- 
lowed to  have  the  right  to  divorce  her  husband,  the  paternal 
family  could  not  be  established,  and  social  life  would  be  dis- 
orderly. This  is  the  reason  a  woman  cannot  divorce  her 
husband.  Han  Fei  Tzii,  however,  speaks  of  T'ai  Kung  as  a 
divorced  husband  of  an  old  woman.  This  shows  that  in 
ancient  times,  even  long  before  Confucius,  a  woman  did 
have  the  right  to  divorce  her  husband.  It  might  have  been 
that  a  woman  could  divorce  her  husband  if  her  husband 
agreed  to  it,  but  that  there  was  no  legal  ground  for  her 
doing  so.  The  Law  Code  of  the  Ts'ing  Dynasty  says 
that  if  the  husband  and  wife  are  not  harmonious  and  both 
wish  to  be  separated,  they  may  be  allowed  to  do  so.^ 
Therefore,  in  the  present  day,  the  woman  is  legally  allowed 
to  divorce  her  husband,  with  his  consent. 

However,  when  we  say  that  the  Confucian  writings  have 
no  statement  about  divorce  issued  to  the  woman,  we  are  sim- 
ply referring  to  the  ordinary  case.  If  in  the  unusual  case, 
a  woman  shall  have  the  absolute  right  to  divorce  her 
husband.  The  General  Discussion  in  the  White  Tiger 
Palace  says :  "  If  the  husband  should  either  violate  the  so- 
cial relations,  or  kill  his  parents-in-law,  or  break  down  the 
most  important  laws,  it  would  be  the  greatest  of  disorder. 
In  such  cases,  the  ethical  relation  between  husband  and  wife 
is  cut  off,  and  the  wife  may  divorce  her  husband."  ^  Ac- 
cording to  the  Law  Code  of  the  Ts'ing  Dynasty,  whenever 
the  ethical  relation  between  husband  and  wife  is  cut  off, 
they  must  be  separated,  and  are  not  permitted  to  remain  in 
union.     From  this  point,  we  can  see  that  the  Chinese  re- 

'  Ch.  X.  '  Bk.  X. 


ECONOMIC  ORGANIZATION 


151 


gard  the  ethical  relation  as  very  important,  and  that  the 
husband  and  wife  cannot  remain  in  union,  even  though  they 
love  each  other. 

The  Chinese  consider  the  marriage  tie  as  very  strong,  and 
continue  it  through  the  whole  life.  Although  their  mar- 
riages are  not  directly  arranged  by  themselves,  husbands 
and  wives  love  each  other  and  do  not  get  divorces.  The 
fundamental  reason  is  that  they  have  a  habit  of  bearing 
moral  obligations  for  which  they  sacrifice  their  sentimental 
feelings.  Second,  they  accept  the  philosophical  doctrine  of 
fate,  and  content  themselves  on  the  ground  that  their  mar- 
riage had  been  predestined.  Third,  their  social  condition 
does  not  allow  either  husband  or  wife  to  have  any  sweet- 
heart beside  the  other.  These  are  the  most  important  rea- 
sons why  the  Chinese  have  very  few.  practically  no,  divorces. 
And  we  must  understand  that  the  Chinese  are  not  concerned 
with  formal  law  at  all,  when  they  either  marry  or  divorce, 
but  merely  with  the  rites  prescribed  by  religion  and  cus- 
tom. Yet  they  keep  their  marriages  sacred,  and  make  them 
even  stronger  than  if  they  were  fixed  by  law.  At  the  pres- 
ent day,  there  is  practically  no  divorce,  unless  in  the  case  of 
adultery ;  and  such  cases  are  rare. 

(c)  Economic  Position  of  Woman 

Since  we  have  discussed  above  the  social  position  of  wo- 
man, we  should  now  discuss  her  economic  position,  in 
which  we  are  especially  interested.  Inside  the  family, 
the  housewife  is  the  chief  worker.  First  of  all,  she  must 
care  for  the  children.  The  **  Great  Learning  "  says :  "  There 
never  has  been  a  girl  who  learned  to  nourish  a  child,  that 
she  might  afterwards  marry."  '  This  implies  that  every 
married  woman  must  know  how  to  nourish  a  child  without 
special   training,   and   that    it    is  a   duty  of   woman.       Tlie 

*  Classics,  vol.  i.  p.  370. 


1-2        7"//£  ECOXOMIC  PRINCIPLES  OF  CONFUCIUS 

"  Pattern  of  the  Family  "  says:  "  The  son  of  the  great  offi- 
cial has  a  nurse.  The  wife  of  the  student  nourishes  her 
child  herself."  ^  Therefore,  the  wives  of  students  and  com- 
mon people  must  nourish  their  own  children,  although  the 
empress,  the  princess,  and  the  noble  ladies  may  hire  nurses. 
This  is  the  chief  work  of  woman. 

Second,  she  must  take  charge  of  the  food.  The  Canon 
of  Poetry  says :  ''  It  will  be  hers  neither  to  do  wrong  nor 
to  do  good.  Only  about  the  spirits  and  the  food  will  she 
have  to  discuss."  ^  The  Canon  of  Changes  says :  "  She  does 
nothing  of  her  own  initiative,  but  stays  at  home  for  the 
preparation  of  food."  ^  These  two  passages  are  sufficient 
to  indicate  the  principal  work  of  the  housewife. 

Third,  she  must  take  charge  of  the  clothes.  According 
to  the  '*  Pattern  of  the  Family,"  when  a  girl  reaches  the  age 
of  ten,  she  ceases  to  go  out  from  the  home.  Her  governess 
teaches  her  to  handle  the  hempen  fibres,  to  deal  with  the 
cocoons,  to  weave  silks  and  form  fillets,  and  to  learn  all 
woman's  work  in  order  to  furnish  garments.* 

In  ancient  times,  all,  from  the  empress  to  the  wives  of 
the  common  people,  had  to  make  clothes  for  their  husbands. 
The  Record  of  Rites  tells  us  that  the  emperor  must  be  per- 
sonally a  farmer,  and  the  empress  a  weaver.  This  has  three 
significances :  First,  it  indicates  religious  piety,  because  the 
emperor  and  empress  personally  furnish  the  materials  for 
the  food  and  clothes  used  for  sacrifices.  Second,  it  indi- 
cates political  democracy,  because  it  makes  the  emperor  and 
empress  not  entirely  different  from  the  farmer  and  weaver. 
Third,  it  indicates  economic  productivity,  because  it  makes 
even   the   emperor   and   empress   profluce  material   things.. 

'  Li  Ki,  bk.  x,  p.  476. 

'  Classics,  vol.  iv,  pt.  ii,  p.  307. 

'  Vi  King,  p.   137. 

*  Li  Ki,  bk.  X,  p.  479. 


ECONOMIC  ORGANISATION 


i53 


There  is  a  silk-worm's  house.  From  the  washing  of  the 
seeds  in  the  stream,  gathering  of  the  leaves  from  the  mul- 
berry trees,  feeding  the  worms,  to  the  presenting  of  the 
cocoons  to  the  empress,  all  the  processes  of  work  are  done 
by  the  honorable  ladies.  Then  the  empress  rinses  some  of 
them  thrice  in  a  vessel,  begins  to  unwind  them,  and  distri- 
butes them  to  the  honorable  ladies  to  complete  the  unwind- 
ing. After  the  dyeing  and  embroidering  have  been  finished, 
garments  are  made  for  use  in  sacrifices.^  This  custom 
still  exists  to-day.  In  the  Canon  of  Poetry,  there  is  a  poem 
directed  against  the  Emperor  \\.\  and  his  wife.  In  criticism 
of  his  wife,  it  says  that  she  leaves  her  silkworms  and  weav- 
ing.^ Since  even  an  empress  must  take  up  the  work  of 
silkworm  culture  and  weaving,  it  goes  without  saying  that 
the  women  in  general  must  take  charge  of  the  clothes. 

In  order  to  show  that  woman  is  in  an  honorable  position 
which  is  equal  to  that  of  her  husband,  here  is  a  good  ex- 
ample. Though  we  have  seen  that  the  preparation  of  food 
is  the  principal  work  of  woman,  still  this  does  not  mean  that 
she  is  a  slave  in  the  kitchen.  One  chief  function  of  food  is 
for  religious  sacrifices,  and  in  such  sacrifices  the  wife  par- 
ticipates in  the  ceremonies  with  her  husband.  Because  they 
are  both  equal  in  the  family,  they  both  sacrifice  to  the 
ancestor.  When  a  girl  of  ten.  she  watches  the  sacrifices, 
supplies  the  liquors  and  sauces,  fills  the  various  stands  and 
dishes  with  pickles  and  brine,  and  assists  in  setting  forth  the 
appurtenances  for  the  ceremonies.'  Such  an  education  is 
simply  for  the  duty  of  a  housewife.  But.  if  a  housewife 
is  required  to  take  part  with  her  hu.sband  in  sacrifice  to  his 
ancestor,  how  honorable  is  her  position! 

'  I.i  Ki.  hk.  xxi,  pp.  223-4. 

'  Classics,  vol.  iv.  pt.  ii,  p.  562. 

'  ft   Ki.  bk.  X.  p.  479. 


154        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

There  is  a  Confucian  principle  giving  respect  to  woman. 
This  principle  is  clearly  indicated,  as  we  have  seen,  in  the 
ceremony  of  the  personal  receiving  of  the  bride.  But  there 
is  another  example  which  illustrates  the  respect  for  woman 
in  regard  to  her  economic  position.  According  to  Con- 
fucianism, although  a  woman  should  work  for  the  family, 
she  should  be  treated  nicely,  and  should  not  be  employed 
only  for  financial  gain.  Therefore,  when  a  woman  is 
married,  she  need  not  take  up  any  household  work  until 
the  end  of  three  months.  If  her  husband  causes  her  to 
work  within  this  period,  it  seems  cruel  to  Confucius.  In 
the  Canon  of  Poetry,  there  is  a  poem  directed  against  a 
man  of  the  official  family,  who  makes  his  wife  sew  within 
the  period  of  three  months.     It  reads  as  follows : 

Shoes  thinly  woven  of  the  dolichos  fibre 

May  be  used  to  walk  on  the  hoarfrost. 

The  delicate  fingers  of  a  bride 

May  be  used  in  making  clothes. 

Putting  the  waistband  to  his  lower  garment  and  the  collar  to  his  upper, 

The  beautiful  woman  fixes  them. 

The  beautiful  woman  moved  gracefully, 

And  politely  stood  aside  to  the  left    [when  she  just  came  into  the 

family]  ; 
From  her  girdle  hung  her  ivory  comb-pin. 
But  it  is  the  narrow-mindedness  [of  her  husband], 
Which  makes  the  subject  for  satire.^ 

This  poem  describes  the  woman  beautiful  in  every  way,  as 
a  contrast  to  the  work  of  making  clothes,  and  it  censures 
expressly  the  mean  character  of  her  husband.  It  serves 
as  an  example  to  indicate  that  Confucius  regards  the  house- 
wife as  in  a  respected  position. 

Since  the  wife  is  equal  to  her  husband,  and  husband  and 
wife  are  considered  to  be  one  body,  she  shares  all  the  various 

^  Cf.  Classics,  vol.  iv,  pt.  i,  pp.   163-4. 


ECONOMIC  ORGANIZATION 


155 


conditions  with  her  husband.  Even  though  she  may  have 
no  title  of  her  own,  she  holds  the  title  of  her  husband.  And, 
in  all  social  positions,  she  takes  her  seat  according  to  the 
rank  of  her  husband.' 

Regarding  the  ownership  of  property,  the  ownership  of 
woman  is  included  in  the  name  of  her  husband.  If  her 
husband  is  dead  and  she  has  no  son,  she  may  succeed  to 
the  property  of  her  husband,  or  may  sell  it  for  her  support, 
if  she  is  poor.  If  she  marries  a  second  husband,  the  prop- 
erty of  her  former  husband  and  her  dower  should  belong 
to  the  family  of  her  former  husband,  and  she  cannot  take 
them  away.  These  are  stated  in  the  Law  Code  of  the 
Ts'ing  Dynasty.'^  But,  according  to  the  recent  commercial 
law  (2454  A.  K.  or  1903  A.  D.).  a  wife,  or  a  daughter 
above  the  age  of  sixteen,  may  be  a  merchant  and  may  use 
her  own  name  to  own  the  business.  A  wife  or  a  daughter, 
however,  must  register  as  a  merchant  either  directly  or  in- 
directly in  the  Department  of  Commerce  in  Peking  (now 
the  Department  of  Agriculture,  Industry  and  Commerce)  ; 
and  a  wife  must  also  get  the  written  consent  of  her  husband, 
while  he  still  cannot  relieve  himself  from  liability. 

2.   Relation  of  Father  and  Son 

(a)  The  Love  for  the  Same  Kind 

The  relation  between  father  and  son  is  the  strongest  tie 
of  Chinese  society,  and  it  is  the  basis  of  Confucius'  philo- 
sophy and  religion.  This  relation  is  fixed  by  birth,  so  that 
the  love  between  father  and  son  is  quite  natural,  without 
any  other  consideration.  But  there  is  one  thing  which 
causes  such  a  love  and  which  is  independent  of  the  blood 
relationship: — namely,  "  the  love  for  the  same  kind."  The 
Record  of  Rites  says:  "All  living  creatures  between  heaven 

'  /-;  Ki,  bk.  ix.  p    441.  '  Ch.   viii. 


136        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

and  earth,  being  endowed  with  blood  and  breath,  have  a 
certain  amount  of  knowledge.  Possessing  that  amount  of 
knowledge,  there  is  not  one  of  them  but  knows  to  love  its 
own  kind."  ^  The  love  for  kind  is  a  feeling  common  to  all 
creatures,"  and  man  especially  develops  such  a  feeling  to  a 
great  extent.  This  is  the  foundation  upon  which  human 
society  is  built.  Of  course,  when  parents  give  birth  to  a 
son,  they  love  him.  But  why  do  they  do  so?  It  is  not 
merely  because  he  is  their  product,  but  also  because  he  is  of 
the  same  kind  with  them.  Among  different  sons,  the 
father  will  love  the  one  most  who  is  most  similar  to  him- 
self, and  that  one  who  is  least  similar  he  will  love  least. 
Indeed,  the  degree  of  his  love  given  to  his  sons  is  according 
to  the  degree  of  similarity  which  they  show  to  him.  In  the 
case  of  a  step-son,  although  he  is  not  the  child  of  the  father, 
the  father  will  love  him,  if  he  is  similar  to  him.  In  fact, 
the  love  for  the  same  kind  is  the  basis  of  the  relation  be- 
tween father  and  son.  And  the  one  who  can  extend  such  a 
feeling  and  love  all  of  mankind,  is  called  a  man  of  great 
filial  piety.  The  Canon  of  Poetry  says :  "  The  love  of  a 
filial  son  can  never  be  exhausted;  it  is  given  to  your  same 
kind  for  ever."  ^ 

(b)  Doctrine  of  Filial  Piety 

Taking  such  a  natural  love  as  the  basis,  Confucius  es- 
tablishes the  doctrine  of  filial  piety,  a  doctrine  that  has  much 
to  do  with  economic  life.  In  the  Canon  of  Filial  Piety,  he 
thus  sums  up  the  duties  of  a  son : 

The  service  which  a  filial  son  renders  his  parents  is  as  follows : 

'  Li  Ki,  bk.  xxxv,  p.  392. 

2  Confucius'  conception  is  very  closely  kin  to  Professor  Giddings'  con- 
ception of  "  the  consciousness  of  kind." 
^  Cf.  Classics,  vol.  iv,  pt.  ii,  p.  477. 


ECONOMIC  ORGANIZATION 


157 


In  his  general  conduct  to  them,  he  manifests  the  utmost  rev- 
erence; in  his  nourishing  of  them,  his  endeavor  is  to  give 
them  the  utmost  pleasure ;  when  they  are  ill,  he  feels  the 
greatest  anxiety ;  in  mourning  for  them  dead,  he  exhibits  every 
demonstration  of  grief ;  in  sacrificing  to  them,  he  displays  the 
utmost  solemnity.  When  a  son  is  complete  in  these  five  things, 
he  may  be  pronounced  able  to  serve  his  parents.^ 

In  the  Canon  of  Filial  Piety,  there  are  five  chapters  de- 
scribing respectively  the  different  duties  among  the  live 
classes, — namely,  the  emperor,  the  princes,  the  great  offi- 
cials, the  students,  and  the  common  people.  It  is  the  last 
chapter  of  the  five  that  interests  us  especially.  Although  it 
is  an  ethical  teaching  of  Confucius,  it  is  really  of  great  econo- 
mic significance.  He  says :  *'  They  follow  the  course  of 
heaven  in  the  revolving  seasons,  they  distinguish  the  ad- 
vantages afforded  by  different  soils,  they  are  careful  of  their 
conduct,  and  they  are  economical  in  their  expenditure,  in 
order  to  support  their  parents :  this  is  the  filial  piety  of  the 
common  people."  "  It  is  very  interesting  to  see  that  Con- 
fucius identifies  the  filial  piety  of  the  common  people  with 
economic  efficiency.  The  first  two  phrases  refer  to  pro- 
duction, and  the  last  two  to  consimiption.  Although  the 
third  phrase  is  mixed  with  an  ethical  element,  it  is  a  pro- 
vision for  the  control  of  personal  expenditure,  because  to  be 
careful  for  the  conduct  means  a  moral  control  of  material 
wants.  Therefore,  if  a  man  among  the  common  people  is 
diligent  in  production  and  frugal  in  consumption  for  the 
support  of  his  parents,  it  suffices  to  make  him  a  filial  son. 
This  is  the  type  for  the  farmer. 

Among  all  the  pupils  of  Confucius,  Ts'cng  Tsu  is  the 
chief  representative  of  filial  piety.     He  says:  "There  nre 

'  Sacred  Books  of  the  Hast.  vol.  iii.  p.  480. 
'  Ibid.,  pp.  47 '-2. 


158        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

three  degrees  of  filial  piety.  The  highest  is  to  honor  our 
parents ;  the  second  is  not  to  disgrace  them ;  and  the  lowest 
is  to  be  able  to  support  them."  Again  he  says:  "  To  pre- 
pare the  fragrant  flesh  and  grain  which  he  has  cooked, 
tasting  and  then  presenting  them  before  his  parents,  is  not 
filial  piety,  it  is  only  nourishing  them."  Yet  he  says  that 
the  fundamental  lesson  for  all  is  filial  piety,  and  the  prac- 
tice of  it  is  seen  in  the  support  of  parents.^  Therefore,  al- 
though the  support  of  parents  is  the  lowest  type  of  filial 
piety,  it  is  a  necessary  step.  There  may  be  some  who  can- 
not be  called  filial  sons,  because  they  can  only  support  their 
parents,  but  there  never  has  been  anyone  who  could  be  called 
a  filial  son  without  fulfilling  the  duty  of  supporting  his  par- 
ents. Based  on  such  ethical  and  social  teachings,  the  chief 
economic  burden  of  the  Chinese  is  the  support  of  parents. 

Since  all  these  teachings  are  in  the  positive  form,  let  us 
now  consider  the  support  of  parents  on  the  negative  side. 
When  Mencius  enumerates  the  five  things  which  are  pro- 
nounced in  common  usage  to  be  unfilial,  the  first  four  out 
of  the  five  are  economic.  The  first  is  laziness  in  the  use  of 
one's  four  limbs,  without  attending  to  the  support  of  one's 
parents.  The  second  is  gambling  and  chess-playing,  and 
being  fond  of  wine,  without  attending  to  the  support  of 
one's  parents.  The  third  is  being  fond  of  commodities  and 
money,  and  selfishly  attached  to  wife  and  children,  without 
attending  to  the  support  of  one's  parents.  The  fourth  is 
following  the  desires  of  one's  ears  and  eyes,  so  as  to  bring 
one's  parents  to  disgrace.  The  fifth  is  being  fond  of 
bravery,  fighting  and  quarreling,  so  as  to  endanger  one's 
parents.  Among  the  first  four  things  which  are  economic, 
the  first  refers  to  production,  the  second  and  the  fourth, 
to  consumption ;  and  the  third,  to  distribution.   To  sum  them 

^  Li  Ki,  bk.  xxi,  pp.  226-7. 


ECONOMIC  ORGANIZATION 


159 


up  in  a  word,  what  the  Chinese  call  iinfilial  is  failure  to 
attend  to  the  support  of  parents  on  account  of  any  one  of 
these  five  causes. 

The  third  of  the  five  unfilial  things  has  a  great  signifi- 
cance. In  China,  the  son  must  support  his  parents  first; 
and  his  wife  and  children  are  regarded  as  secondary,  be- 
cause the  parents  are  much  more  to  be  respected.  It  is 
true  that  the  parents  never  want  to  sacrifice  their  daughter- 
in-law  or  grandson  for  their  own  sake,  and  that  they  usually 
do  sacrifice  themselves  for  them.  But  the  Chinese  think 
they  ought  to  care  for  parents  first.  In  the  first  place,  they 
cannot  work  very  well :  and  even  though  they  can  work, 
they  ought  to  be  given  a  rest,  because  they  have  worked  for 
a  long  time.  In  the  second  place,  they  cannot  live  very 
long,  so  that  a  son  ought  to  discharge  his  filial  duty  as 
soon  as  possible,  othenvise  in  no  way  can  he  pay  oflf  his 
moral  debt. 

The  most  conspicuous  fact  which  marks  the  difference 
between  China  and  the  West  is  that  the  Chinese  regard 
their  parents  above  their  wives  and  children,  and  the  people 
of  the  West  regard  their  wives  above  anything  else.  In  a 
word,  China  emphasizes  the  relation  between  father  and  son, 
while  the  West  emphasizes  that  between  husbanrl  nad  wife. 
This  is  the  fundamental  difference  which  causes  many  other 
differences  in  the  social  and  economic  life.  Such  a  differ- 
ence not  only  is  found  in  modern  times,  but  also  existed  in 
ancient  times.  It  is  the  chief  antagonistic  point  between  Con- 
fucianism and  Christianity.  .Although  the  fifth  of  the  Ten 
Commandments  say,  "  Honor  thy  father  and  thy  mother,"  ^ 
Genesis  says,  "A  man  shall  leave  his  father  and  his  mother, 
and  shall  cleave  unto  his  wife."  ^  Jesus  '  and  Paul  *  repeat 
the  same  words,  commending  them.     Hence,  it  has  become 

'  Exodus  20 :  12.  '  Genesis  2  :  24. 

*  Matthetv  !Q:5-  *  lithesiatis  5:.V. 


l6o        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

the  fundamental  basis  of  western  society.  Whenever  the 
son  marries  a  wife,  he  leaves  his  parents  and  cleaves  to  her 
only.  x-\s  soon  as  the  relation  between  husband  and  wife 
begins,  the  relation  between  father  and  son  becomes  less 
important. 

As  human  nature  is  everywhere  about  the  same,  the 
Chinese  do  not  love  their  parents  mqre  than  the  western 
people,  and  the  western  people  do  not  love  their  wives  more 
than  the  Chinese.     Mencius  says : 

The  desire  of  a  child  is  towards  his  father  and  mother.  When 
he  becomes  conscious  of  the  attractions  of  beauty,  his  desire 
is  towards  young  and  beautiful  women.  When  he  comes  to 
have  a  wife  and  children,  his  desire  is  towards  them.  .  .  . 
But  the  man  of  great  filial  piety,  to  the  end  of  his  life,  has  his 
desire  towards  his  parents.^ 

Therefore,  a  man  turns  his  heart  away  from  his  parents 
not  only  when  he  marries,  but  also  when  he  becomes  con- 
scious of  the  attractions  of  beauty.  There  is  no  need  to 
teach  a  man  to  leave  his  father  and  his  mother,  and  to  cleave 
unto  his  wife,  because  this  is  his  strongest  passion.  Even 
in  China,  there  is  always  a  tendency  this  way.  But,  by  the 
teachings  of  Confucius,  this  natural  passion  is  controlled 
by  the  ethical  doctrine.  Hence,  it  has  become  the  general 
spirit  of  the  Chinese  that  they  should  support  their  parents 
first  and  above  the  support  of  their  wives  and  children. 
This  is  the  fundamental  point,  marking  the  differences  be- 
tween China  and  the  West. 

Accepting  the  teachings  of  Confucius,  the  Chinese  embody 
them  in  their  laws.  In  the  Law  Code  of  the  Ts'ing 
Dynasty,  there  is  a  provision  that  those  who  purposely  do 
not  give  sufficient  support  to  their  grandparents  or  parents 
shall  be  punished  with  one  hundred  blows  with  the  long 

*  Classics,  vol.  ii,  p.  345. 


ECONOMIC  ORGANIZATION  l6l 

Stick.  For  the  infliction  of  this  punishment,  however,  the 
complaint  must  be  lodged  by  the  grandparents  or  parents. 
If  a  son,  who  is  poor,  but  who  does  not  work  for  the  mak- 
ing of  a  living  and  for  the  support  of  his  parents,  causes 
his  parents  to  resort  to  suicide,  he  shall  be  punished  with  one 
hundred  blows  with  the  long  stick,  and  shall  be  exiled  for 
the  distance  of  three  thousand  miles  from  home.^  If  the 
age  of  his  grandparents  or  parents  is  above  eighty,  or  they 
have  severe  sickness,  and  there  is  no  other  son  attending  to 
them,  the  son  or  grandson  shall  not  leave  them  at  home  and 
go  to  take  official  employment  in  another  place.  If  he  does 
so,  he  shall  be  punished  with  eighty  blows  with  the  long 
stick,  and  compelled  to  go  home  for  the  support  of  his 
parents.^  Even  among  criminals,  under  certain  conditions, 
one  may  be  saved  from  capital  punishment  or  from  exile,  for 
the  support  of  his  grandparents  or  parents.''  Therefore, 
the  support  of  parents  is  a  positive  institution,  which  is  es- 
tablished not  only  by  the  moral  law,  but  also  by  the  legal  law. 

According  to  the  regulations  of  the  present  day,  when 
a  filial  daughter  whose  parents  have  neither  son  nor  grand- 
son, serves  them  till  their  death,  remaining  unmarried  for 
that  purpose,  she  shall  be  honored  as  the  filial  sons ;  e.  g.,  an 
arch  shall  be  built  for  her  in  her  locality,  and  her  name  shall 
be  dedicated  in  the  ''  Temple  of  Faithfulness,  Righteousness, 
Filiality  and  Fraternity,"  etc.  Therefore,  although  a  daugh- 
ter is  not  compelled  to  support  her  parents  by  the  punitive 
law,  she  is  encouraged  to  do  so  by  the  honorary  reward. 

In  the  Principle  of  Population,  the  first  edition,  Malthus 
does  not  approve  the  Chinese  law  which  requires  that  a  son 
support  his  aged  and  helpless  parents.  He  says:  "  It  seems 
at  any  rate  highly  improper,  by  positive  institutions,  which 
render  dependent  poverty  so  general,  to  weaken  that  dis- 

*  Ch.  XXX.  *Ch.  xvii.  'Ch.  iv. 


1 62        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

grace,  which  for  the  best  and  most  humane  reasons  ought 
to  attach  to  it."  ^  His  argument  is  true.  But  he  looks  only 
at  the  side  of  parents,  and  not  at  the  side  of  children.  Ac- 
cording to  the  view  of  the  Chinese,  they  may  say  that,  while 
the  parents  should  maintain  their  economic  independence, 
the  sons  should  nevertheless  support  their  parents  in  order 
to  return  something  for  their  kindness.  If  the  sons  are  not 
obliged  to  support  their  parents,  although  it  may  strengthen 
the  economic  motive  of  the  parents  and  promote  their  desire 
of  saving,  it  weakens  the  economic  motive  of  the  sons  and 
their  desire  of  working.  For  the  economic  society  as  a 
whole,  it  may  have  no  gain.  It  simply  makes  the  old  and 
weak  people  live  in  a  harder  way,  and  the  young  and  strong 
people  in  an  easier  way.  Even  though  it  should  be  of  some 
advantage  to  society,  it  is  unjust  and  unkind. 

Moreover,  according  to  human  nature,  at  least  Chinese 
nature,  the  old  people  are  generally  diligent  and  frugal  to 
acquire  and  to  accumulate  wealth  not  only  for  their  own 
sake,  but  mainly  for  the  sake  of  their  sons,  grandsons,  great- 
grandsons,  great-great-grandsons,  etc.  Therefore,  Con- 
fucius says  that,  when  the  superior  man  is  old,  and  the 
animal  powers  are  decayed,  he  guards  against  covetousness.^ 
In  fact,  there  are  very  few  parents  who  like  to  be  depend- 
ent upon  their  sons.  If  they  are  compelled  to  depend  upon 
them,  they  have  a  sense  of  disgrace,  because  none  will  feel 
good  if  he  falls  into  dependent  poverty.  The  really  for- 
tunate parents  are  those  who  themselves  are  very  prosper- 
ous and  independent,  while  their  sons  are  also  very  rich  and 
dignified,  and  contribute  their  service  and  honor  to  their 
parents  in  order  to  please  them.  Therefore,  the  public 
has  no  fear  that  the  parents  will  lower  themselves  to  be  a 

*  Ashley's  Economic  Classics,  p.  33. 
'  Classics,  vol.  i,  p.  313. 


ECONOMIC  ORGANIZATION  1 63 

dependent  class,  and  it  ought  not  to  deprive  them  of  their 
claim  upon  their  sons.  We  are  afraid  only  that  the  sons 
will  not  support  their  parents  when  there  is  need  of  it, 
and  not  that  the  parents  will  not  take  care  of  themselves. 

(c)  Holding  of  Property 

Since  Confucius  attaches  much  importance  to  the  doctrine 
of  filial  piety,  he  gives  the  parents  great  power  over  the 
property  of  the  whole  family.  He  says :  "  When  his  par- 
ents are  alive,  a  son  should  not  dare  to  consider  his  body 
as  his  own.  nor  to  hold  his  wealth  as  his  private  property. 
....  His  gifts  or  presents  should  not  extend  to  the  car- 
riage and  horse."  ^  The  controllers  of  the  property  of  a 
family  are  not  the  sons,  but  the  parents. 

The  **  Pattern  of  the  Family  "  says: 

.A  son  and  his  wife  should  have  no  private  commodities,  nor 
animals,  nor  vessels;  they  should  not  presume  to  borrow  from, 
or  give  anything  to,  another  per.son  privately.  If  her  relatives 
g^ve  the  wife  an  article  of  food  or  dress,  a  piece  of  cloth  or 
silk,  a  handkerchief  for  her  girdle,  an  iris  or  an  orchid,  she 
should  receive  and  offer  it  to  her  [)arents-in-la\v.  If  they  ac- 
cept it,  she  will  be  as  glad  as  if  she  were  receiving  it  afresh. 
If  they  return  it  to  her,  she  should  decline  it;  and  if  they  do 
not  allow  her  to  do  so,  she  will  take  it  as  if  it  were  a  second 
gift,  and  lay  it  by  to  wait  till  they  may  want  it.  If  she  wants 
to  give  it  to  some  of  her  relatives,  she  must  ask  leave  to  do  so, 
and  that  l>eing  granted,  she  will  give  it.^ 

When  her  father-in-law  is  dead,  her  mother-in-law  re- 
tires from  the  open  headship  of  the  family,  and  hands  her 
duties  to  the  wife  of  her  eldest  son ;  but  the  latter,  on  all 
occasions  of  sacrificing  and  receiving  guests,  must  ask  her 

*  Li  Ki,  bk.  xxvii.  p.  295. 
>  Li  Ki,  I  k.  X.  p.  458. 


164        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

directions  in  everything,  while  the  wives  of  the  other  sons 
must  ask  directions  from  her.^ 

In  this  type  of  family,  wealth  is  acquired  by  the  father, 
and  it  is  owned  in  common  by  all  the  members  of  the  family. 
Therefore,  the  father  is  the  head  of  the  family,  and  the 
mother  is  the  head  of  the  household.  Or,  the  wealth  is 
acquired  by  any  one  of  the  brothers,  usually  the  eldest,  but 
he  is  willing  to  give  it  up  to  the  family  as  a  whole,  and  re- 
gards his  parents  as  the  heads.  In  Chinese  history,  some 
families  can  hold  their  property  under  the  common  owner- 
ship for  nine  generations.  But  the  management  of  this  is 
very  difficult.  In  the  present  day,  the  tendency  is  towards 
the  limitation  of  family,  basing  it  on  the  husband  and  wife 
only.  But  as  long  as  the  institution  of  family  exists,  the 
Chinese  can  never  separate  their  parents  from  the  family, 
just  as  they  cannot  separate  their  children  from  it. 

Moreover,  the  marriage  of  a  son  is  usually  arranged  by 
his  parents,  before  he  has  become  a  producer.  Under  such 
circumstances,  he  has  nothing  to  call  his  own,  and  he  and 
his  wife  are  economically  dependent  upon  his  parents.  How 
can  he  be  the  real  head  of  a  family?  During  this  period, 
his  mother  takes  charge  of  the  household,  and  his  wife 
works  merely  as  a  student  or  an  assistant  to  her.  In  real- 
ity, it  is  much  better  for  his  wife  to  work  under  his  mother, 
because  Chinese  social  life  is  very  complex,  and  a  young 
woman  can  never  understand  all  the  affairs  of  her  new 
home.  Of  course  she  may  own  some  private  property,  such 
as  the  dower;  but,  when  she  receives,  or  borrows,  or  gives 
anything  beyond  the  limit  of  the  family,  it  is  polite  for  her 
to  ask  leave  from  her  mother-in-law.  Since  her  mother- 
in-law  must  treat  her  reasonably,  the  asking  for  leave  is 
simply  a  formal  ceremony,  otherwise  the  Chinese  could  not 

^  Li  Ki,  bk.  x,  pp.  457-8. 


ECONOMIC  ORGANIZATION  165 

have  held  such  a  family  type  for  thousands  of  years.  A  few 
years  later,  when  she  has  more  experience,  or  more  children, 
or  when  her  husband  becomes  economically  independent, 
she  may  be  separated  from  her  mother-in-law  and  manage 
a  family  of  her  own.  But,  even  after  such  a  separation, 
it  is  natural  for  her  to  seek  direction  from  her  mother-in- 
law,  and  to  regard  her  at  least  as  an  honorary  head  of  the 
family.  If  the  new  family  is  less  prosperous  than  the  old 
one,  the  son  and  his  wife  may  still  draw  benefit  from  the 
latter;  if  the  old  family  is  less  prosperous  than  the  new 
one,  the  son  must  support  his  parents.  In  short,  since  the 
son  and  his  wife  owe  a  great  debt  to  the  parents  and 
parents-in-law,  they  can  never  sever  the  economic  relation 
between  them.  Even  in  a  very  poor  family,  when  the  son 
establishes  himself,  arranges  his  marriage  himself,  and 
maintains  his  family  himself,  he  still  must  support  his 
parents,  and  serve  them  as  the  honorary  heads  of  the  family. 
This  is  the  type  of  Chinese  family  which  still  exists  to-day. 
The  difference  between  this  and  the  type  of  family  organiza- 
tion prevalent  in  the  West  is  obvious,  and  will  help  to  ex- 
plain the  Chinese  emphasis  on  the  duties  of  sons  to  parents, 
already  discussed. 

Basing  them  on  the  Confucian  doctrine,  the  Chinese 
draw  the  following  laws.  According  to  the  Lazv  Code  of 
the  Ts'ing  Dy}iasty^  if  grandsons  or  sons  whose  paternal 
grandparent  or  parent  is  still  alive,  separate  themselves  from 
their  homes  to  settle  elsewhere,  or  detach  parts  of  the  family 
possessions,  they  shall  be  punished  with  one  hundred  blows 
with  the  long  stick.  For  the  infliction  of  this  punishment, 
however,  it  is  required  that  the  complaint  be  lodged  by  a 
paternal  grandparent  or  parent.  During  the  life  of  their 
paternal  grandparents  or  parents,  no  sons  or  grandsons  shall 

'  Ch.  viii. 


1 66        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

be  allowed  to  divide  the  family  possessions  or  to  dwell  apart. 
But  they  may  split  up  their  possessions  if  their  parents  ap- 
prove thereof,  or  order  them  to  do  so.  If  brothers,  while 
in  mourning  for  one  of  their  parents,  separate  themselves 
from  the  home  to  fix  their  domicile  in  another  locality,  or 
detach  parts  of  the  patrimony,  eighty  blows  with  the  long 
stick  will  be  inflicted  upon  them.  It  is,  however,  required 
that  a  complaint  be  first  lodged  by  a  superior  or  senior 
from  among  the  relations  who  are  to  be  mourned  for  during 
one  year  or  longer.  Should  such  separation  from  the 
family  or  division  of  the  patrimony  have  taken  place  in 
obedience  to  the  testamentary  dispositions  of  a  paternal 
grandparent  or  parent,  it  does  not  fall  under  this  law. 

Within  the  family  which  holds  a  common  possession,  if 
a  member  of  the  lower  generation  or  younger  age,  without 
asking  the  authority  of  the  higher  generation  or  older  age, 
presumes  to  use  the  money  or  goods  of  the  family  pri- 
vately, he  shall  be  beaten  with  a  small  stick  twenty  times, 
when  the  money  or  goods  used  amount  to  ten  taels.  The 
number  of  blows  shall  be  proportionately  increased  for 
every  ten  taels  which  he  shall  use  privately.  But  the  pun- 
ishment is  limited  to  one  hundred  blows.  If  a  member  of 
the  higher  generation  or  older  age,  who  has  the  power  to 
divide  up  the  wealth  of  the  family,  does  not  divide  it  up 
proportionately  and  equally,  the  punishment  is  the  same. 
Although  the  junior  must  ask  the  permission  from  the 
senior,  he  has  a  right  to  the  common  possessions.  Al- 
though the  senior  controls  the  affairs  of  the  family,  he  has 
no  right  to  divide  up  its  wealth  unequally  among  the  mem- 
bers.    In  short,  the  head  of  a  family  is  but  a  trustee. 

When  there  is  any  title  or  office  which  is  given  to  the 
descendant  of  a  man,  it  shall  be  first  received  by  the  eldest 
son  or  grandson  of  his  wife.  But,  when  his  property,  per- 
sonal and  real  is  divided,  it  shall  be  distributed  equally  ac- 


ECONOMIC  ORGANIZATION  1 67 

cording  to  the  number  of  sons,  without  difference  between 
the  son  of  his  wife  and  that  of  his  concubine.  If  he  has  an 
illegitimate  son,  this  son  may  have  only  half  the  portion  of 
those  sons  who  are  the  children  of  his  wife  or  concubine. 
If  he  has  no  son  but  an  illegitimate  one,  he  shall  adopt  a 
step-son  who  has  the  proper  relation  with  him,  and  the  step- 
son shall  divide  his  property  equally  with  the  illegitimate 
son.  If  he  cannot  adopt  a  proper  step-son,  the  illegitimate 
son  is  allowed  to  inherit  the  whole  portion  of  his  property. 

When  a  family  is  extinguished  without  any  proper  step- 
son, the  daughter  of  the  family  may  receive  its  property. 
If  it  has  no  daughter,  the  magistrate  shall  report  it  to  the 
superior,  and  it  may  be  taken  by  the  public. 

These  are  the  laws  of  the  present  dynasty  concerning  the 
holding  of  property.  In  conclusion,  the  institution  of 
family  has  been  most  highly  developed  in  China,  because 
of  the  doctrine  of  filial  piety  of  Confucius.  The  rest  of 
the  world  has  no  clan  system  so  complete  and  highly  de- 
veloped as  that  of  China.  A  clan  which  is  composed  of 
many  families  under  a  conmion  remote  ancestor,  may  oc- 
cupy a  whole  town  for  over  a  thousand  years,  may  number 
over  one  hundred  thousand  souls,  and  may  hold  its  prop- 
erty as  long  as  the  clan  exists.  It  has  its  own  history,  and 
it  has  its  own  law,  not  contrary  to  the  national  law,  however. 
It  is  a  very  strong  local  government,  taking  charge  of  birth 
and  death,  marriage,  religion,  education,  charity,  election, 
arbitration,  punishment,  taxation,  police,  public  work.  etc. 
It  is  a  Confucian  system  of  the  Disorderly  Stage,  but  it  has 
developed  into  a  refined  form.  But  we  must  understand 
that  a  fanuly  is  an  economic  organization,  while  a  clan  is 
only  a  social  organization,  although  holding  common  prop- 
erty for  unlimited  generations. 


CHAPTER  XI 

Economic  Policies  and  the  Divisions  of  Economics 
I.  government  regulation 

Since  economic  life  is  very  important  to  man,  everyone 
naturally  considers  first  what  he  is  to  get,  rather  than  what 
he  ought  to  do.  Each  man  is  concerned  primarily  about 
his  own  interests.  It  is  because  of  this  fact  that  competi- 
tion arises.  According  to  the  theory  of  the  laissez-faire 
economists,  if  competition  is  absolutely  free,  everyone  will 
get  just  what  he  ought  to  get,  because  everyone  is  careful 
for  his  own  interest.  Hence  these  economists  advocate  com- 
petition as  necessary  to  economic  life,  and  believe  govern- 
ment interference  should  be  reduced  to  a  minimum.  The 
Confucian  doctrine  is  just  the  opposite;  government  inter- 
ference is  necessary  for  economic  life,  and  competition 
should  be  reduced  to  the  minimum.  In  order  to  explain 
this  doctrine,  we  shall  indicate  first  why  competition  should 
not  be  absolutely  free,  even  if  it  could  be  so. 

First,  let  us  consider  the  principle  of  natural  selection. 
In  the  Chinese  language,  the  word  tien  has  three  meanings : 
the  first  is  God ;  the  second.  Heaven ;  and  the  third,  nature. 
We  now  use  this  word  only  in  the  second  and  third  senses. 
Confucius  is  an  evolutionist.  He  says,  "  In  its  production 
of  things.  Heaven  is  sure  to  give  addition  to  them,  accord- 
ing to  their  own  qualities.  Hence,  when  the  things  or  men 
are  flourishing,  Heaven  nourishes  them;  when  they  are 
ready  to  fall,  it  overthrows  them."  ^  This  statement  sug- 
gests the  principle  of  natural  selection. 

'  Cf.  Classics,  vol.  i,  p.  399. 
168 


ECONOMIC  POLICIES  1 69 

Mencius,  also,  says : 

When  the  good  principle  prevails  over  the  world,  men  of  little 
virtue  are  submissive  to  those  of  great,  and  those  of  little 
worth  to  those  of  great.  When  the  good  principle  does  not 
prevail  over  the  world,  men  of  small  power  are  submissive  to 
those  of  great,  and  the  weak  to  the  strong.  Both  these  cases 
are  the  rule  of  Heaven.  They  who  accord  with  Heaven  are 
preserved,  and  they  who  rebel  against  Heaven  perish.^ 

Therefore,  Heaven  does  not  help  anyone  in  competition ; 
it  simply  stands  on  the  side  of  the  few  who  can  help  them- 
selves, and  eliminates  the  many  who  cannot  help  themselves. 
What  Heaven  is,  is  a  problem  transcending  the  question 
of  good  or  evil,  because  Heaven  is  neither  good  nor  evil. 
The  ''Appendix  "  says.  "  The  cosmic  processes  give  their 
stimulus  to  all  things,  but  have  not  the  same  anxiety 
as  the  sage."  ^  On  the  natural  side.  Heaven  represents 
cosmic  processes;  while  on  the  social  side,  the  sage  repre- 
sents ethical  processes.  These  two  can  never  be  harmon- 
ized, because  the  one  has  purpose,  and  the  other  has  not. 
In  a  religious  sense,  we  may  say  that  God  helps  the  vir- 
tuous; but  in  reality,  we  are  bound  to  admit  that  God  does 
not  help  anyone  but  the  strongest.  If  we  should  follow 
closely  the  laissez-faire  policy,  and  should  let  competition 
be  absolutely  free,  the  world  would  be  left  to  the  few  strong- 
est only.  Although  we  cannot  do  very  much  against  nature, 
how  can  we  bear  to  see  the  sufferings  of  the  weak,  who  con- 
stitute the  greatest  part  of  mankind?  Therefore,  no  great 
religious  teachers,  nor  great  moralists,  nor  great  states- 
men, let  nature  alone  without  some  sort  of  regulation. 
Since  natural  selection  is  good,  not  for  the  weak,  but  for 
the  strong  only,  artificial  adjustment  for  society  as  a  whole 
is  necessary.     The  Canan  of  CJiati^es  says ;  "  The  sage  sov- 

*  Cf.  Classics,  vol.  ii.  p.  296.  '  )'i  King,  p.  356. 


1 70        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

ereign  regulates  the  natural  course  of  heaven  and  earth,  and 
assists  the  application  of  the  adaptations  furnished  by  them, 
— in  order  to  help  the  people."  ^ 

Second,  let  us  consider  the  nature  of  man.  The  strong 
are  never  satisfied  unless  they  take  all  from  the  weak.  Ho 
Hsiu  says :  "  When  the  rich  compete  v^ith  the  poor,  even 
though  the  law  were  made  by  Kao  Yao,  [the  judge  of 
Emperor  Shun],  no  way  can  prevent  the  strong  from  press- 
ing upon  the  weak."  When  anyone  has  a  little  power  over 
others,  he  usually  employs  that  power  without  any  hesita- 
tion to  sacrifice  the  interest  of  others  for  his  own  sake,  if 
it  be  allowed.  Everyone  is  looking  after  his  own  interest 
indeed;  but  some  can  protect  themselves,  and  prosper,  and 
some  cannot,  although  they  may  know  the  need  of  it  per- 
fectly. Therefore,  human  nature  being  as  it  is,  competition 
should  not  be  unlimited.  For,  although  the  minority  may 
profit  by  absolute  freedom  of  competition,  the  majority  have 
no  free  hand  to  take  part  in  competition  with  the  minority, 
and  must  be  overcome  by  them.  Hence,  self-interest  can- 
not be  the  regulator  of  economic  life,  and  government 
regulation  is  necessary. 

Confucius  does  not  abolish  competition,  but  proposes  in- 
stead many  governmental  regulations  to  control  consump- 
tion, production  and  distribution.  We  shall  mention  them 
below  under  these  different  headings.  What  we  shall  dis- 
cuss here  is  the  general  policy  of  Confucius.  On  this  point, 
it  is  best  to  refer  to  the  "  Great  Model."  According  to  the 
"  Great  Model,"  the  final  end  of  a  government  is  to  enable 
the  people  to  enjoy  the  five  blessings  and  to  escape  the  six 
calamities.  The  five  blessings  are:  (i)  abundance  of 
wealth,  (2)  long  life,  (3)  good  health,  (4)  love  of  virtue, 
(5)  good  looks.  Contrasted  with  these  are  the  six  cala- 
mities: fi)  premature  death,  (2)  sickness,  (3)  sorrow,  (4) 

^  Yi  King,  p.  281. 


ECONOMIC  POLICIES 


171 


poverty,  (5)  ugliness,  (6)  weakness.  It  is  to  be  noticed 
that,  among  these  eleven  things  which  sum  up  Confucius' 
conception  of  human  happiness,  only  three,  love  of  virtue, 
sorrow,  and  weakness,  pertain  to  man's  moral  and  mental 
condition,  while  all  the  others  refer  to  physical  and  material 
enjoyment. 

Having  stated  what  is  the  final  end  of  government,  let 
us  now  see  what  are  the  duties  of  a  sovereign.  The  central 
point  of  the  "  Great  Model  "  is  the  standard  of  royal  per- 
fection :  '*  The  sovereign  must  establish  a  perfect  standard 
first.  Then  he  concentrates  in  his  own  hand  the  sources 
of  the  five  blessings,  in  order  to  diffuse  and  to  confer  them 
on  all  the  people."  In  fact,  his  most  important  duties  are 
only  two.  namely,  distribution  of  wealth  and  selection  of 
men.  It  admonishes  him  specially  by  saying,  "  Do  not  in- 
sult the  widowers  and  widows;  do  not  fear  the  high  and 
honorable."  In  short,  the  sovereign  should  establish  uni- 
versal and  equal  laws  in  order  to  help  the  weak  and  to  curb 
the  strong.  Then  it  points  out :  *'  Even  among  all  the 
right  men,  they  have  begun  to  be  good  only  after  they  had 
been  enriched."  Therefore,  the  distribution  of  wealth 
should  be  very  just;  and  the  condition  of  the  whole  society 
should  be  as  follows : 

Without  deflection,  without  unevenness. 

Pursue  the  royal  righteousness ; 

Without   any  selfish  likings. 

Pursue  the  royal  way ; 

Without  any  selfish  dislikings. 

Pursue  the  royal  path. 

Without  deflection,   without  partiality. 

The  royal   way  is  broad   and   long; 

Without  partiality,  without  deflection. 

The  royal  way  is  le\cl  and  easy; 

Without  perversity,  witiiout  onesidedness. 

The  royal  way  is  right  and  straight. 

All  concentrates  to  the  perfect  standard ; 

All  comes  to  the  perfect  standard. 


172 


THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 


This  form  of  government  is  the  ideal  of  Confueius.  The 
emperor  is  the  parent  of  the  people/ 

Such  a  government  regulates  not  only  the  economic  life 
of  the  people,  but  also  many  other  things.  Yet  their  econo- 
mic life  is  the  most  important  and  the  chief  source  of  all  the 
five  blessings.  The  reason  why  the  "  Great  Model  "  puts 
wealth  first  among  the  five  blessings  is  told  by  the  Park  of 
Narratives.  It  says  that  wealth  is  the  cause  that  makes  the 
state  prosperous,  men  and  women  beautiful,  morality  pre- 
vailing, and  the  mind  satisfied.^  Therefore,  when  the  sov- 
ereign concentrates  in  his  own  hand  the  sources  of  the  five 
blessings  in  order  to  diffuse  and  to  confer  them  on  all  the 
people,  he  controls  all  the  means  of  production,  and  dis- 
tributes equally  the  benefits  of  them  to  the  people.  This  re- 
sembles the  principle  of  state  socialism.  The  only  differ- 
ence is  that,  in  state  socialism,  there  is  no  personal  sover- 
eign, while  in  Confucius'  mind,  there  is  an  unselfish,  wise, 
just,  and  benevolent  sovereign  of  perfect  character.  Since 
wealth  is  the  first  thing  among  the  five  blessings,  and  the 
fountain  of  the  other  four  blessings,  the  government  must 
control  the  economic  life  of  the  people  above  anything  else. 

The  Great  Commentary  of  the  Canon  of  History  says : 

The  mothers  can  give  life  to  the  people  and  can  feed  them; 
the  fathers  can  instruct  and  can  teach  them ;  but  the  sage  king 
includes  the  two  functions  of  father  and  mother  together  with 
all  the  details.  .  .  .  He  makes  the  city  walls  for  their  settle- 
ment; builds  the  houses  for  their  dwelling;  establishes  the 
different  schools  for  their  education ;  and  divides  the  lands 
and  fixes  the  number  of  acres  for  their  nourishment.  .  .  . 
The  emperor  is  the  parent  of  the  people,  to  whom  the  people 
of  the  world  will  go. 

From  this  statement,   we  can  see  that  the  emperor  takes 

^Classics,  vol.  iii,  pt.  ii,  pp.  328-333,  343.  ^g^    iii. 


ECONOMIC  POLICIES 


173 


charge  of  the  economic  life  of  the  people  even  more  than 
do  their  parents. 

Concerning  government  interference  v^ith  the  economic 
life  of  the  people,  the  Canon  of  History  gives  the  words 
of  the  Emperor  Yao  as  follows :  ''  I  wish  to  help  the  people 
on  the  left  and  the  right."  ^  K'ung  Yin-ta  thus  explains 
this :  ''  To  establish  a  sovereign  is  for  the  shepherding  of 
the  people.  Therefore,  when  the  people  are  working  for 
the  production  of  wealth,  the  sovereign  should  assist  and 
help  them."  Such  a  conception  is  general  among  the 
Confucians. 

To  describe  the  evils  which  spring  from  the  absence  of 
regulations.  Pan  Ku  gives  an  example.  His  statement  re- 
fers to  the  age  of  Spring  and  Autumn  and  to  that  of  War- 
ring States,  but  it  is  also  a  picture  of  the  capitalistic  stage 
of  the  present  day.     He  says  : 

Under  the  influence  of  luxury  and  extravagance,  the  students 
and  the  common  people  all  disregarded  the  regulations  and 
neglected  the  primary  occupation.  The  number  of  farmers 
decreased,  and  that  of  merchants  increased.  Grain  was  in- 
sufficient, but  luxurious  goods  were  plenty.  After  the  age  of 
Duke  Kuan  of  Ch'i  and  Duke  Wen  of  Tsin,  moral  character 
was  greatly  corrupted,  and  social  order  was  confused.  Each 
state  had  a  different  political  system,  and  each  family  had  dif- 
ferent customs.  The  physical  desires  were  uncontrolled,  and 
extravagant  consumption  and  social  usurpation  had  no  end. 
Therefore,  the  merchant  transported  goods  which  were  diffi- 
cult to  obtain  ;  the  artisans  produced  articles  which  had  no 
practical  use ;  and  the  student  jiractised  ways  which  were  con- 
trary to  orthodoxy ;  all  of  them  pursued  the  temporary  fashion 
for  the  getting  of  money.  The  hypocritical  people  turned 
away  from  truth  in  order  to  make  fame,  and  the  guilty  men 
ran  risks  in  order  to  secure  profit.     Wliile  those  who  took  the 

•  Classics,  vol.  iii.  pt.  i.  \\.  79. 


1^4        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

states  by  the  deed  of  usurpation  or  regicide  became  kings  or 
dukes,  the  men  who  founded  their  rich  famiUes  by  robbery, 
became  heroes.  MoraUty  could  not  control  the  gentlemen, 
and  punishment  could  not  make  the  common  people  afraid. 
Among  the  rich,  the  wood  and  earth  wore  embroidery,  and  the 
dog  and  horse  had  a  superabundance  of  meat  and  grain.  But, 
among  the  poor,  even  the  coarsest  clothes  could  not  be  com- 
pleted; beans  made  their  food,  and  water  was  their  drink. 
Although  they  were  all  in  the  same  rank,  of  common  people, 
the  rich,  by  the  power  of  wealth,  raised  themselves  to  kings, 
while  the  others,  although  their  actual  condition  was  slavery 
and  imprisonment,  had  no  angry  appearance.  Therefore,  those 
who  were  deceitful  and  criminal  were  comfortable  and  proud 
in  the  world,  but  those  who  held  principles  and  followed 
reason  could  not  escape  hunger  and  cold.  Such  an  influence 
came  from  the  government,  because  there  was  no  regulation 
to  control  the  economic  life.^ 

This  statement  represents  the  general  theory  of  the  Con- 
fucians. They  always  have  the  socialistic  idea  in  mind. 
The  best  thing  is  the  equal  distribution  of  wealth,  while 
the  worst  thing  is  the  division  of  people  into  the  rich  and 
the  poor.  Such  a  theory  is  not  communism,  but  rather 
state  socialism. 

In  practice,  however,  the  Chinese  government  very  sel- 
rlom  takes  up  a  positive  policy  of  interference  with  the 
economic  life  of  the  people.  According  to  history,  when- 
ever the  government  adopted  any  minute  measure,  it  failed, 
with  few  exceptions.  The  territory  of  the  empire  is  large, 
the  term  of  the  magistrate  is  short,  and  the  people  by  na- 
ture do  not  like  to  have  anything  to  do  with  the  govern- 
ment. Therefore,  since  the  Ch'in  dynasty,  the  government 
of  modern  China  has  not  controlled  the  economic  life  of 
the  people  as  did  the  government  of  ancient  China. 

*  History  of  Han,  ch.  xci. 


ECONOMIC  POLICIES 


175 


On  account  of  the  teachings  of  Confucius,  however,  the 
people  respect  social  order  and  public  interest.  Hence,  their 
competition  is  not  very  sharp,  and  moral  influences  still  con- 
trol their  economic  motives.  Therefore,  although  their 
production  is  not  very  great,  their  distribution  is  compara- 
tively equal.  It  is  not  the  result  of  government  regulation, 
but  the  outcome  of  Confucius'  teachings. 

II.    LAISSEZ-FAIRE  POLICY 

By  the  word  laissez-faire,  we  do  not  mean  to  imply  that 
Confucianism  leaves  every  thing  wholly  unregulated.  It 
simply  indicates  that  the  Confucian  socialism  depends  not 
upon  any  revolutionary  force,  but  upon  the  development  of 
the  natural  course  of  things ;  that  human  nature  can  be  de- 
veloped to  perfection,  and  that  there  is  no  need  of  too  many 
artificial  laws  to  restrain  it  and  to  retard  its  progress,  ex- 
cept in  special  cases.  Universal  equality,  universal  oppor- 
tunity, and  economic  freedom  are  the  most  important  doc- 
trines of  Confucius.  The  class  system,  monopoly,  and  the 
tariff,  are  the  objects  of  his  condemnation.  According  to 
the  true  Confucian  theory,  a  full  chance  is  given  to  the 
people  for  their  natural  development.  This  is  the  way  to 
realize  Confucian  socialism.  On  the  one  hand,  we  find  that 
Confucianism  is  in  favor  of  social  legislation ;  on  the  other, 
we  find  also  that  it  is  in  favor  of  the  laissez-faire  policy. 
They  are  both  advantageous.  Confucianism  is  the  golden 
mean,  and  it  never  goes  to  extremes.  What  is  fitted  to  the 
time  or  condition  is  the  best.  In  a  word,  the  Confucian 
social  legislation  is  by  means  of  moral,  rather  than  govern- 
mental laws. 

For  the  exact  statement  of  the  laissez-faire  policy,  we  find 
a  general  economic  principle  given  by  Confucius  himself. 
When  Tzu-chang,  his  pupil,  asks  Confucius  about  the  art 
of  government,   he  enumerates   for  him  the  five  excellent 


1^6        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

things.  The  first  of  them  is  "  bounteousness  without  any 
cost."  Tzu-chang  asks  again:  ''What  is  meant  by  boun- 
teousness without  any  cost?"  "  Follow  what  is  the  profit  of 
the  people,  and  profit  them,"  answers  Confucius;  "is  this 
not  bounteousness  without  any  cost?"^  This  statement  is 
most  general  and  comprehensive,  and  needs  no  particular 
explanation. 

In  the  Many  Dew  drops  of  the  Spring  and  Autumn, 
Tung  Chung-shu  also  expresses  the  principle  of  the  laissez- 
faire  policy  as  follows :  "  If  a  sage  governs  a  state,  he  must 
follow  the  nature  of  heaven  and  earth,  and  the  personal 
interest  of  the  senses  of  man."  ^  This  is  the  general  policy 
of  leading  the  economic  life  of  the  people  in  the  natural  way. 

Among  all  the  Confucians,  Ssu-ma  Chien  is  the  one  who 
advocates  the  laissez-faire  policy  most  strongly.  His  theory 
is  based  on  human  wants.     He  says : 

Before  the  time  of  Shen  Nung  (2287  B.  K.  or  2838  B.  C),  I 
do  not  know ;  but  since  the  dynasties  of  Yii  and  Hsia,  told 
of  by  the  Canons  of  Poetry  and  History,  the  ear  and  eye  want 
to  exhaust  the  fineness  of  sound  and  beauty ;  the  mouth  wants 
to  exhaust  the  taste  of  meat;  the  body  wants  to  be  easy  and 
pleasant;  and  the  mind  wants  to  be  proud  of  the  glory  of 
power  and  ability.  These  economic  wants  have  produced  a 
general  habit  and  have  fixed  the  nature  of  the  people  for  a 
very  long  time.  Even  though  we  should  persuade  them  from 
door  after  door  with  a  fine  speech,  we  cannot  change  their 
habits.  Therefore,  the  best  policy  is  to  follow  the  economic 
activities  of  man ;  the  second  is  to  lead  them  on  profitably ; 
the  third  is  to  teach  them ;  the  fourth  is  to  regulate  them ;  and 
the  worst  is  to  fight  with  them. 

This  is  the  basis  of  his  theory.     In  a  word,  economic  wants,. 

*  Classics,  vol.  i,  pp.  352-3. 
'  Bk.  xx. 


ECONOMIC  POLICIES  lyy 

or  self-interest,  is  the  foundation  upon  which  economic  policy 
is  based. 

Then  he  comes  to  the  process  of  production  and  says : 

Society  depends  upon  the  farmer  for  the  supply  of  food ; 
upon  the  miner  for  the  development  of  the  mine;  upon  the 
artisan  for  the  manufacturing  of  goods;  and  upon  the  mer- 
chant for  the  exchange  of  them.  Has  this  natural  process 
anything  to  do  with  either  political  action,  or  religious  teach- 
ing, or  special  order  and  meeting?  It  is  simply  that  everyone 
respectively  employs  his  own  ability,  and  exhausts  his  own 
energy,  in  order  to  get  what  he  wants.  Therefore,  when  the 
commodity  is  cheap,  it  calls  forth  demand,  and  raises  its  price: 
and  when  it  is  dear,  it  calls  forth  supply,  and  lowers  its  price. 
Everyone  respectively  encourages  his  own  occupation,  and 
enjoys  his  own  work.  Such  a  natural  thing  is  like  the  water 
drifting  to  the  low  place  through  day  and  night  without  any 
cessation.  There  is  no  one  to  call  for  it  especially,  but  it 
comes  itself ;  there  is  no  one  to  demand  it  especially,  but  the 
people  offer  it  themselves.  Is  it  not  the  result  of  the  natural 
law  and  the  proof  of  the  natural  course? 

The  reason  he  is  in  favor  of  the  laissec-faire  policy  is  be- 
cause he  is  afraid  that  the  natural  process  of  production 
would  be  interrupted  if  it  were  interfered  with  by  the  gov- 
ernment. He  quotes  the  four  following  sentences  from  the 
Book  of  Chou :  "  If  there  were  no  farmer,  society  would 
be  in  want  of  food;  no  artisan,  it  would  be  in  want  of  busi- 
ness: no  merchant,  the  three  kinds  of  money  [copper,  silver 
and  gold]  would  disappear:  no  miner,  wealth  would  be  ex- 
hausted and  insufficient." 

He  emphasizes  the  last  sentence  by  saying  that,  if  wealth 
were  exhausted  and  insufficient,  the  natural  resources  of 
the  mountains  and  marshes  could  not  be  developed.  By 
this  he  points  out  the  importance  of  capital.  Then  he  con- 
cludes this  quotation  with  the  following  remarks: 


178        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

These  four  branches  of  production  are  the  sources  of  the 
economic  life  of  the  people.  When  the  sources  are  great,  the 
people  are  rich;  and  when  the  sources  are  small,  they  are 
poor.  Such  sources  are  the  causes  for  the  enrichment,  both 
of  the  state  and  of  private  families. 

Here  he  means  that  there  should  be  large  production.  If 
production  be  large,  the  sources  of  wealth  are  great,  and  it 
is  good  not  only  for  the  private  families,  but  for  the  public 
as  a  whole.  Therefore,  the  natural  process  of  production 
should  be  left  free,  because  it  will  bring  great  sources  of 
wealth  to  society. 

In  regard  to  distribution,  he  says :  "  The  reason  why  there 
are  the  rich  and  the  poor  is  not  by  reason  of  taking  some- 
thing from  the  one  and  giving  it  to  the  other.  It  is  sim- 
ply that  the  clever  get  more  than  sufficient,  and  the  stupid 
get  less  than  they  need."  Thus,  the  division  of  the  people 
into  rich  and  poor  is  merely  the  result  of  free  competition. 

After  describing  the  different  lives  of  rich  men,  and  the 
various  economic  conditions  of  great  cities,  he  continues  as 
follows : 

Among  the  common  people  generally,  if  a  man's  wealth  is 
tenfold,  the  people  respect  him ;  if  one  hundredfold,  they  fear 
him ;  if  one  thousandfold,  they  serve  him ;  and  if  ten  thousand- 
fold, they  enslave  themselves  to  him.  It  is  the  nature  of 
things.  Generally,  if  one  wishes  to  acquire  wealth  from  a 
poor  condition,  to  be  a  farmer  is  not  so  good  as  to  be  an  ar- 
tisan; to  be  an  artisan  is  not  so  good  as  to  be  a  merchant; 
and  to  make  embroidery  is  not  so  good  as  to  speculate  in  the 
market.  This  means  that  the  commercial  and  industrial  occu- 
pations are  the  resorts  of  the  poor. 

According  to  this  statement,  Ssu-ma  Chien  admits  that  there 
is  an  inequality  of  wealth  on  account  of  free  competition,  yet 
he  points  out  that  the  employment  of  the  poor  depends  upon 
the  rich. 


ECONOMIC  POLICIES 


179 


Through  the  ages  of  Spring  and  Autumn  and  of  Warring 
States  to  the  beginning  of  the  Han  dynasty,  the  economic 
condition  of  China  was  very  dynamic,  and  great  capi- 
tah'sts  were  numerous.  Great  capitaHsts  would  control 
whole  provinces;  smaller  ones,  whole  districts;  and  still 
smaller  ones,  whole  towns.  Their  wealth  was  accumulated 
by  different  occupations,  such  as  agriculture,  animal-breed- 
ing, mining,  manufacture,  trade  and  commerce.  Since 
there  had  been  a  great  amount  of  production  and  of  ac- 
cumulation,   Ssu-ma    Chien    believed    in    the    laisses-faire 

policy.  '5.'^' 

However,  he  does  not  go  to  the  extreme.  In  conclusion, 
he  says : 

When  wealth  is  not  confined  to  any  certain  occupation,  goods 
have  no  permanent  owners.  They  go  to  the  efficient  as  all  the 
trains  come  to  the  central  station,  and  dissolve  from  the  grasp 
of  the  inefficient  as  the  tiles  fall  from  the  roof  to  the  ground. 
A  millionaire  is  equal  to  the  prince  of  a  feudal  state,  and  a 
billionaire  even  enjoys  the  same  pleasure  as  a  king.  Are  they 
not  the  so-called  titleless  lords?     No.^ 

At  the  very  end  of  the  whole  chapter,  he  puts  this  negative 
answer  for  the  withdrawal  of  his  former  statements.  In 
fact,  on  the  one  hand,  he  likes  large  production,  so  that  he 
thinks  free  competition  is  worth  while;  on  the  other  hand, 
he  hates  unequal  distribution,  so  that  he  employs  sarcasm 
against  the  rich.  To  enlarge  production  and  to  equalize  dis- 
tribution is  his  final  aim.  Therefore,  in  his  conclusion,  he 
comes  to  the  common  point  of  the  Confucians. 

Taking  Chinese  history  as  a  whole,  we  may  say  that  the 
Chinese  have  enjoyed  a  great  deal  of  economic  freedom. 

*  Historical  Record,  ch.  cxxix.  It  is  interesting  to  compare  this 
theory  of  Ssu-ma  Chicn  with  that  of  Pan  Ku  in  the  last  section,  since 
they  wrote  on  the  same  subject. 


l8o        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

Except  for  a  few  laws  regulating  consumption  for  social 
reasons,  the  people  really  do  what  they  please.  The  funda- 
mental cause  is  that,  since  the  Chinese  Empire  is  very  large 
and  its  government  is  monarchical  in  form,  it  is  impossible 
for  the  government  to  interfere  closely  with  the  economic 
life  of  the  people.  Therefore,  although  there  are  some  laws 
respecting  economic  life,  the  people  need  not  come  in  touch 
with  them  at  all.  In  fact,  the  commercial  community  of 
the  Chinese  is  governed  by  custom  rather  than  by  law. 

III.    DIVISIONS   OF  ECONOMICS 

For  the  divisions  of  economics  in  the  Confucian  school, 
there  is  no  passage  more  comprehensive  than  that  in  the 
''  Great  Learning."  It  reads :  "  There  is  a  great  principle 
for  the  increase  of  wealth :  those  who  produce  it  should  be 
many;  and  those  who  consume  it,  few.  Those  who  create 
it  should  be  rapid ;  and  those  who  use  it,  slow.  Then  wealth 
will  always  be  sufficient."  ^  According  to  this  great  prin- 
ciple, there  are  only  two  things,  namely,  production  and 
consumption.  While  the  terms  many  and  few  refer  to  the 
number  of  men,  the  terms  rapid  and  slow  refer  to  the  pro- 
cess of  production  and  consumption.  This  is  a  most  com- 
prehensive principle  covering  the  whole  field  of  economics. 

This  great  principle  makes  production  and  consumption 
equal  in  rank,  but  recommends  that  production  should  be 
over  and  above  consumption.  This  is  quite  correct.  If 
production  were  just  equal  to  consumption,  there  could  be 
not  only  no  increase  of  production,  but  also  no  increase  of 
consumption.  The  only  means  of  extending  consumption, 
is  to  produce  wealth  over  and  above  the  limit  of  consump- 
tion. This  is  the  way  to  accumulate  capital,  and  to  make 
wealth  always  sufficient.  Such  terms  as  many  and  few, 
rapid  and  slow,  are  only  comparative  expressions.     They 

'  Classics,  vol.  i,  p.  379. 


ECONOMIC  POLICIES  l8l 

mean  that  the  consumers  should  be  fewer  than  the  pro- 
ducers, and  the  using  of  weaUh  slower  than  the  creation 
of  it.  This  does  not  mean  that  the  consumers  should  be  so 
few  as  to  check  the  producers,  and  the  using  of  wealth  so 
slow  as  to  block  its  creation.  Should  it  mean  this,  it  would 
be  not  only  inadvisable,  but  also  impossible. 

This  great  principle  holds  true  not  only  in  ancient  times, 
but  also  to-day.  As  the  words  many  and  few  refer  to 
the  number  of  men,  their  meaning  is  self-evident,  and  needs 
no  explanation.  The  word  rapid,  however,  has  great  signi- 
ficance. It  includes  all  the  improvements  in  economic  life. 
In  short,  all  those  things  which  can  quicken  the  process  of 
creating  wealth  are  embraced.  Therefore,  time-saving  ma- 
chines, transportation  and  communication,  the  money  and 
banking  system,  business  organizations,  etc.,  all  are  in- 
cluded in  the  principle  that  those  who  create  wealth  should 
be  rapid.  Hence,  this  sentence  covers  not  only  production, 
but  also  exchange  and  distribution. 

According  to  Professor  J.  B.  Clark,  exchange  is  only  a 
part  of  production,  because  it  produces  either  form  utility, 
or  place  utility,  or  time  utility.  Distribution  is  intimately 
linked  with  production,  because  distribution  to  each  mem- 
ber is  according  to  the  amount  he  has  contributed  to  the 
product.  Indeed,  production  continues  up  to  the  time  when 
consumption  begins.  Therefore,  the  "  Great  Learning  "  in 
dividing  economics  into  two  parts,  instead  of  four,  covers 
the  whole  ground. 

Following  the  statement  of  the  **  Great  Learning,"  we 
shall  divide  our  treatise  on  the  same  basis, — that  is,  we  shall 
divide  the  economic  principles  of  Confucius  and  his  school 
into  only  two  parts,  namely,  production  and  consumption. 
Within  the  part  of  production,  we  shall  include  the  prin- 
ciples of  exchange  and  distribution.  In  the  natural  order, 
production  precedes  consumption.     For  the  convenience  of 


1 82        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

our  arrangement,  however,  we  shall  take  up  consumption 
first.  In  the  first  place,  human  wants  are  the  basis  of 
economic  life  and  the  object  of  production.  In  the  second 
place,  the  part  dealing  with  production  needs  to  be  much 
fuller  than  that  dealing  with  consumption,  so  that  it  seems 
best  to  discuss  the  more  simple  subject  first  and  then  the 
more  complex  one. 


PART  II 
CONSUMPTION 


BOOK  IV.     CONSUMPTION 


CHAPTER  XII 

General  Principles  of  Consumption 

i.  human  wants 

All  founders  of  religions  turn  their  attention  to  God, 
but  Confucius  turns  his  to  man.  In  the  "  Evolution  of 
Civilization,"  he  says:  "Man  is  the  product  of  the  attri- 
butes of  Heaven  and  Earth,  by  the  interaction  of  the  dual 
forces  of  nature,  the  union  of  the  animal  and  intelligent 
souls,  and  the  finest  subtle  matter  of  the  five  elements."  ^ 
By  this  statement  he  means  that  man  is  a  spiritual  being. 
Again,  he  says:  "  Man  is  the  heart  and  mind  of  Heaven  and 
Earth,  and  the  visible  embodiment  of  the  five  elements.  He 
lives  in  the  enjoyment  of  all  flavors,  the  discriminating  of 
all  notes  of  harmony,  and  the  enrobing  of  all  colors."  "  By 
this  passage,  Confucius  means  that  man  is  also  a  material 
being.  He  takes  the  feelings  of  man  as  the  basis  of  his 
philosophy.  Or,  as  Confucius  himself  puts  it :  "  The  sage 
cultivates  the  feelings  of  man  as  the  fields,  so  that  man  re- 
gards the  sage  as  the  landlord."  * 

Now,  what  are  the  feelings  of  man?  According  to  Con- 
fucius, man  has  seven  feelings  which  are  given  to  him  by 
nature  and  not  by  learning,  namely,  joy,  anger,  sadness, 
fear,  love,  hatred  and  desire.*     The  last  one.  desire  or  want. 

'  Li  Ki.  bk.  vii,  p.  380.  ^Ibid..  ;>.  382. 

^  Ibid.,  p.  384-  *!bid..  p.  379. 

185 


l86        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

is  the  strongest  of  all.  Confucius  says :  "  For  food  and 
drink  and  sexual  pleasure,  there  is  the  greatest  desire  of 
man ;  against  death  and  poverty,  there  is  the  greatest  hatred 
of  man.  Thus  desire  and  hatred  are  the  two  great  ele- 
ments in  the  mind  of  man."  ^ 

In  fact,  Confucianism  is  more  human  than  any  other 
religion.  Mankind  is  the  object  of  its  teaching.  Human 
feeling  is  the  field  of  its  work.  Since  desire  is  the  strong- 
est feeling  of  man,  no  matter  how  spiritual  he  may  be,  the 
economic  wants  for  food,  drink  and  sexual  pleasure,  are 
the  corner  stones  of  human  society.  Therefore,  human  de- 
sire is  the  starting  point  both  of  ethics  and  of  economics. 

Kao  Tzu,  a  Confucian  living  in  the  time  of  Mencius,  says : 
"  The  appetite  of  food  and  of  sex  is  the  nature  of  man."  ^ 
Mencius  says:  "A  beautiful  woman  is  what  man  desires 
.  .  .  Wealth  is  what  man  desires  .  .  .  Political  dignity  is 
what  man  desires."  ^  Of  course,  Confucius  and  his  follow- 
ers do  not  mean  that  man  should  be  enslaved  by  his  desires. 
Yet  they  recognize  that  the  human  wants  are  necessary  to 
man.  Therefore,  the  Confucians,  since  Confucius,  never 
advocated  the  doctrine  of  extinguishing  desires  until  the 
time  of  Chou  Tun-yi  (i 568-1614,  or  loi 7-1073  A.  D.). 
The  true  doctrine  of  Confucius  is  not  that  man  should  have 
no  desires,  but  that  the  fewer  he  has,  the  better.  The 
"  Details  of  Rites  "  says:  "  Desires  should  not  be  indulged; 
.  .  .  pleasure  should  not  be  carried  to  excess."  *  This  is 
the  true  teaching  of  Confucius  in  regard  to  human  wants. 

It  should  be  noticed  that  the  theory  of  Malthus  is  for- 
mulated upon  the  same  basis  as  that  of  Confucius.  The 
two  postulata  made  by  Malthus  are:  "First,  that  food  is 
necessary  to  the  existence  of  man.     Secondly,  that  the  pas- 

1  Li  Ki,  bk.  vii,  p.  380.  2  Classics,  vol.  ii,  p.  397- 

'  Ibid.,  p.  344.  4  Li  Ki^  bk.  i,  p.  62. 


GENERAL  PRINCIPLES  OF  CONSUMPTION  187 

sion  between  the  sexes  is  necessary,  and  will  remain  nearly 
in  its  present  state."  ^  These  two  postulata  are  similar  to 
those  of  Confucius.  However,  Malthus  develops  from 
these  wants  his  famous  doctrine  of  population,  while  Con- 
fucius works  out  a  general  system  of  philosophy.  This  is 
because  Malthus  is  a  specialized  economist,  while  Confucius 
is  a  great  teacher,  in  the  broadest  sense.  Taking  parts  of 
his  general  system,  however,  Confucius,  too,  shows  himself 
an  economist. 

Human  wants,  however,  are  progressive  and  unlimited. 
Such  characteristics  are  described  by  Hsun  Tzu.  as  follows : 

In  the  nature  of  man,  in  his  eating,  he  wants  flesh  of  grass- 
and  grain-fed  animals;  in  his  dressing,  he  wants  silk  of  beau- 
tiful dye,  and  embroidery ;  in  his  traveling,  he  wants  carriages 
and  horses.  Besides  these,  he  wants  the  riches  of  accumulated 
surplus.  But,  year  after  year,  and  generation  after  genera- 
tion, man  still  does  not  know  what  "  enough  "  is ;  this  is  the 
characteristic  of  human  nature.^ 

II.    THE  DOCTRINE  OF  RITES 

Although  Confucius  recognizes  human  \vants,  and  sanc- 
tions their  gratification,  he  does  not  allow  the  human  wants 
to  be  uncontrolled.  Therefore,  he  sets  forth  rules  for  their 
regulation,  known  as  rites.  This  means  what  is  proper,  in 
every  way.  The  scope  of  this  word  is  too  broad ;  it  has  no 
real  equivalent  in  English,  except  that  the  word  civiliza- 
tion might  cover  its  whole  sense.''  As  we  are  considering 
the  principles  of  consumption,  however,  we  shall  confine 
ourselves  to  those  rites  which  are  connected  with  consump- 
tion.    We  shall  divide  the  functions  of  rites  into  two  heads : 

*  Principle  of  Population.     Ashley's  edition,   p.  6. 

'  Bk.  iii. 

^  Cf.  Montesquieu's  Spirit  of  Laws.  vol.  i,  pp.  324-5 


l88         THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

the  one  for  the  satisfaction  of  wants,  and  the  other  for  their 
regulation.  These  are  the  chief  aspects  of  rites.  There  are 
many  other  details,  but  we  shall  study  them  under  other 
sections. 

I.  Satisfaction  of  Wants 
The  first  function  of  rites  is  the  satisfying  of  human 
wants.     This  is  pointed  out  most  clearly  by  Tsun  Tzu : 

Where  do  the  rites  come  from?  Man  is  born  with  wants. 
When  he  wants  something  and  cannot  get  it,  he  must  try  to 
acquire  it  with  all  his  effort.  When  people  acquire  things  with- 
out measure  or  limitation,  they  must  fight  with  one  another. 
When  they  fight  with  one  another,  society  becomes  disordered. 
If  society  became  disordered,  it  would  come  to  an  end.  The 
ancient  kings  hated  social  disorder,  so  they  established  rites 
and  justice  to  mark  the  social  distinctions,  in  order  to  satisfy 
the  wants  of  man  and  to  supply  his  demands.  Preventing  the 
wants  from  exhausting  the  commodities,  and  not  allowing  the 
commodities  ever  to  fail  the  wants,  two  elements  that  help  each 
other  and  keep  society  going— this  is  the  point  from  which  the 
rites  arose. 

Therefore,  the  rites  are  made  for  the  satisfying  of  wants. 
The  flesh  of  grass-  and  grain-fed  animals,  the  rice  and  millet, 
made  savory  with  the  five  flavors,  are  used  to  satisfy  the  sense 
of  taste.  The  scents  of  the  spice-plants  and  orchids  satisfy  the 
sense  of  smell.  Sculptures,  embroideries  and  the  different 
colors  satisfy  the  eyes.  The  bell,  drum,  flute,  sounding-stone, 
lute,  harp,  reed-pipes  and  reed-organ  satisfy  the  ears.  And 
the  pleasant  room,  magnificent  buildings,  rush  mat,  bed,  chair 
and  table  satisfy  the  body.  Therefore,  the  rites  are  necessary 
for  satisfaction.^ 

From  what  Hsun  Tzu  has  indicated  we  know  that  the 
fundamental  purpose  of  rites  is  to  satisfy  wants.  Rites  have 
not  grown  out  of  the  religious  or  ethical  sense,  but  out  of 

'  Bk.  xix. 


GENERAL  PRINCIPLES  OF  CONSUMPTION  189 

economic  wants. ^  Therefore,  economic  wants  are  at  the 
basis  of  civiHzation. 

A  particular  characteristic  of  Confucius'  system  is  that 
he  takes  human  wants  as  the  foundation  of  his  philosophy, 
and  combines  the  economic  and  ethical  elements  into  one 
single  principle.     He  says : 

The  rites  have  their  origin  in  Heaven ;  their  movement  reaches 
to  the  earth ;  their  distribution  extends  to  all  the  business  of 
the  world ;  they  change  with  the  times ;  they  agree  with  the 
variations  of  condition  and  skill  of  man.  When  they  come 
down  to  man,  they  serve  to  satisfy  the  human  wants.  They 
are  practiced  by  means  of  wealth,  efforts  of  labor,  words  and 
postures  of  courtesy,  eating  and  drinking,  in  the  observances 
of  capping,  marriage,  funeral,  sacrificing,  games  of  archery, 
district-drinkings,  princely  visiting  to  the  emperor,  and  diplo- 
matic intercourse. 

Therefore,  rites  and  justice  are  great  elements  of  man. 
They  are  the  instruments  to  express  truth  and  to  promote  har- 
mony in  dealing  with  others;  and  to  strengthen  the  union  of 
the  cuticle  and  cutis,  the  binding  together  of  the  muscles  and 
bones,  in  dealing  with  one's  self.  They  are  the  great  systems 
to  nourish  the  living,  to  give  funeral  to  the  dead,  and  to  serve 
the  spirits  and  gods.  They  are  the  great  channels  through 
which  we  carry  out  the  principles  of  Heaven  and  satisfy  the 
feelings  of  man.^ 

This  is  the  most  wonderful  system  of  Confucius.  He 
brings  his  principles  from  Heaven,  and  establishes  his  real 
kingdom  upon  the  earth.  His  system  is  not  unhuman.  but 
human;  not  theoretical,  but  practical;  somewhat  spiritual, 

'  What  the  Confucians  call  rites  are  simply  rules  of  consumption  for 
the  satisfaction  of  wants.  The  reason  Confucius  uses  the  word  rites, 
instead  of  an  economic  term,  is  merely  because  he  is  not  a  pure 
economist. 

«  Li  Ki.  bk.  vii.  p.  388-9. 


IQO        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

but  very  material;  ethical,  but  at  the  same  time  economic. 
He  especially  emphasizes  that,  when  the  rites  come  down 
to  man,  they  serve  to  satisfy  the  human  wants.  He  takes 
care  of  not  only  the  heart  and  mind,  but  also  the  body; 
he  regards  not  only  the  individual,  but  also  society  and  the 
diplomatic  world.  Indeed,  he  takes  the  economic  needs  as 
the  basis  of  his  ethical  teachings,  and  prescribes  social  sys- 
tems for  the  satisfaction  of  economic  wants.  The  prin- 
ciples of  Heaven  are  included  in  the  desires  of  man,  and  the 
social  and  spiritual  duties  are  discharged  by  the  physical 
and  material  means :  without  economics  there  would  be  no 
ethics.  Hence,  he  makes  economics  and  ethics  one  sys- 
tem, and  the  satisfaction  of  human  wants  the  first  function 
of  rites. 

It  is  at  this  point  that  Confucius  establishes  his  religion 
differently  from  that  of  Lao  Tzu  and  that  of  Mo  Tzu. 
They  were  the  two  great  rivals  of  Confucius ;  but  they  were 
surpassed  by  him.  It  is  because  their  religions,  Taoism 
and  Moism,  do  not  satisfy  the  human  wants.    Lao  Tzu  says : 

The  five  colors  make  the  eyes  of  man  blind.  The  five  notes 
of  music  make  the  ears  of  man  deaf.  The  five  tastes  make 
the  mouth  of  man  lose  its  sense.  Riding  and  hunting  make 
the  mind  of  man  insane.  The  articles  which  are  hard  to  be 
obtained  make  the  conduct  of  man  harmful.^ 

This  is  exactly  opposite  to  the  doctrine  of  Confucius.  On 
this  point,  Lao  Tzu  is  similar  to  Mo  Tzu.  The  economic 
doctrine  of  Mo  Tzu  depends  entirely  upon  parsimony.  He 
reduces  the  consumption  of  man  to  a  bare  living.  He  op- 
poses the  practice  of  rites  and  the  use  of  music,  and  makes 
life  as  uncomfortable  as  possible.     Taoism  and  Moism  are 

'  Tao  Te  King,  ch.  xii.  The  five  colors  are  green,  red,  yellow,  white, 
black.  The  five  notes  correspond  to  c,  d,  e,  g,  a.  The  five  tastes  are 
sour,  bitter,  acrid,  salt,  sweet. 


GENERAL  PRINCIPLES  OF  CONSUMPTION 


191 


very  unnatural  and  impracticable,  because  they  do  not 
satisfy  human  wants.  But  Yang  Chu  changed  Taoism  to 
resemble  Epicureanism. 

Basing  it  on  economic  principles,  Confucius  makes  his 
religion  not  only  different  from  Taoism  and  Moism,  two 
religions  native  to  China,  but  also  from  the  foreign  religion 
that  had  been  introduced  into  China,  that  is,  Buddhism. 

In  the  Canon  of  History,  there  is  the  "Announcement 
About  Drunkenness,"  in  which  Chang  Shih  (1684-1731 
A.  K.  or  1133-1180  A.  D.)  gives  a  famous  interpretation 
to  show  the  differences  between  Confucianism  and  Bud- 
dhism.    We  shall  quote  it  as  follows : 

Strong  drink  is  a  thing  intended  to  be  used  in  offering  sac- 
rifices and  in  entertaining  guests ;  such  employment  of  it  is 
what  Heaven  has  prescribed.  But  men  by  their  abuse  of  such 
drink  come  to  lose  their  virtue  and  destroy  their  persons ;  to 
such  employment  of  it  Heaven  has  annexed  its  terrors.  The 
Buddhists,  hating  the  use  of  things  where  Heaven  sends  down 
its  terrors,  put  away  as  well  the  use  of  them  which  Heaven 
has  prescribed.  It  is  not  so  with  our  Confucians; — we  only 
put  away  the  use  of  things  to  which  Heaven  has  annexed  its 
terrors ;  and  the  use  of  them  of  which  it  approves  remains  as 
a  matter  of  course. 

For  instance,  in  the  use  of  meats  and  drinks,  there  is  iUch 
a  thing  as  wildly  abusing  and  destroying  the  creatures  of 
Heaven.  The  Buddhists,  disliking  this,  confine  themselves  to 
a  vegetable  diet,  while  our  Confucians  only  keep  away  from 
the  wild  abuse  and  destruction.  In  the  use  of  clothes,  agam, 
there  is  such  a  thing  as  wasteful  extravagance.  The  Budd- 
hists, disliking  this,  will  have  no  clothes  but  those  of  a  dark 
and  sad  color,  while  our  Confucians  only  condemn  the  ex- 
travagance. They,  further,  through  dislike  of  criminal  con- 
nection between  the  sexes,  would  abolish  the  relation  between 
husband  and  wife,  while  our  Confucians  only  denounce  the 
criminal  connection. 


IQ2         THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

The  Buddhists,  disliking  the  excesses  to  which  the  evil 
desires  of  men  lead,  would  put  away,  along  with  them,  the 
actions  which  are  in  accordance  with  the  justice  of  heavenly 
principles,  while  our  Confucians  put  away  the  evil  desires 
of  men,  and  what  are  called  heavenly  principles  are  the  more 
brightly  seen.  Suppose  the  case  of  a  stream  of  water.  The 
Buddhists,  through  dislike  of  its  being  foul  with  mud,  pro- 
ceed to  dam  it  up  with  earth.  They  do  not  consider  that 
when  the  earth  has  dammed  up  the  stream,  the  supply  of  water 
will  be  entirely  cut  off.  It  is  not  so  with  our  Confucians.  We 
seek  only  to  cleanse  away  the  mud  and  sand,  so  that  the  pure, 
clear  water  may  be  available  for  use.  This  is  the  difference 
between  Buddhism  and  Confucianism.^ 

Along  this  line,  we  may  make  a  comparison  between 
Confucianism  and  Christianity.  The  position  of  St.  Paul 
in  Christianity  is  more  important  even  than  that  of  Men- 
cius  in  Confucianism,  because  Paul  is  the  real  founder  of 
Christianity.  When  v^e  study  his  first  epistle  to  Tim^othy, 
he  speaks  of  "  forbidding  to  marry  and  commanding  to  ab- 
stain from  meats  which  God  created  to  be  received  with 
thanksgiving"  as  the  doctrine  of  demons.^  This  seems 
quite  similar  to  Confucianism,  but  there  is  a  difference.  In 
regard  to  marriage,  Confucius  not  only  does  not  forbid  it, 
but  recommends  it  as  a  necessary  thing.  Among  all  great 
Confucians,  none  has  spoken  of  celibacy,  although  anyone 
might  practice  it  from  personal  choice.  But  Jesus  regards 
the  unmarried  men  as  those  who  "  have  made  themselves 
eunuchs  for  the  kingdom  of  heaven's  sake."  ^  And  Paul 
says  also :  "  It  is  good  for  a  man  not  to  touch  a  woman."  * 
This  is  really  the  orthodoxy  of  Christianity;  hence,  apos- 
tles and  fathers  of  the  church  alike  have  ever  looked  upon 

^  Classics,  vol.  iii,  pt.  ii,  p.  402. 

'  /  Timothy  4:3. 

^Matthew  19:  12,  *  I  Corinthians  7:1. 


GENERAL  PRINCIPLES  OF  CONSUMPTION 


193 


marriage  as  a  necessary  evil,  and  even  to-day  the  Catholic 
Church  still  clings  to  the  orthodox  view.  This  is  similar  to 
Buddhism,  but  entirely  different  from  Confucianism. 

Concerning  marriage,  Christianity  goes  further  than 
Confucianism,  but  concerning  the  eating  of  meat,  it  is  a 
little  behind  it.  Paul  says  that  God  has  created  meats  "  to 
be  received  with  thanksgiving  by  them  that  believe  and 
know  the  truth.  For  every  creature  of  God  is  good,  and 
nothing  is  to  be  rejected."  Comparing  such  a  theory  with 
that  of  Confucius,  it  seems  narrow-minded,  and  not  very 
humane.  Man  is  also  a  creature  of  God;  but  how  can  we 
say  that  we  may  eat  his  flesh  with  thanksgiving?  To  say 
that  every  creature  of  God  is  not  to  be  rejected  is  not  very 
good  reasoning.  Of  course,  we  may,  and  ought  to,  eat  meat 
now ;  but  we  should  not  base  the  eating  of  it  on  such  a 
theory. 

Confucius,  although  not  abstaining  from  meat  entirely, 
has  a  tendency  to  such  abstinence.  In  the  ''  Royal  Regula- 
tions," there  is  a  rule  that  no  one  should  kill  animals  with- 
out sufficient  cause. ^  Confucius  says:  "To  fell  a  single 
tree,  or  kill  a  single  animal,  not  at  the  proper  season,  is 
contrary  to  filial  piety."  ^  And  there  is  a  suggestion  that 
the  tendency  of  Confucianism  is  toward  abstaining  from 
meat,  because  there  is  the  principle  of  "  keeping  away  from 
the  kitchen  "  where  the  victims  are  both  killed  and  cooked. 
Mencius  says:  "For  the  relation  of  the  superior  man  to 
animals,  having  seen  them  alive,  he  cannot  bear  to  see  them 
die;  having  heard  their  dying  cries,  he  cannot  bear  to  eat 
their  flesh.  Therefore,  the  superior  man  keeps  away  from 
the  kitchen."  *  This  is  the  way  to  develop  the  spirit  of 
humanity.     The  Record  of  Rites  says :  "A  superior  man 

^  Li  At,  bk.  iii,  p.  227.  '  Ibid.,  bk.  xxi.  p.  228. 

*  Classics,  vol.  ii,  p.   141. 


194        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

keeps  away  from  the  kitchen,  and  does  not  tread  wherever 
there  is  such  a  thing  as  blood  or  tainted  air."  ^  The  Many 
Dcivdrops  of  the  Spring  and  Autumn  says :  "  Sincerely  love 
the  people;  and  love  also  even  the  animals  and  insects.  If 
we  do  not  love  them  all,  how  can  it  be  called  humanity?"  ^ 
The  reason  the  Confucians  extend  their  love  to  animals  is 
exactly  because  they  are  the  creatures  of  God.  But,  since 
Confucianism  is  very  practical,  it  does  not  insist  on  ab- 
stinence from  meat  under  existing  conditions.  Mencius 
says :  "  The  superior  man  is  affectionate  to  his  relatives,  and 
lovingly  disposed  to  people  generally.  He  is  lovingly  dis- 
posed to  people  generally,  and  kind  to  creatures."  *  This 
is  the  standard  of  giving  love,  and  it  is  harmonious  with  the 
principle  of  the  Three  Stages.  According  to  Kang  Yu-wei, 
when  we  shall  have  a  suitable  substitute  for  meat,  we  shall 
abstain  from  meat  entirely.  This  will  be  the  Extreme 
Peace  Stage  of  Confucius. 

In  short,  concerning  abstinence  from  meat,  from  the 
point  of  view  of  love,  Buddhism  is  the  highest,  but  it  is 
impracticable.  The  theory  of  Paul  is  somewhat  cruel,  al- 
though it  is  an  unavoidable  fact.  Confucianism  here  takes 
the  middle  ground  between  Buddhism  and  Christianity.  It 
embraces  the  whole  principle  of  love,  but  practices  it  step 
by  step.     It  is  the  golden  mean. 

All  these  discussions  are  introduced  not  as  a  comparative 
study  of  religions,  but  merely  to  indicate  the  fact  that 
Confucius  combines  the  economic  and  ethical  elements  into 
one  system,  and  that  this  is  a  characteristic  peculiar  to  his 


religion. 

» Li  Ki,  bk.  xi, 

P- 

4- 

'  Bk.  xxix. 

•  Classics,  vol. 

ii, 

P- 

476. 

GENERAL  PRINCIPLES  OF  CONSUMPTION  195 

2.  The  Regulation  of  IVants 
(a)  Moral  Control 
Although  the  primary  function  of  rites  is  for  the  satis- 
faction of  wants,  a  secondary  function  is  for  their  regula- 
tion. There  are  many  bases  according  to  which  the  regula- 
tion of  consumption  is  made.  But  the  ethical  basis  is  the 
first  one,  that  is,  self-control.  The  "  Record  of  Music  " 
says: 

The  ancient  kings,  in  their  institution  of  rites  and  music,  did 
not  seek  to  extend  the  wants  of  the  appetite  and  of  the  ears 
and  eyes  to  an  extreme ;  but  they  intended  to  teach  the  people 
to  regulate  their  passions  of  liking  and  disliking,  and  to  brmg 
them  back  to  the  normal  course  of  humanity. 

When  man  is  born,  he  is  still;  it  is  the  nature  given  by  God. 
When  he  is  affected  by  external  things,  he  is  active ;  it  is  the 
wants  coming  out  from  his  nature.  When  things  come  to  him 
more  and  more,  his  knowledge  is  increased.  Then  arise  Ihe 
passions  of  liking  and  disliking.  If  these  are  not  regulated 
by  anything  within,  growing  knowledge  leads  him  more  astray 
without,  and  he  is  unable  to  come  back  to  himself:  his  prin- 
ciple given  by  God  will  be  extinguished. 

Now,  the  moving  power  of  things  upon  man  is  ceaseless: 
and  if  his  passions  of  liking  and  disliking  are  not  subjected  to 
regulation  from  within,  he  is  changed  into  the  nature  of  things 
as  they  come  before  him;  that  is,  he  destroys  the  principles  of 
God  and  gives  utmost  indulgence  to  the  wants  of  man.  From 
this  wc  have  the  rebellious  and  deceitful  heart,  together  with 
licentious  and  violent  disorder.  Therefore,  the  strong  oppress 
the  weak;  the  many  arc  cruel  to  the  few;  the  intelligent  im- 
pose upon  the  ignorant ;  the  bold  make  it  bitter  for  the  timid ; 
the  diseased  are  not  nursed ;  the  old  and  young,  orphans  ?nd 
those  who  arc  solitary  are  neglected :  such  is  the  great  dis- 
order that  ensues.* 

'  Cf.  Li  Ki,  bk.  xvii,  p.  96. 


ig6        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

From  this  passage,  we  can  understand  why  the  ethical 
element  comes  into  the  economic  field.  First,  man  by  na- 
ture has  wants.  Second,  his  wants  become  more  active 
when  he  is  affected  by  external  things.  Third,  his  wants 
increase  as  his  knowledge  increases,  and  the  latter  is  the 
result  of  the  coming  of  things.  Fourth,  things  that  affect 
man  are  ceaseless,  and  the  wants  of  man  are  limitless.  With 
all  these  four  reasons,  if  man  were  driven  only  by  economic 
wants  without  any  ethical  consideration,  society  would 
surely  become  disordered,  and  the  majority  of  the  human 
race  would  be  unable  to  satify  their  wants. 

In  order  to  make  everyone  able  to  satisfy  his  wants  to 
some  degree,  it  is  necessary  to  make  everyone  able  to  re- 
gulate his  wants.  And  such  regulation  is  best  made  by  each 
for  himself.  Everyone  has  a  good  nature  given  by  God; 
if  he  can  come  back  to  himself,  he  will  make  his  own  mind 
the  master  of  his  body,  and  his  passions  will  be  controlled 
within.  This  is  an  ethical  regulation  upon  the  human 
wants,  but  it  has  two  objects.  On  the  one  hand,  it  pre- 
vents the  existence  of  the  rebellious  and  deceitful  heart, 
and  of  licentious  and  violent  disorder.  This  is  the  ethical 
result.  On  the  other  hand,  it  helps  to  supply  the  material 
needs  for  the  weak,  the  few,  the  ignorant,  the  timid,  the 
diseased,  the  old  and  young,  the  orphans  and  the  solitary. 
This  is  the  economic  result.  Therefore,  we  may  ethically 
control  our  consumption,  but  its  effect  will  help  the  con- 
sumption of  others,  and  the  distribution  of  wealth  through- 
out the  whole  society. 

(b)  Social  Control 

The  second  basis  for  the  regulation  of  economic  wants 
is  the  social  order.  In  Confucian  literature,  society  is 
divided  into  five  orders;  namely,  emperor,  princes,  great 
officials,  students,  and  common  people.     Each  class  has  its 


GENERAL  PRINCIPLES  OF  CONSUMPTION  197 

own  standard,  and  regulates  its  own  consumption.  For  all 
food,  clothes,  dwellings,  furniture,  decorations,  etc.,  there 
are  certain  rules  prescribed  by  law.  For  example,  the  em- 
peror has  seven  ancestral  temples;  each  prince  five;  each  of 
the  great  officials  three ;  each  student  one ;  the  common  peo- 
ple have  none,  but  worship  their  ancestors  in  their  houses/ 
Again,  when  a  son  is  three  days  old,  there  is  a  ceremony  of 
receiving  him.  If  he  is  the  eldest  son  of  the  emperor  or  of 
a  prince,  three  animals  are  killed  for  the  occasion ;  of  a  great 
official,  two  small  animals;  of  a  student,  a  single  pig;  of 
the  common  people,  a  sucking  pig.  If  he  is  not  the  eldest 
son,  the  provision  is  diminished  in  every  case  one  degree.* 
The  Many  Deufdrops  of  the  Spring  and  Autumn  says: 

The  ordinary  people  do  not  dare  to  wear  different  colors ;  the 
artisans  and  merchants  do  not  dare  to  wear  the  thick  furs  of 
fox  and  badger ;  those  criminal  people  who  have  been  pun- 
ished by  bodily  penalty  do  not  dare  to  wear  silk,  or  deep  azure 
and  purple  colors,  nor  do  they  dare  to  ride  on  horses.  This 
is  called  the  system  of  dress.^ 

All  these  regulations  are  ancient  customs,  and  they  are 
recognized  by  Confucius.  Of  course,  they  prevent  the  eco- 
nomic development  a  good  deal,  but  they  have  three  essen- 
tial purposes. 

First,  they  have  the  ethical  reason.  Hans  External 
Commentary  of  the  Canon  of  Poetry^  says: 

The  ancients  have  the  "  appointed  people."  When  those 
people,  who  arc  able  to  respect  the  old,  to  help  the  orphan, 

1  Li  Ki.  l)k.  iii.  p.  223. 

'  Ibid.,  bk.  X,  p.  472.  '  Bk.  xxvi. 

*  Written  by  Han  Ying,  one  of  the  three  oldest  and  greatest  authori- 
ties on  the  Canon  of  Poetry.  He  was  professor  during  the  reign  of 
Han  Wen  Ti  (373-395  A.  K.,  or  179-157  B.  C).     Bk.  vi. 


198        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

to  be  moderate  in  their  getting  and  diligent  in  their  working, 
arc  commended  to  their  ruler,  the  ruler  appoints  them  to  iiave 
the  right  to  ride  with  decorated  carriage  and  two  horses. 
Those  who  have  no  such  appointment  cannot  have  the  right; 
if  they  do  ride  with  decorated  carriage  and  two  horses,  Ihey 
shall  pay  a  penalty.  Therefore,  if  the  people  had  no  rites, 
justice,  merit,  and  virtue,  even  though  they  have  superfluous 
wealth  and  luxurious  things,  they  could  not  use  them.  There- 
fore, the  people  rise  for  love  and  justice,  and  look  down  on 
wealth.  Locking  down  on  wealth,  they  do  not  struggle  for 
money.  Not  struggling  for  money,  the  strong  do  not  oppress 
the  weak  and  the  many  do  not  hurt  the  few. 

Similar  statements  are  given  by  the  Great  Commentary  of 
the  Canon  of  History,  and  the  Park  of  Narratives,  etc. 
This  is  an  important  principle  of  Confucius,  to  raise  the 
standard  of  morality  above  the  standard  of  living.  You 
cannot  raise  the  standard  of  living,  unless  you  raise  the 
standard  of  morality.  The  moralist  can  get  all  the  ma- 
terial enjoyments,  but  the  financier  can  get  nothing.  There- 
fore, the  people  will  struggle  for  virtue  rather  than  for 
wealth,  and  the  two  standards  will  be  identified. 

Second,  they  have  the  social  reason.  That  all  are  born 
equal  is  a  theory,  but  that  all  are  not  equal  is  a  fact. 
Therefore,  the  superior  man  should  occupy  the  high  position, 
and  the  common  man  the  low  position.  Again,  those  who 
occupy  the  high  position  should  enjoy  high  living,  and  those 
who  stay  in  the  low  position  should  content  themselves  with 
low  living.  If  the  common  people  can  use  everything  which 
is  used  by  the  ruling  class,  they  will  have  no  respect  for 
their  authority,  and  fight  for  usurpation.  Then  society  will 
become  disordered,  and  depend  only  upon  force.  This  is 
especially  true  under  a  monarchical  government.  There- 
fore, the  social  scale  should  have  order,  and  the  dress  should 
have  system.     The  Canon  of  History  says :  "  The  carriage 


GENERAL  PRINCIPLES  OF  CONSUMPTION 


199 


and  the  clothes  are  according  to  service.  Who  will  dare 
not  to  cultivate  a  humble  virtue?  Who  will  dare  not  to 
respond  to  this  rule  with  reverence?"  ^ 

The  significance  of  social  distinction  is  also  indicated  by 
N.  W.  Senior  as  follows: 

We  do  not,  of  course,  mean  it  to  be  inferred  that  all  personal 
expenditure  beyond  mere  necessaries  is  necessarily  unpro- 
ductive. The  duties  of  those  who  fill  the  higher  ranks  in 
society  can  seldom  be  well  performed  unless  they  conciliate 
the  respect  of  the  vulgar  by  a  certain  display  of  opulence.^ 

This  is  a  theory  similar  to  that  of  Confucius. 

Third  and  last,  they  have  an  economic  reason,  and  this 
is  the  most  important.  If  wealth  were  always  unlimited  for 
the  satisfaction  of  human  wants,  even  though  there  were  no 
regulation  of  consumption,  there  would  be  neither  moral 
corruption  nor  social  disorder.  But  the  great  trouble  is  that 
wealth  is  limited,  and  that  it  cannot  satisfy  the  wants  of 
everybody.  Hence  the  principles  of  distribution  come  in. 
Before  the  wealth  is  distributed,  the  Confucians  believe  that 
standards  of  consumption  according  to  the  social  standing 
should  first  be  set  forth.  If  consumption  had  no  legal 
standard,  and  were  regulated  only  by  the  law  of  final  utility. 
no  one  would  feel  quite  satisfied,  even  though  the  distribu- 
tion were  very  just.  This  is  because  human  wants  are  un- 
limited. The  Many  Dczvdrops  of  the  Spring  and  Atituinn 
says:  "The  objects  of  wants  are  limitless;  their  quantity 
never  can  be  enough.  Hence,  there  is  the  suffering  of 
poverty."  ' 

The  modern  economic  theory  is  to  increase  consumption 
in  order  to  increase  production.     But  the  theory  of  Con- 

'  Classics,  vol.  iii,  pt.  i,  pp.  83-4. 

•  Political  Economy,  pp.  56-7.  lik.  xxvii. 


200        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

fucius  is  to  limit  consumption.  Why  so  ?  In  ancient  China, 
there  was  no  machinery;  there  was  no  slavery;  agriculture 
was  the  principal  occupation;  and  every  kind  of  work  de- 
pended upon  the  two  hands.  Under  such  conditions,  how 
could  the  existing  production  be  increased?  Of  course, 
Confucius  appreciates  invention  and  improvement.  But, 
before  the  modern  machine  came  to  exist,  there  was  no 
epoch-making  advance  in  the  increase  of  production.  At 
that  age,  when  everyone  was  afraid  that  production  would 
fall  short  of  consumption,  who  should  dare  to  advise  the 
people  to  extend  consumption  in  order  to  stimulate  the 
increase  of  production  ?  Therefore,  the  regulation  of  con- 
sumption, although  not  a  happy  thing,  was,  nevertheless,  at 
that  time,  a  necessary  measure  for  economic  society. 

Furthermore,  the  limitation  of  consumption  had  the  effect 
of  encouraging  production.  By  production,  we  mean  both 
the  material  and  immaterial  production  of  value.  If  the 
higher  class  can  consume  more  than  the  lower,  and  the  lower 
are  jealous  of  the  higher,  the  lower  class  will  endeavor  to 
raise  themselves  to  the  higher  scale,  and  will  enjoy  the  same. 
According  to  the  principles  of  Confucius,  there  is  no  fixed 
social  order,  but  every  one  can  find  his  own  place  by  his 
contribution  to  society.  The  higher  classes  are  open  to 
everybody ;  or  anyhow  a  man  can  become  one  of  the  "  ap- 
pointed people  "  very  easily.  If  he  wants  to  consume  more, 
he  has  to  raise  himself  higher.  If  he  raises  himself  higher, 
he  produces  more  value  to  society;  and  if  he  consumes 
more,  the  aggregate  of  material  production  must  be  larger. 
Therefore,  the  regulation  of  consumption  does  not  prevent 
the  progress  of  society,  but  helps  it  along. 

(c)  Financial  Condition 
The  third  basis  for  the  regulation  of  human  wants  is  the 
financial  condition  of  individuals.     One  day  Tzu-lu  says: 


GENERAL  PRINCIPLES  OF  CONSUMPTION  201 

"Alas,  for  the  poor!  While  their  parents  are  alive  they 
have  not  the  means  to  nourish  them;  and  when  they  are 
dead,  they  have  not  the  means  to  perform  the  mourning  rites 
for  them."     Confucius  gives  him  the  lesson  as  follows: 

Bean  soup,  and  water  to  drink, ^  while  the  parents  are  made 
happy,  may  be  pronounced  filial  piety.  If  a  son  can  only  wrap 
the  body  round  from  head  to  foot,  and  inter  it  immediately, 
without  a  shell,  that  being  all  which  his  means  allow,  he  may 
be  said  to  discharge  all  the  rites  of  mourning.^ 

Again,  when  Tzu-yu  asks  about  the  articles  to  be  provided 
for  the  mourning  rites,  Confucius  says :  "  They  should  be 
according  to  the  means  of  the  family."  Tzu-yu  urges: 
**  How  can  one  family  that  has  means  and  another  that  has 
not  have  things  done  in  the  same  way?"  "  Where  there  are 
means,"  replies  Confucius,  "  let  there  be  no  exceeding  of  the 
prescribed  rites.  If  there  be  a  want  of  means,  let  the  body 
be  lightly  covered  from  head  to  foot,  and  forthwith  buried, 
the  coffin  being  simply  let  down  by  means  of  ropes.  Who 
in  such  a  case  will  blame  the  procedure?"  '  Moreover,  the 
"  Details  of  Rites  "  gives  a  general  princple  that  the  poor 
need  not  use  goods  and  wealth  to  discharge  the  rites.* 

Everyone  knows  that  Confucius  has  given  very  many  de- 
tails of  rites.  When  he  comes  to  economic  questions,  how- 
ever, he  describes  them  most  simply  and  convincingly.  Con- 
fucius, indeed,  is  a  very  practical  man.  The  principles  of 
h'fe  are  summed  up  by  him  thus  : 

The  superior  man  does  what  is  proper  to  the  position  in  which 
he  is ;  he  does  not  desire  anything  outside  of  it.     In  a  position 

*  Even  at  the  time  of  Confucius,  drinking  water  was  considered  a  mark 
of  poverty.     But,  at  present,  .America  uses  water  as  a  national  drink. 
>  Li  Ki,  bk.  ii,  p.  182. 
*  Ibid.,  pp.    153-4.  *  Ibid.,  hk.  i.  \k  78. 


202         THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

of  wealth  and  honor,  he  does  what  is  proper  to  a  position  of 
weahh  and  honor.  In  a  poor  and  low  position,  he  does  what 
is  proper  to  a  poor  and  low  position.  Situated  among  bar- 
barous tribes,  he  does  what  is  proper  to  a  situation  among 
barbarous  tribes.  In  a  position  of  sorrow  and  difficulty,  he 
does  what  is  proper  to  a  position  of  sorrow  and  difficulty. 
The  superior  man  can  find  himself  in  no  situation  in  which  he 
is  not  himself.^ 

One  may  say  that  consumption  according  to  means  is  a 
very  common  thing,  and  needs  no  special  teaching  from 
Confucius.  This  might  be  true.  When  we  study  the  hu- 
man wants,  however,  we  find  that  those  who  have  means 
will  spend  more  than  is  proper  for  them,  and  that  those  who 
have  no  means  will  spend  more  than  they  can  bear.  In  the 
former  case,  it  disturbs  the  social  order,  or  at  least  it  must 
be  an  economic  waste.  In  the  latter  case,  it  makes  the  poor 
poorer.  Although  the  poor  cannot  spend  beyond  a  certain 
limit,  they  may  still  use  up  all  they  have,  or  borrow  money 
in  the  expectation  of  future  income,  or  come  to  the  worst, 
corruption  and  robbery.  That  is  an  economic  and  social 
evil.  Furthermore,  even  if  a  man  spends  what  his  means 
allow,  but  is  not  satisfied  with  his  poor  condition,  his  mind 
still  suffers  great  pain.  By  the  teaching  of  Confucius,  he 
will  not  only  maintain  his  financial  condition,  but  also  enjoy 
a  good  deal  of  happiness  in  life.  The  "  Details  of  Rites  " 
says:  "  When  the  rich  and  noble  know  to  love  rites,  they  do 
not  become  proud  nor  dissolute.  When  the  poor  and  mean 
know  to  love  rites,  their  minds  do  not  become  cowardly 


f*  3 


(d)  Time  Element 

The  fourth  basis  for  the  regulation  of  wants  is  the  time 
element.     Tzu-ssu  says :  "  I  have  heard  that  when  there  are 

^  Classics,  vol.  i,  p.  395.  2  [^i  j<^i  \^\^   {^  p   65. 


GENERAL  PRINCIPLES  OF  CONSUMPTION 


203 


certain  rites  to  be  observed,  and  he  has  not  the  necessary 
wealth,  a  superior  man  does  not  observe  them,  and  that 
neither  does  he  do  so,  when  there  are  the  rites,  and  he  has 
the  weahh,  but  the  time  is  not  suitable."  ^  When  he  speaks 
of  the  rites,  he  refers  to  the  ethical  considerations,  the  social 
orders,  and  all  the  other  proper  rules.  These  principles  have 
been  discussed  above.  We  shall  discuss  the  time  element 
now. 

The  principle  of  the  time  element  is  very  broad ;  it  takes 
into  consideration  all  the  things  that  are  related  to  the  period 
when  the  wealth  is  spent.  Above  all,  however,  the  national 
spirit  is  a  most  important  consideration.  Ts'eng  Tzu  says: 
"  When  a  nation  is  not  well  governed,  the  superior  man  is 
ashamed  to  observe  all  rites  to  the  full.  When  a  nation  is 
extravagant,  he  shows  an  example  of  frugality.  When  a 
nation  is  frugal,  he  shows  an  example  of  the  strict  observ- 
ance of  all  rites."  '  Therefore,  the  national  spirit  is  the 
chief  barometer  of  the  time,  and  determines  the  scale  of 
spending.  But  we  must  understand  that  the  superior  man 
does  not  bend  himself  to  follow  the  national  spirit,  but  raises 
himself  as  a  guide  for  the  correction  of  his  nation.  This  is 
the  principle  of  the  golden  mean,  that  is  to  say,  not  adding 
anything  to  the  prevailing  habit,  or  tending  toward  either 
extreme,  but  drawing  the  nation  of  that  age  back  and  keep- 
ing it  in  the  middle  way. 

Confucius  says:  "  When  good  order  does  not  prevail  in 
the  state,  one  should  not  use  the  full  dress  as  prescribed."  ' 
And  **  Small  Rules  of  Demeanor  "  also  says :  **  When  a 
state  is  at  the  time  of  luxury  and  decay,  the  carriages  are 
not  carved  and  painted ;  the  buff-coats  are  not  adorned  with 
ribbons  and  cords;  anrl  the  dishes  are  not  carved:  the  super- 

^  Li  Ki,  bk.  ii,  p.   152.  '  C/.  ibid.,  p.  175. 

•  Ibid.,  I)k.  xi.  p.   II. 


204        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

ior  man  does  not  wear  shoes  of  silk;  and  horses  are  not  reg- 
ularly supplied  with  grain."  '  These  five  things  are  given 
as  examples  of  showing  frugality  during  times  of  national 
extravagance. 

As  China  is  an  agricultural  country,  the  condition  of  the 
crops  is  very  important  in  judging  of  the  time  element.  If 
the  crop  fails,  consumption  ought  to  be  cut  down.  The 
eleventh  book  of  the  Record  of  Rites  says :  "  If  the  year  is 
not  good  and  fruitful,  the  emperor  wears  white  and  plain 
robes,  rides  in  the  plain  and  unadorned  carriage,  and  has 
no  music  at  his  meals."  It  says  again:  "  If  the  year  is  not 
good  and  fruitful,  the  ruler  wears  linen,  and  sticks  in  his 
girdle  a  tablet  made  of  bamboo  instead  of  ivory  ...  No 
earthworks  are  undertaken.  The  great  officials  do  not  make 
any  new  carriage  for  themselves."'     Its  first  book  says: 

In  bad  years,  when  the  grain  of  the  season  does  not  come  to 
maturity,  the  ruler  at  his  meals  will  not  make  the  usual  offer- 
ing of  the  lungs  [that  is,  he  will  not  take  more  than  one  kind 
of  meat]  ;  nor  will  his  horses  be  fed  on  grain.  His  special 
road  will  not  be  kept  clean  and  swept,  nor  even  at  sacrifices 
will  his  musical  instruments  be  suspended  on  their  stands. 
Great  ofiicials  will  not  eat  the  large-grained  millet;  and  the 
students  will  not  have  music,  even  at  their  drinkings.-^ 

In  the  Spring  and  Autumn,  there  is  a  principle  that  the 
construction  of  any  public  work  should  not  be  performed 
during  a  bad  year.  The  fundamental  idea  is  that,  in  a  bad 
year,  all  expenditures  should  be  cut  down  to  the  minimum. 
Since  the  work  of  construction  is  most  expensive,  the  Spring 
and  Autumn  takes  it  as  an  example.  But  we  must  under- 
stand that,  in  ancient  times,  the  public  work  was  done  by 

'  ^-i  Ki,  bk.  XV,  p.  8i.  2  Ibid.,  bk.  xi,  pp.  2,  4. 

'  Ibid.,  bk.  i,  p.  106. 


GENERAL  PRINCIPLES  OF  CONSUMPTION  205 

forced  labor;  hence,  if  the  people  were  employed  in  a 
bad  year,  they  would  suffer  more  severely  than  usual.  Since 
hired  labor  was  established  in  the  Sung  dynasty,'  public 
work  is  now  advisable  for  the  help  of  the  poor  in  a  bad  year. 
This  scheme  is  carried  out  in  order  to  give  the  people 
public  employment  instead  of  alms,  because  thus  they  can 
receive  wages. 

When  a  crop  is  bad,  not  only  should  human  beings  cut 
down  their  consumption,  but  the  gods  also  should  suffer 
for  it.     The  ninth  book  of  Record  of  Rites  says : 

The  Cha  with  its  eight  sacrifices  serves  to  record  the  condi- 
tion of  the  people  throughout  all  the  (juarters  of  the  empire. 
If  in  any  quarter  the  year  has  not  been  good,  the  gods  of  that 
quarter  are  excluded  from  such  sacrifices  held  in  the  imperial 
state,  in  order  to  notify  these  people  that  they  should  be  very 
careful  in  the  use  of  their  wealth.  If  those  quarters  have  had 
a  good  year,  such  sacrifices  are  opened  to  their  gods,  in  order 
to  please  those  people,  that  they  should  have  enjoyment." 

By  this  rule,  the  gods  share  sorrow  and  joy  with  the  people. 
In  fact,  in  a  bad  year,  religious  expense  must  be  cut  down. 
Confucius  says  that  *'  victims  lower  than  a  man's  stand- 
ard requires  should  be  used."  ^ 

Supplementing  the  time  element,  is  a  consideration  for  the 
place.  The  Canon  of  History  says:  **  Loving  the  products 
of  your  land  only,  the  heart  will  be  good."  '  This  means 
that  you  will  not  fall  into  temptation,  if  you  have  no  desire 
for  the  luxurious  things  from  other  lands.  This  seems  more 
ethical  than  economic. 

^  See  infra. 

'  Cf.  Li  Ki.  bk.  ix,  p.  434. 

•  Ibid.,  bk.   xviii,   p.    166. 

•  Cf.  Classics,  vol.  iii,  pt.  ii,  p.  403. 


2o6        ^^^  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

But  there  is  also  a  real  economic  teaching  on  this  point. 
The  Record  of  Rites  says : 

What  the  land  does  not  produce  will  not  be  used  by  a  superior 
man  in  performing  the  rites.  ...  If  mountaineers  were  to 
seek  to  use  fish  and  turtles  in  their  rites,  or  the  dwellers  near 
lakes,  deer  and  pigs,  the  superior  man  would  say  of  them  that 
they  did  not  know  the  nature  of  those  usages.^ 

This  is  both  economic  and  economical.  On  the  one  hand, 
the  rites  are  easily  performed,  because  they  do  not  require 
certain  things  from  another  land.  But  on  the  other  hand, 
money  is  saved,  because  it  spares  the  unnecessary  expense 
of  getting  something  away  from  their  own  land. 

1  Li  Ki,  bk.  viii,  pp.  395-6. 


CHAPTER  XIII 
Happiness  for  Both  Rich  and  Poor 

When  we  study  the  proposition  that  consumption  should 
accord  with  one's  financial  condition,  we  see  that  Confucius 
would  make  everyone  contented  with  his  own  lot.     But  we 
shall  inquire  further  to  see  how  Confucius  creates  happi- 
ness for  both  the  rich  and  the  poor.     For,  if  we  say  that 
one's  consumption  should  be  according  to  his  means,  the 
consumer  might  still  feel  economic  pressure  because  he  can- 
not do  otherwise.     But,   if  we  say  that  one  always  finds 
pleasure    in    whatever    he    consumes,    independent    of    the 
amount,  then  the  consumer  is  really  a  happy  man ;  and  this 
is  especially  true  when  he  is  poor.     In  the  former  case,  the 
consumer  adapts  himself  to  his  condition,  and  needs  some 
effort  to  regulate  his  wants.      In  the  latter  case,  the  con- 
sumer raises  himself  above  his  condition,  and  pays  no  at- 
tention to  his  wants.     It  is  the  highest  ideal  in  economic 
life,  and   it  is  nevertheless  very  practicable   for  everyone. 
This  is  the  value  of  the  teachings  of  Confucius. 

I.    HAPPINESS  OF  THE  RICH 

I.  Coutnitfuent  zi'ith  Means  Possessed 

For  ihe  consumption  of  the  rich,  the  principle  is  con- 
tentment with  means  possessed.  Wealth  does  not  make  the 
rich  happy,  but  contentment  does.  Confucius  sometimes 
said  of  Prince  Ching  of  Wei  that  he  knew  the  economy  of  a 
family  well.  When  he  began  to  have  means,  he  said,  "  Ha ! 
here  is  a  collection !"     When  they  were  a  little  increased, 

2C7 


2o8        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

he  said,  ''Ha!  this  is  complete."  When  he  had  become 
rich,  he  said,  "  Ha !  this  is  admirable !"  ^  These  utter- 
ances are  not  the  exact  expressions  of  Prince  Ching,  but 
they  represent  his  feelings  as  described  by  Confucius.  He 
sets  forth  Prince  Ching  as  a  good  example  of  managing  the 
household.  The  essential  thing  is  that  Ching  did  not  care 
much  for  getting  wealth,  because  his  wants  were  few  and 
were  easily  satisfied.  He  was  contented  with  what  he  had, 
30  that  he  was  very  cheerful  through  all  the  three  periods 
of  his  economic  life. 

Everyone  ought  to  be  contented  with  what  he  possesses; 
then  he  may  find  himself  rich.  If  he  is  not  contented, 
even  if  he  be  an  emperor,  he  will  still  find  himself  poor,  and 
his  hunting  for  wealth  will  never  cease.  But  how  can  he 
be  contented?  He  should  accept  his  economic  condition 
as  it  is,  and  not  extend  his  wants  beyond  his  means. ^  In 
modern  times,  if  the  millionaire  followed  the  teaching  of 
Confucius,  there  would  be  no  suicide  on  account  of  economic 
troubles. 

II.    HAPPINESS  OF  THE  POOR 

I.  Personal  Pride 
For  the  consumption  of  the  poor,  the  primitive  principle 
is  that  personal  pride  should  not  be  affected  by  one's  econo- 
mic condition, — that  is,  personality  is  worthier  than  any 
material  thing  outside  of  oneself.  Confucius  says:  "A 
student,  whose  mind  is  set  on  truth,  and  who  is  ashamed  of 
bad  clothes  and  bad  food,  is  not  fit  to  be  discoursed  with."  ^ 
To  respect  oneself  as  the  most  valuable  object  in  the  world, 
and  to  pay  no  attention  to  whatever  one  consumes,  this  is 

'  Classics,  vol.  i,  p.  266. 

2  Han's  External  Commentary  of  the  Canon  of  Poetry,  bk.  v. 

3  Classics,  vol.  i,  p.  168. 


HAPPIXESS  FOR  BOTH  RICH  AND  POOR 


209 


the  first  step  to  obtain  the  truth  of  Confucius.  And  it  is 
a  very  simple,  but  very  effective,  way  to  make  the  poor 
happy. 

Confucius  speaks  of  Tzu-lu,  whose  personal  name  is  Yu. 
He  says: 

Dressed  himself  in  a  tattered  robe  quilted  with  hemp,  yet 
standing  by  the  side  of  men  dressed  in  furs  of  fox  or  badger, 
and  not  ashamed ; — ah  !  it  is  Yu  who  is  like  this ! 

"  He  has  no  jealousy  and  no  entreaty; — 
What  is  not  good  when  he  does  anything?"^ 

The  last  two  sentences  are  quoted  from  the  Canon  of 
Poetry  in  admiration  of  Tzu-lu.  When  anyone  is  ashamed 
because  he  is  poor,  he  may  either  be  jealous  of  the  rich,  or 
entreat  them  for  something.  But  neither  is  good.  The 
best  thing  is  to  maintain  personal  dignity  and  disregard 
material  welfare. 

When  Confucius  describes  the  different  types  of  the  con- 
ducts of  the  Ju,  the  Confucian,  he  gives  one  type  as  this: 

The  Ju  may  have  a  house  in  only  one  acre  of  ground ;  its  apart- 
ment is  ten  feet  in  width  and  height ;  the  outer  door  is  made  of 
thorns  and  bamboos,  and  its  side  door  is  simply  an  opening  of 
the  wall,  long  and  pointed ;  the  inner  door  is  stopped  up  by 
brushwood,  and  the  little  round  window  is  like  a  jar's  mouth. 
The  members  of  the  family  may  have  to  exchange  alternateiy 
the  same  clothes  when  they  go  out.  They  may  have  to  make 
one  day's  food  serve  for  two  days.  Despite  such  a  condition, 
if  the  ruler  responds  to  him.  he  does  not  lose  his  confidence; 
and  if  the  ruler  does  not  respond,  he  does  not  offer  any  flattjry. 
This  is  the  type  when  the  Ju  take  the  small  office  for  the  le- 
lief  of  poverty.' 

'  Classics,  vol.  i,  p.  225. 

■  I.i  Ki,  bk.  xxxviii,  pp.  405-6. 


2IO        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

From  this  passage,  we  can  see  how  strong  is  the  character 
of  a  Confucian.  No  matter  how  poor  may  be  his  shelter, 
clothing  and  food,  he  is  confident  of  his  principles,  and  is 
honorable  because  of  his  personality.  This  law  is  given 
by  Confucius  to  dignify  his  followers. 

The  poor  feel  unhappy  about  their  consumption  not  only 
because  it  is  difficult  for  them  to  satisfy  their  physical  needs, 
but  mainly  because  they  cannot  reach  a  higher  social  stand- 
ard, and  so  they  fear  to  have  no  standing  in  society.  To 
cure  such  a  feeling,  and  to  raise  oneself  above  petty  so- 
cial ambitions,  it  is  well  to  read  the  passage  of  Mencius. 
He  says : 

To  desire  to  be  honored  is  the  common  feeling  of  men.  But 
all  men  have  in  themselves  that  which  is  truly  honorable. 
Only  they  do  not  think  of  it.  The  honor  which  some  men 
confer  on  others  is  not  good  honor.  Those  whom  Chao  the 
Great  ^  ennobles  he  can  make  mean  again.  It  is  said  in  the 
Canon  of  Poetry:  "  He  has  filled  us  with  wine;  he  has  satiated 
us  with  virtue."  "  Satiated  us  with  virtue  "  means  satiated  us 
with  love  and  justice,  and  he  who  is  so  satiated,  consequently 
does  not  wish  for  fat  meat  and  fine  millet  of  men.  When  a 
good  reputation  and  far-reaching  praise  fall  to  him,  he  d-jes 
not  desire  the  elegant  embroidered  garments  of  men.^ 

When  one  reads  this  chapter,  he  will  certainly  find  him- 
self very  worthy,  and  he  will  get  from  himself  real  satis- 
faction, even  truer  and  better  than  that  from  material  things. 
Such  a  theory  is  not  based  upon  an  ideal  imagination,  but 
upon  real  facts..  As  Mencius  points  out,  ''those  whom 
Chao  the  Great  ennobles  he  can  make  mean  again  ".  How 
can  such  a  temporary  and  uncertain  honor  be  worth  while 

*  This  title  was  borne  by  four  ministers  of  the  family  of  Chao,  who 
at  different  times  held  the  chief  sway  in  the  state  of  Tsin. 
'  Classics,  vol.  ii,  pp.  419-20. 


HAPPINESS  FOR  BOTH  RICH  AND  POOR  21 1 

to  a  man  who  is  really  noble  in  himself?  One  can  make  no 
comparison  between  the  virtue  and  reputation  which  a 
worthy  man  enjoys  and  the  food  and  clothes  which  a  rich 
man  consumes,  because  the  satisfaction  in  the  former  case 
is  too  great  to  be  compared  with  that  in  the  latter.  As 
soon  as  one  understands  this  truth,  he  will  occupy  the  most 
honorable  position  in  society,  no  matter  how  poor  he  may  be. 
Mencius  has  a  great  deal  of  pride  and  expresses  this  most 
frankly.     He  says : 

Those  who  give  counsel  to  the  great  should  despise  them, 
and  not  look  at  their  pomp  and  display.  Halls  several  times 
eight  cubits  high,  with  beams  projecting  several  cubits, — 
these,  if  my  wishes  were  to  be  realized,  I  would  not  have. 
Food  spread  before  me  over  ten  cubits  square,  and  attendants 
and  concubines  to  the  number  of  hundreds, — these,  though  my 
wishes  were  realized,  I  would  not  have.  Excessive  pleasure 
in  drinking,  and  the  dash  of  hunting,  with  a  thousand  chariots 
following  after  me, — these,  though  my  wishes  were  realized, 
I  would  not  have.  What  they  esteem  are  what  I  would  have 
nothing  to  do  with  ;  what  I  esteem  are  the  rules  of  the  an- 
cients.   Why  should  I  be  afraid  of  them  ?  ^ 

In  fact,  if  we  maintain  our  high  moral  standard,  although 
our  standard  of  living  be  low,  we  are  never  afraid  of  the  rich. 
The  superiority  of  virtue  over  wealth  is  a  principle  of 
Confucius,  and  it  has  become  the  national  spirit  of  the 
Chinese.  Adam  Smith  points  out  four  causes  of  subordin- 
ation, namely,  (i)  the  superiority  of  personal  qualitications 
— strength,  beauty,  and  agility  of  body,  wisdom  and  virtue, 
prudence,  justice,  fortitude,  and  moderation  of  mind;  (2) 
the  superiority  of  age;  (3)  the  superiority  of  fortune;  and 
(4)  the  sui)eriority  of  birth.  Mencius  eiumierates  only  three 
things  worthy  of  honor;  he  sums  up  the  personal   quali- 

'  Classics,  vol.  ii.  p.  496. 


212        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

fications  in  the  word  virtue,  combines  the  two  elements, 
fortune  and  birth,  in  the  word  nobihty,  and  counts  age  as 
a  separate  one/ 

The  classification  of  Mencius  is  essentially  the  same  as 
that  of  .,\dam  Smith.  But  their  theories  are  entirely  dif- 
ferent. The  theory  of  Smith  is  based  on  general  facts,  so 
that  he  thinks  fortune  is  the  most  important  of  all  the  four 
causes  in  getting  authority.  The  theory  of  Mencius  is  an 
ideal,  though  also  based  on  facts,  so  that  he  puts  virtue  as 
the  most  honorable  thing.  Smith's  theory  may  be  true 
when  he  refers  to  the  western  world,  but  Mencius'  theory 
also  is  true  when  he  speaks  of  China.  China  has  honored 
virtue  above  anything  else,  and  this  is  a  peculiar  product 
of  Confucius.  Smith  says :  "  There  never  was,  I  believe, 
a  great  family  in  the  world  whose  illustration  was  entirely 
derived  from  the  inheritance  of  wisdom  and  virtue."  ^  But, 
in  China,  besides  the  family  of  Confucius,  there  still  are 
many  families  of  his  disciples,  and  of  the  greatest  Con- 
fucians of  the  Sung  dynasty,  whose  illustriousness  is  de- 
rived entirely  from  the  inheritance  of  wisdom  and  virtue. 
Although  their  descendants  do  not  possess  virtue  equal  to 
that  of  their  ancestors,  the  Chinese  confer  upon  them  special 
nobility  in  honor  of  the  virtue  of  their  ancestors. "  Creating 
the  real  nobility  in  honor  of  virtue,  leaving  the  descendants 
of  the  great  princes,  great  kings  and  great  emperors  in  the 
background,  and  giving  no  honor  at  all  to  the  millionaires, 
— this  is  the  influence  of  Confucius.  Under  his  influence, 
the  poor  really  do  not  lose  social  standing  on  account  of 
their  low  standard  of  life,  if  they  in  themselves  are  worth 
anything. 

Confucius  first  teaches  the  poor  how  to  maintain  personal 

^  Classics,  vol.  ii,  pp.  213-4. 

'  Wealth  of  Nations,  vol.  ii,  pp.  204-6.    Cannan's  edition. 


HAPPINESS  FOR  BOTH  RICH  AND  POOR 


213 


dignity  over  and  ag^ainst  material  wealth,  and  second,  he 
teaches  society  how  to  appreciate  the  honor  of  virtue  over 
and  above  the  power  of  fortune.  Following  his  teaching, 
virtue  really  holds  the  place  of  honor  in  the  Chinese  social 
life.  Such  a  national  spirit,  during  the  Latter  Han  dynasty, 
and  the  Sung  and  the  Ming  dynasties,  flourished  at  its  best 
times ;  even  at  the  present  day,  it  still  prevails  over  the  whole 
empire.  It  is  the  flower  of  China,  and  the  fruit  of  Con- 
fucius. Although  it  may  retard  material  development  to 
some  extent,  it  has  brought  a  large  sum  of  happiness  to 
society.  Indeed.  Confucius  makes  man  far  nobler  than 
wealth. 

2.   Pleasure  in  Truth 

The  highest  principle  for  the  consumption  of  the  poor  is 
that  the  pleasure  in  truth  should  not  be  affected  by  the  eco- 
nomic condition ;  that  is.  pleasure  in  truth  is  the  most  en- 
joyable thing,  and  there  is  nothing  else  able  to  attract  the 
mind.  This  is  the  highest  type  of  living  for  the  poor.  It 
is  an  advance  over  the  primitive  principle.  For,  if  we  main- 
tain personal  pride  against  material  wealth,  we  still  feel  that 
we  are  poor  in  something,  and  that  the  wealth  is  there,  in 
our  minds.  We  must  make  a  comparison  between  our  im- 
material riches  and  the  material  riches  of  others.  Hence, 
we  hold  our  honor  with  some  purpose,  and  struggle  for  so- 
cial standing  with  some  effort.  But,  if  we  enjoy  the  pleas- 
ure of  truth,  and  have  no  concern  whatever  when  we  con- 
sume anything,  we  really  forget  i)ur  own  condition,  and 
ignore  the  wealth  of  others.  Hence,  we  live  naturally  with 
great  pleasure,  and  raise  our  minds  far  above  the  economic 
world.    This  is  the  happiest  type  of  the  living  of  Confucians. 

To  illustrate  this  principle,  Confucius  gives  his  own  case. 
He  says :  **  With  coarse  rice  to  eat,  with  water  to  drink,  and 
my  bended  arm   for  a  pillow.   I  still  have  pleasure   in  the 


214 


THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 


midst  of  these  things.  Riches  and  political  position  ac- 
quired by  unrighteousness  are  to  me  as  a  floating  cloud."  ^ 
He  takes  great  pleasure  in  truth;  even  in  great  poverty, 
he  does  not  suffer  any  pain,  nor  is  his  pleasure  affected. 
We  must  understand  that  he  does  not  regard  those  things 
as  his  pleasure,  but  simply  that  those  things  have  no  in- 
fluence upon  his  pleasure. 

Confucius  gives  also  the  case  of  Yen  Yiian,  whose  per- 
sonal name  is  Hui.     He  says : 

Admirable  indeed  is  the  virtue  of  Hui !  With  a  single  bamboo 
dish  of  rice,  a  single  gourd  dish  of  drink,  and  living  in  his 
mean,  narrow  lane,  while  others  could  not  have  endured  the 
distress,  he  does  not  allow  his  pleasure  to  be  affected  by  it. 
Admirable  indeed  is  the  virtue  of  Hui !  ^ 

This  is  an  extreme  case  showing  that  happiness  can  be  in- 
dependent of  poverty.  Yen  Yiian  did  not  take  his  poverty 
as  a  pleasure,  but  enjoyed  his  own  pleasure,  which  was  not 
affected  by  poverty. 

Confucius  does  not  forbid  the  people  to  make  a  living; 
he  simply  teaches  them  that  they  should  not  let  their  happi- 
ness depend  upon  material  wealth.  The  creating  of  true 
happiness  beyond  the  material  world,  and  the  elevating  of 
the  mind  to  be  independent  of  physical  needs,  are  the  essen- 
tials of  his  teaching.  Moreover,  the  type  of  Confucius  and 
Yen  Yiian  is  the  highest  standard,  especially  for  those  who 
devote  themselves  to  the  study  of  truth.  Hence,  they  should 
find  great  pleasure  in  truth,  and  should  not  disturb  their 
minds  with  material  things.  But,  for  the  common  people 
in  general,  to  make  a  living  is  their  duty.  Even  though 
their  happiness  is  affected  by  their  economic  condition,  Con- 
fucius excuses  them.     Therefore,  while  Confucius  is  anxious 

*  Classics,  vol.  i,  p.  200.  '  Ibid.,  o.  188. 


HAPPINESS  FOR  BOTH  RICH  AND  POOR 


215 


to  provide  a  good  condition  for  the  common  people,  he 
gives  the  highest  standard  to  inspire  the  superior  man.  But, 
ahhough  the  common  people  are  not  expected  to  realize 
this  highest  principle,  they  may  still  know  that  happiness  is 
independent  of  the  mode  of  living,  when  they  study  the 
teachings  of  Confucius.  Hence,  they  may  enjoy  their  life 
better,  even  though  they  are  poor. 


CHAPTER  XIV 

Different  Ways  of  Getting  Pleasure 

When  we  consume  anything,  we  get  pleasure;  hence,, 
whenever  we  get  pleasure  out  of  material  things,  it  is  con- 
sumption. According  to  Confucius,  there  are  many  ways 
to  get  pleasure.  But  we  may  study,  a  few  things  which 
particularly  belong  to  Confucius,  and  serve  as  means  of 
obtaining  pleasure. 

There  is  a  general  principle  of  enjoying  pleasure,  which 
is  given  by  Mencius.  To  enjoy  pleasure  by  one's  self  alone, 
is  not  so  pleasurable  as  to  enjoy  it  with  others.  To  enjoy 
pleasure  with  a  few  is  not  so  pleasurable  as  to  enjoy  it  with 
many.^  Bearing  this  general  principle  in  mind,  we  shall 
know  that  the  ways  of  getting  pleasure  are  really  good  ways. 

I.    MUSIC 

First,  Confucius  was  very  fond  of  music.  When  he  was 
in  Ch'i,  he  heard  the  Shao,  the  music  of  Emperor  Shun, 
and  he  did  not  know  the  taste  of  flesh  for  three  months. 
"  I  did  not  think  ",  he  said,  *'  that  music  could  have  been 
made  so  excellent  as  this !"  ^  Again,  he  said :  ''  From  the 
beginning  of  singing  of  Music-master  Chih,  to  the  end  of 
the  six  pieces  ^  of  which  Kuan  Chii  is  the  first  one, — how 
magnificently  it  fills  the  ears !"  *     These  two  expressions 

^  Cf.  Classics,  vol.  ii,  p.  151.  ^  Ibid.,  vol.  i,  p.  i99- 

•  They  are  the  first  three  poems  in  the  first  and  second  books  of  the 

Canon   of  Poetry. 

*  Classics,  vol.  i,  p.  213. 

216 


DIFFERENT  WAYS  OF  GETTING  PLEASURE         217 

show  how  Confucius  delights  in  the  enjoyment  of  music. 
In  fact,  his  liking  for  music  was  much  greater  than  that 
for  flesh,  and  its  pleasure,  appealing  to  his  ears,  was  much 
greater  than  that  which  appealed  to  his  appetite. 

Confucius  regards  music  as  necessary  to  daily  life.  The 
**  Details  of  Rites  "  says :  ''  Without  some  sad  cause,  a  great 
official  should  not  remove  his  music-stand  away,  nor  a  stu- 
dent his  lutes."  ^  \\t  learn  from  the  Analects,  that  Con- 
fucius sang  every  day,  except  after  he  had  wept  for  a 
mourning  on  the  same  day.  When  Confucius  was  singing 
together  with  some  one,  if  the  one  sang  well,  he  usually 
made  him  repeat  it,  and  then  he  followed  it  with  his  own 
voice."  The  word  sing  in  the  old  sense  of  the  Chinese 
always  means  that  there  is  an  accompaniment  of  musical 
instruments.  Therefore,  Confucius  got  pleasure  from 
music,  not  only  as  a  listener,  but  mostly  as  a  player  and 
a  singer. 

Confucius  taught  music  not  only  to  his  pupils,  but  also 
to  the  officials.  He  gave  instruction  to  the  Grand  Music- 
master  of  Lu  as  follows : 

The  spirit  of  music  may  be  known.  At  the  commencement 
of  music  [ringing  out  the  bells  for  the  playing  of  the  piece  of 
Ssu  Hsia],  there  is  a  movement  in  the  hearts  of  men.  A  httle 
later  [when  the  men  sing  together],  there  is  a  harmony. 
[When  the  organ  is  played  only  with  tunes  to  which  there  are 
no  words],  there  is  a  distinction  among  the  different  tunes. 
[When  the  singing  of  men  and  the  playing  of  organ  take  place 
alternately],  there  is  a  continuation.  [After  the  music  is 
closed  with  the  six  pieces  of  wliicli  Kuan  Chii  is  the  firsij.  it 
is  complete.^ 

*  Li  Ki,  bk.  i,  p.  106. 

"  Classics,  vol.  i,  pp.  197.  205. 

•"'  Cf.   ibid.,  p.   163. 


2i8        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

This  was  the  arrangement  of  music  by  Confucius  himself, 
and  he  described  his  appreciation  of  it. 

A  great  achievement  of  Confucius  was  the  reformation  of 
music.  He  said :  ''  Since  I  have  returned  from  Wei  to  Lu, 
the  music  is  reformed  and  the  tunes  of  ya  and  sitng  find 
their  proper  places."  ^  Confucius  loved  music,  but  he  hated 
vulgar  music.  He  said :  "  I  hate  the  tunes  of  Cheng 
which  confound  the  music  of  the  ya.''  '^  Cheng  was  a  com- 
mercial state  during  the  Eastern  Chou  dynasty;  its  influ- 
ence was  immoral,  and  its  music  was  licentious;  hence  all 
kinds  of  vulgar  music  were  called  the  tunes  of  Cheng. 
Therefore,  the  reformation  of  music  of  Confucius  was  the 
reformation  of  tunes.  The  tunes  of  ya  and  sung  found 
their  proper  places,  and  they  were  not  confounded  by  those 
of  Cheng.  Confucius  made  music  an  object  of  pleasure, 
but  did  not  allow  it  to  be  licentious.  He  said :  ''  Kuan  Chii 
[and  the  two  following  pieces]  ^  are  expressions  of  pleasure 
without  being  licentious,  and  of  grief  without  hurtful  ex- 
cess."      This  is  the  principle  of  the  music  of  Confucius. 

The  theory  of  music  is  given  in  the  "  Record  of  Music," 
and  we  may  select  a  few  passages  from  it,  and  rearrange 
them. 

For  the  origin  of  music,  the  ''  Record  of  Music  "  says  : 

All  the  modulations  of  the  voice  arise  from  the  mind,  and 
the  various  affections  of  the  mind  are  produced  by  things  ex- 
ternal to  it.  The  affections  thus  produced  are  manifested  in 
the  sounds  that  are  uttered.  Changes  are  produced  by  tVe 
way  in  which  those  sounds  respond  to  one  another ;  and  those 

^  Cf.   Classics,  vol.  i,  p.  221. 
'  Ibid.,   p.   326. 

»  They  are  the  first  three  poems  in  the  first  book  of  the  Canon  of 
Poetry. 

*  Classics,  vol.  i,  p.  i5i. 


DIFFERENT  WAYS  OF  GETTING  PLEASURE 


2ig 


changes  constitute  what  we  call  the  modulations  of  the  voice. 
The  combination  of  those  modulated  sounds,  so  as  to  give 
pleasure,  and  the  direction  in  harmony  with  them  of  the 
shields  and  axes,  the  plumes  and  ox-tails,  constitute  what  we 
call  music. ^ 

This  is  the  definition  of  music  which  includes  the  movement 
of  dance  or  pantomime.  In  short,  music  is  the  product  of 
the  human  mind. 

Anything  arising  from  the  mind  of  man,  however,  is  not 
artificial,  but  natural.  The  ''Record  of  Music"  says: 
**  The  influences  of  heaven  and  earth  and  all  the  various 
things  flow  forth  and  never  cease;  and  they  join  together 
to  form  one  great  harmony,  and  then  produce  the  changes : 
— in  accorctenJe  with  this,  there  is  music."  "  Indeed,  music 
is  a  natural  product  of  the  universe,  and  man  is  but  an 
imitator  of  nature. 

Concerning  the  reasons  why  music  was  made  an  institu- 
tion, the  "  Record  of  Music  "  says: 

Music  is  an  object  of  pleasure,  that  which  the  nature  of  man 
cannot  be  without.  Pleasure  must  be  expressed  in  the  modu- 
lations of  the  voice  and  manifested  in  the  movements  of  the 
body ;  such  is  the  rule  of  humanity.  These  modulations 
and  movements  are  the  changes  required  by  human  nati^re, 
and  they  are  found  complete  in  music.  Thus  men  will  not  live 
without  pleasure,  and  pleasure  will  not  exist  without  its  em- 
bodiment;  but  if  that  embodiment  be  not  conducted  accord- 
ing to  principle,  it  is  impossible  to  prevent  disorder.  The 
ancient  kings,  feeling  that  they  would  be  ashamed  in  the  event 
of  such  disofdcr,  appointed  the  tunes  and  words  of  the  ya 
and  the  sung  to  guide  the  pleasure.  They  made  the  notes 
give  sufficient  pleasure  without  any  intermixture  of  what  was 
bad,  the  words   afford   sufficient   for   discussion   without   ex- 

*  Li  Ki.  bk.  xvii,  p.  92.  *  Ibid.,  p.   102. 


220        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

hausting  their  senses.  And  they  directed  the  voice  in  sing- 
ing, whether  tortuous  or  straight,  the  sounds  of  musical  instru- 
ments, whether  increasing  or  diminishing,  whether  small  or 
great,  and  the  process  of  playing,  whether  pausing  or  starting; 
all  sufficient  to  stir  up  in  the  minds  of  the  hearers  what  was 
good  in  them,  without  inducing  any  looseness  of  thought,  or 
depraved  air.  Such  was  the  way  of  framing  music  of  the 
ancient  kings. ^ 

Music  has  two  functions :  the  one  is  for  the  administration 
of  pleasure,  and  the  other  is  for  the  guidance  of  it,  in  order 
to  keep  it  in  the  right  v\^ay. 

The  relation  between  music  and  society  is  very  close. 
First,  society  has  its  influence  upon  music  as  the  ''  Record 
of  Music  "  says :  *     » 

The  airs  of  an  age  of  good  order  are  peaceful  and  pleasant; 
they  indicate  the  harmony  of  the  government.  The  airs  of 
an  age  of  disorder  are  dissatisfied  and  angry ;  they  indicate  the 
confusion  of  the  government.  The  airs  of  a  state  going  to 
ruin  are  grievous  and  gloomy;  they  indicate  the  suffering  of 
the  people.  The  spirit  of  the  airs  is  connected  with  the  gov- 
ernment.^ 

In  turn,  music  has  its  influence  upon  society.  The 
"  Record  of  Music  "  says : 

When  the  airs  are  quick,  small,  dry  and  short,  the  people  are 
gloomy  and  sad.  When  the  airs  are  gentle,  harmonious,  slow, 
and  easy,  having  various  styles,  but  in  a  simple  way,  the  people 
are  comfortable  and  pleasant.  When  the  airs  are  coarse  and 
violent,  so  as  to  excite  the  body  and  cause  anger,  the  people  are 
resolute  and  daring.  When  the  airs  are  pure,  straightforward, 
strong,  correct,  grave,  and  true,  the  people  are  sober  and 
respectful.     When  the  airs  are  liberal  and  graceful,  as  a  re- 

^  Li  Ki,  bk.  xvii,  p.  127.  2  Ibid.,  pp.  93-4. 


DIFFEREXT  IV AYS  OF  GETTIXG  PLEASURE         22 1 

suit  of  orderly  performance  and  harmonious  action,  the  people 
are  kind  and  loving.  When  the  airs  are  uncontrolled,  perverse, 
immoral,  dissipated,  barbarous,  and  irregular,  the  people  are 
licentious  and  disordered.^ 

Therefore,  at  first,  music  is  a  product  of  the  mind  of  man ; 
whenever  his  mind  is  affected  by  either  a  good  or  a  bad 
thing,  his  music  will  be  either  good  or  bad.  But,  at  the 
last,  man  is  a  subject  under  the  influence  of  music;  when- 
ever the  music  is  either  good  or  bad,  he  will  be  moved 
either  way.  Man  and  music  interact  upon  each  other. 
Hence,  man  should  be  very  careful  about  the  affections, 
which  come  to  his  mind  from  external  things  and  then 
express  themselves  through  music;  but  man  should  be  also 
careful  about  music,  which  in  turn  influences  him. 

As  to  the  usefulness  of  music,  we  may  divide  it  up  into 
four  categories.  First,  music  has  ethical  value.  The 
"  Record  of  ]^Iusic  "  says: 

Rites  and  music  should  not  for  a  moment  be  neglected  by  any- 
one. When  one  has  mastered  completely  the  principles  of 
music,  and  regulated  his  heart  and  mind  accordingly,  the 
natural,  honest,  loving,  and  sincere  heart  is  easily  developed, 
and  with  this  development  of  the  heart  comes  a  great  pleas- 
ure. ...  If  the  heart  be  for  a  moment  without  the  feeling 
of  harmony  and  pleasure,  meanness  and  dcceitfulness  enter 
it.2 

Second,  music  has  physical  value.  The  "  Record  of 
Music  "  says : 

From  the  manner  in  which  the  shields  and  axes  arc  held  and 
brandished,  and  from  the  movements  of  the  body  in  the  prac- 
tice with  them,  now  turned  up,  now  bent  down,  now  retiring, 
now  stretching  forward,  the  carriage  of  the  person  receives 

'  Li  i\i.  i'K    wii,  p    108.  -Ibid.,  p.    IJ5. 


222        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

gravity.  From  the  way  in  which  the  pantomimes  move  to 
their  several  places,  and  adapt  themselves  to  the  several  parts 
of  the  performance,  the  arrangement  of  their  ranks  is  made 
correct,  and  their  order  in  advancing  and  retiring  is  secured.^ 

In  fact,  in  this  way,  music  is  something  like  a  gymnasium, 
a  theater,  or  a  dancing  school.  It  gives  physical  training 
to  the  body. 

Third,  music  has  social  and  political  value.    The  "  Record 
of  Music  "  says  : 

When  rulers  and  ministers,  high  and  low,  listen  together  to 
the  music  in  the  ancestral  temple,  all  is  harmonious  and  rever- 
ent. When  old  and  young  together  listen  to  it  at  the  clan, 
village  and  district,  all  is  harmonious  and  deferential.  When 
the  fathers  and  sons,  brothers  and  cousins,  together  listen  to 
it  within  the  gate  of  the  family,  all  is  harmonious  and  affec- 
tionate. ...  In  this  way,  fathers  and  sons,  rulers  and  sub- 
jects, are  united  in  harmony,  and  the  people  of  the  myriad 
states  are  associated  in  love.^ 

Fourth,  music  has  economic  value.     The   ''  Record   of 
Music  "  says: 

Music  is  an  object  of  pleasure.  The  superior  man  finds  his 
pleasure  in  it  because  it  satisfies  his  principles,  and  the  com- 
mon man  finds  his  pleasure  in  it  because  it  satisfies  his  wants. 
.  .  .  When  one  enjoys  alone  the  pleasure  of  music  in  his  mind, 
he  will  not  tire  of  his  principles.  When  he  keeps  his  prin- 
ciples fully,  he  will  not  satisfy  his  wants  in  a  selfish  way.  .  .  . 
Hence  it  is  said,  "  Of  the  principles  of  political  economy, 
music  is  the  greatest  one."  ^ 

It   is  very   interesting,   this   fact  that  the  Record   regards 
music  as  the  greatest  principle  of  political   economy.     It 

'  Li  Ki,  bk.  xvii,  p.  128.  ^  Ibid.,  p.  128.  ^  Ihid.,  pp.  112-3. 


DIFFEREXT  WAYS  OF  GETTING  PLEASURE 


223 


gives  this  quotation  which  may  come  from  an  old  saying, 
from  Confucius  himself,  or  from  his  disciples.  However  it 
may  come,  it  is  certainly  a  principle  of  Confucius.  It  is  be- 
cause music  can  satisfy  the  economic  wants  without  danger 
to  the  ethical  principles.  This  is  the  characteristic  of  Con- 
fucius' economy. 

The  component  parts  of  music  are  four,  namely,  musi- 
cal instruments,  poetry,  singing  and  the  dance.  The  "  Re- 
cord of  Music"  says:  ''Poetry  gives  expression  to  the 
thought;  singing  prolongs  the  notes  of  the  voice;  dance  puts 
the  body  into  action  in  harmony  with  the  sentiments.  These 
three  things  originate  in  the  mind,  and  the  musical  instru- 
ments accompany  them."  ^ 

Let  us  consider  only  singing  and  the  dance.  As  to  the 
beauty  of  singing,  the  ''  Record  of  Music  "  gives  the  fol- 
lowing description : 

In  singing,  the  high  notes  rise  as  if  they  were  borne  aloft;  the 
low  descend  as  if  they  were  falling  to  the  ground;  the  turns 
resemble  a  thing  bending  itself  and  then  turning  around;  the 
stops  resemble  a  dead  tree  without  motion ;  emphatic  notes 
seem  to  be  made  by  the  square,  quavers  are  like  the  hook  of 
a  spear ;  and  those  prolonged  on  the  same  key  are  like  pearls 
strung  togther.' 

From  this  description,  we  may  get  some  idea  about  the  sing- 
ing of  Confucius'  time. 

The  dance  of  the  ancient  Chinese  was  something  like  a 
play.  There  were  two  kinds  of  dance;  civil  and  military 
In  a  civil  dance,  the  plumes  and  ox-tails  were  waved,  and  in 
a  military  one,  the  shields  and  axes  were  brandished.  Their 
general  style  is  indicated  by  the  **  Record  of  Music  "  as 
follows : 

'  Li  Ki.  bk.  xvii,  p.   112.  ^  Ibid.,  pp    130-1. 


224        ^^^  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

At  first,  there  are  three  strokes  on  the  drum  to  warn  the  per- 
formers to  be  in  readiness,  and  then  there  are  three  steps  to 
show  the  gradual  start  of  the  dance.  On  the  second  beginning, 
the  dance  really  takes  its  place,  and  it  is  going  on.  At  the 
end,  they  return  to  their  position  in  good  order. ^ 

It  is  said  that  the  wheelings  and  revolutions  of  the  dance 
are  like  the  wind  and  rain. 

The  ancient  dance  was  the  origin  of  the  Chinese  drama. 
Let  us  take  the  military  dance  for  our  example,  as  we  can- 
not get  the  civil  one.     Confucius  said : 

Regarding  the  music  of  Wu,  in  the  first  scene,  the  pantomimes 
proceed  towards  the  north  to  imitate  the  marching  of  Wu 
Wang  against  Shang,  [or  the  Yin  dynasty].  In  the  second 
scene,  they  show  the  extinction  of  Shang.  In  the  third  scene, 
they  exhibit  the  victorious  return  to  the  south.  In  the  fourth 
scene,  they  play  the  annexation  of  the  southern  states.  In 
the  fifth  scene,  they  manifest  the  division  of  labor  of  the  dukes 
of  Chou  and  Shao,  one  on  the  left  and  the  other  on  the  right, 
in  charge  of  the  empire.  In  the  sixth  scene,  they  return  to 
the  point  of  starting  to  show  that  the  work  of  the  emperor 
is  complete  and  that  the  whole  empire  recognizes  him  as  the 
supreme  ruler.^ 

These  are  the  outlines  of  the  music  of  Wu.  Because  it  was 
a  military  dance,  Confucius  said,  "  It  is  perfectly  beautiful, 
but  not  perfectly  good."  ^ 

In  ancient  times,  singing  and  the  dance  were  taken  by 
different  persons  and  at  different  places.  The  singers  were 
on  the  higher  stage,  and  the  dancers  below  it.  But  they 
worked  together  in  harmony,  and  all  the  characteristics  of 
the  play  were  made  intelligible.  In  modern  times,  the 
actors  are  both  singing  and  acting  at  the  same  time,  in  har- 
mony with  music. 

^  Li  Ki,  bk.  xvii,  p.   113.  ^  Ibid.,  pp.  122-3. 

^  Classics,  vol.  i,  p.  165. 


DIFFERENT  WAYS  OF  GETTING  PLEASURE         225 

We  must  understand  that,  according  to  Confucius,  women 
should  not  take  part  in  the  dance  at  all.  It  was  only  in  the 
vulgar  music  that  women  came  on  the  stage.  Ssu-ma 
Chien  tells  us  that  the  tunes  of  Cheng  arose  from  the  feudal 
princes  who  competed  with  each  other  for  fame  and  honor 
in  such  things.^  This  kind  of  music  was  composed  either 
only  of  girls  or  of  a  mixture  of  both  boys  and  girls.^  But 
Confucius  condemned  it.  Under  his  influence,  China  had 
no  actresses  in  the  theater.  Very  recently,  however,  Shang- 
hai has  plays  performed  entirely  by  girls,  and  Tientsin  has 
plays  performed  by  both  sexes  together.  This  is  merely  the 
beginning  of  the  foreign  influence. 

Confucius  generally  does  not  approve  of  the  social  mix- 
ture of  the  two  sexes;  hence  he  does  not  approve  of  the 
dance  between  them.  The  ancient  Chinese,  however,  had 
such  a  custom  as  the  European  or  American  dance,  par- 
ticipated in  by  both  boys  and  girls.  In  the  Canon  of  Poetry, 
there  is  a  poem  indicating  that  in  the  morning  the  son  of 
Tzu-chung  and  the  daughter  of  Yiian  danced  at  the  market- 
place.^ This  is  the  only  example  we  can  find ;  it  means  that 
such  a  dance  was  a  local  custom  only.  Confucius  puts  this 
poem  in  this  Canon  only  to  condemn  such  a  dance.  Under 
his  influence,  China  never  has  the  social  dance  between  men 
and  women. 

Confucius  says :  "  For  changing  the  influence  of  the  peo- 
ple and  altering  their  customs,  there  is  nothing  better  than 
music."  *  Hence,  his  principle  is  to  develop  the  taste  for 
music  among  the  people.  To  attack  the  principle  of  Con- 
fucius  and  establish  his  own.   Mo  Tzii  has  written  three 

'  Historical  Record,  ch.  .xxiv. 
>Li  Ki,  bk.  xvii,  p.  ii7- 

•  Classics,  vol.  iv,  pt.  i,  p.  206. 

*  Sacred  Books,  vol.  'ii,  p.  482. 


226        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

books  entitled  ''  Condemnation  of  Music ".  His  theory 
is  based  entirely  upon  the  economic  argument;  for  the 
l^layer  of  music  and  the  listener  are  wasting  their  time 
and  checking  their  production  of  wealth.  This  is  a  very 
good  example  to  illustrate  the  difference  between  Con- 
fucius and  Mo  Tzu,  the  one  an  advocate  of  music,  and  the 
other  against  it.  Both  defend  their  views  with  economic 
reasons.  /\s  Confucius  looks  at  it  from  the  point  of  view 
of  consumption,  he  thinks  music  necessary.  Mo  Tzu 
looks  at  it  only  from  the  point  of  view  of  production,  ignor- 
ing the  principles  of  consumption  entirely,  so  he  thinks 
music  a  waste.     This  is  the  weakest  point  of  Mo  Tzu. 

Since  Confucius  lays  so  much  importance  on  music,  why 
is  the  Chinese  music  so  poor?  To  explain  briefly,  it  is  the 
fault  of  the  Chinese  scholars.  In  the  Han  dynasty,  the 
Canon  of  Music  of  Confucius  had  been  lost.  Hence  the  tunes 
of  the  ya  and  the  sung  were  unknown.  Moreover,  the 
pitch-tubes  were  also  lost,  so  that  the  musical  instruments 
of  the  classical  music  were  also  unknown.  Whatever  had 
remained  was  called  vulgar  music.  The  scholars  found 
it  impossible  to  trace  back  to  the  notes  of  Confucius;  but 
they  did  not  pay  attention  to  the  so-called  vulgar  music,  and 
left  it  to  the  poor  musician  whose  only  object  was  money- 
making.  They  were  much  too  conservative,  and  did  not 
know  the  evolution  and  progress  of  music.  Or  it  is  better 
to  say  that  they  were  influenced  by  Confucius  too  much  on 
the  ethical  side,  and  forgot  his  most  important  principle, 
that  music  is  an  object  of  pleasure.  Therefore,  on  the  one 
hand,  they  tried  to  reproduce  the  old  instruments,  but  did 
not  get  any  result.  On  the  other  hand,  they  regarded  the 
prevailing  music  as  the  tunes  of  Cheng,  and  would  have 
nothing  to  do  with  it.  Hence,  the  so-called  classical  music 
did  not  produce  any  pleasure,  and  the  so-called  vulgar  music 
has  necessarily  become  popular. 


DIFFEREXT  11' AYS  OF  GETTIXG  PLEASURE 


227 


Since  the  vulgar  music  did  not  secure  any  help  from  the 
scholars,  and  lost  their  moral  support,  too,  it  was  retarded 
in  its  development.  As  a  matter  of  fact,  although  the 
vulgar  music  cannot  be  classical,  it  is  by  no  means  entirely 
licentious.  If  the  scholars  would  accept  it  as  a  base  and 
then  reform  it,  China  would  have  a  natural  development 
of  music.  Unfortunately,  they  made  the  great  mistake  of 
not  dealing  with  the  popular  music,  and  it  became  a  great 
loss  to  China.  Indeed,  they  were  not  good  followers  of 
Confucius.  Confucius  says:  "  '  It  is  music  ',  they  say;  '  it 
is  music  ',  they  say.  Are  bells  and  drums  all  that  is  meant 
by  music?"  ^  According  to  the  principle  of  Confucius,  the 
essentials  of  music  are  harmony  and  pleasure.  If  any  music 
can  produce  these  essentials  without  excess,  it  is  good  music. 
But  most  of  the  old  scholars  did  not  understand  this  prin- 
ciple.   Even  the  few  who  did  understand  it  had  no  influence. 

II.    DISTRICT-DRINKING 

The  second  way  of  getting  pleasure  is  the  rite  of  district- 
drinking.  It  is  one  of  the  eight  rites  of  Confucius.  There 
are  four  occasions  on  which  this  rite  is  performed.  First, 
when  the  best  students  are  elected  and  sent  to  the  ruler : 
second,  when  the  ministers  and  great  officials  give  enter- 
tainment to  the  best  men  of  that  state;  third,  when  the  head 
of  the  county  collects  the  people  to  practice  archery;  fourth, 
when  the  president  of  the  town  observes  the  Clia  sacrifice : 
— all  these  occasions  have  the  rite  of  district-drinking.  But 
we  shall  discuss  the  fourth  only,  as  it  is  the  most  democratic 
one. 

Before  we  go  into  the  rites  of  drinking,  we  must  explain 
what  the  Clia  means.  The  word  Cha  expresses  the  idea  of 
.searching  out.     In   the   twelfth   month   of   the  year,   they 

•  Classics,  vol.  i,  p.  324. 


228        THE  ECONOMIC  PRINCIPEES  OF  CONFUCIUS 

brought  together  some  of  all  the  products  of  the  harvest, 
and  sought  out  the  authors  of  them  to  present  these  pro- 
ducts to  them  as  offerings.  There  were  eight  objects  to 
which  the  sacrifices  were  offered; — namely,  the  Father  of 
Husbandry,  the  Oldest  Minister  of  Agriculture,  the  dis- 
coverers of  the  various  grains,  the  ancient  overseers  of  hus- 
bandmen, the  spirit  of  the  buildings  marking  out  the  boun- 
daries of  the  fields,  the  spirits  of  cats  and  tigers,  the  spirit 
of  dykes,  and  the  spirit  of  water-channels.  These  sacri- 
fices were  expressions  of  thanks.  The  principle  was  that 
when  anything  renders  you  service,  you  must  give  it  a  re- 
turn. As  the  cats  devoured  the  rats  and  mice  of  the  field, 
the  tiger  devoured  the  wild  boars,  and  the  dykes  and  water- 
channels  performed  their  business,  they  should  receive  re- 
turn. Such  a  custom  was  originated  in  legendary  times. 
In  fact,  it  is  a  festival  day  of  thanksgiving. 

After  these  eight  sacrifices,  they  proceeded  to  sacrifice  to 
their  ancestors  and  the  five  spirits  of  the  house.  They 
wore  yellow  robes  and  yellow  caps  for  the  performance  of 
sacrifice,  in  order  to  indicate  that  the  farmers  should  take 
a  rest.  The  yellow-caps  were  the  dress  of  the  country,  and 
they  were  the  signs  of  the  farmers.  The  harvest  time  be- 
ing past,  the  people  had  nothing  to  do  but  to  rest.  There- 
fore, after  the  Cha^  the  ruler  did  not  commence  any  public 
work  for  the  employment  of  the  people.^ 

On  such  an  occasion,  the  rite  of  district-drinking  takes 
place.  There  must  be  a  great  gathering  of  the  people  in 
the  school  house,  and  the  president  of  the  town  is  the  host. 
Many  details  are  given  in  the  Canon  of  Rites,  but  we  shall 
omit  them,  picking  out  three  following  passages  from  the 
"  Principles  of  District-Drinking." 

First,  this  rite  has  an  ethical  significance.  The  "  Prin- 
ciples of  District-Drinking  "  says : 

^  Li  Ki,  bk.  ix,  pp.  431-434. 


DIFFERENT  WAYS  OF  GETTING  PLEASURE 


229 


The  host  bows  to  the  coming  guest  as  he  receives  him  outside 
the  door  of  the  school.  They  enter  and  three  salute  one  an- 
other, till  they  come  to  the  steps.  There  each  three  yields 
the  precedence  to  the  other,  and  then  they  a«^cend.  In  this 
way  they  carry  to  the  utmost  their  mutual  demonstrations  of 
honor  and  humility.  The  host  washes  his  hands,  rinses  the 
cup,  and  raises  it, — to  give  the  highest  idea  of  purity.  The 
host  bows  when  the  guest  arrives  in  the  hall ;  the  guest  bows' 
when  the  host  washes  the  cup,  and  bows  again  when  the  cup  is 
received ;  the  host  bows  after  the  cup  has  been  sent  away ;  and 
the  guest  bows  when  the  drinking  is  over, — in  this  way  carry- 
ing to  the  utmost  their  mutual  respect.^ 

Honor,  humility,  purity  and  respect  are  the  manners  of 
social  intercourse.  They  will  keep  men  away  from  quarrels 
and  disputations,  and  prevent  the  evils  of  violence  and  dis- 
order. 

Second,  it  has  a  social  significance.     The  "  Principles  of 
District-Drinking"  says: 

Those  who  are  sixty  years  old  sit  down,  and  those  who  are 
only  fifty  stand  up  and  wait  for  any  order  of  service; — thus 
illustrating  the  honor  which  is  paid  to  elders.  Before  those 
who  are  sixty,  three  additional  dishes  are  placed;  before  those 
of  seventy,  four ;  before  those  of  eighty,  five ;  and  before 
those  of  ninety,  six : — thus  illustrating  how  the  aged  are  cher- 
ished and  nourished.  When  the  people  know  how  to  honor 
their  ciders  and  nourish  their  aged,  they  will  be  able  to  prac- 
tice filial  piety  and  fraternal  duty  in  their  own  homes.  Filial 
and  fraternal  at  home,  and  honoring  the  elders  and  nourishing 
the  aged  outside  of  their  family,  the  religion  is  complete,  and 
this  leads  to  the  peace  and  tranquillity  of  the  state.* 

Third,  it  contains  an  economic  lesson.     The  "  Principles 
of  District-Drinking  "  says: 

^  Li  Ki,  bk.  xlii.  p.  435.  *  Ibid.,  pp.  439-440. 


230        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

When  the  guest  sips  some  of  the  Hquor  ...  at  the  end  of  the 
table,  it  means  that  the  middle  of  the  table  is  not  only  for  the 
purpose  of  eating  and  drinking,  but  also  for  the  performance 
of  rites.  It  shows  that  the  rites  are  made  valuable,  while 
wealth  is  made  of  little  account.  When  the  guest  drains  the 
liquor  of  the  cup  at  the  top  of  the  western  steps,  it  means  that 
the  table  is  not  merely  for  the  purpose  of  eating  and  drinking, 
and  shows  the  principle  that  rites  stand  at  the  first  place  and 
wealth  at  the  last.  When  rites  have  the  first  place  and  wealth 
the  last,  the  people  become  respectful  and  yielding,  and  are 
not  contentious  with  one  another.^ 

From  this  point  of  view,  the  district-drinking  combines 
economic  and  ethical  elements  into  one  principle. 

The  *'  Miscellaneous  Records,"  however,  tells  that  this 
drinking  harmonizes  with  a  purely  economic  principle,  that 
is,  the  balance  between  working  and  enjoying.  Tzu-kung, 
having  gone  to  see  the  festival  of  Cha,  found  all  the  people 
drunk.  Confucius  asked  him,  ''  T'zu,  does  it  give  you  pleas- 
ure?" The  answer  was,  ''The  people  of  the  whole  state 
appear  to  be  mad ;  I  do  not  know  in  what  I  could  find  pleas- 
ure."    Confucius  said: 

For  their  hundred  days'  labor  in  the  field,  the  husbandmen 
receive  this  one  day's  enjoyment  from  the  state; — this  is  what 
you  do  not  understand.  Even  Wen  and  Wu  could  not  keep  a 
bow  in  good  condition,  if  it  were  always  drawn  and  never  re- 
laxed; nor  did  they  leave  it  always  relaxed  and  never  drawn. 
To  keep  it  now  strung  and  now  unstrung  is  the  principle  of 
Wen  and  Wu.^ 

This  dialogue  shows  the  difference  between  Confucius  and 
his  pupil.  Tzu-kung  was  too  strict  and  thought  that  the 
people  should  not  have  the  pleasure  of  drinking.  Con- 
fucius was  sympathetic  with  the  laborers,  and  thought  that 

^  Li  Ki,  bk.  xlii,  p.  439.  2  jfy^d^  ]j\^    xviii,  p.   167. 


DIFFERENT  WAYS  OF  GETTING  PLEASURE 


231 


the  festival  day  was  necessary  for  them.  '*  Now  strung  and 
now  unstrung "  is  a  good  rule  for  keeping  the  physical 
strength  of  the  people  in  good  condition,  and  it  suggests 
the  principle  of  labor  legislation. 

Confucius  says :  ''  When  T  observe  the  district-drinking, 
I  know  that  the  principles  of  a  royal  government  are  very 
easy  to  carry  out."  There  is  a  distinction  between  the 
honorable  guest  and  the  common  guests:  this  exhibits  the 
principle  of  social  order  between  the  noble  and  the  mean. 
There  is  a  difference  in  the  number  of  ceremonies  paid  to 
the  different  guests :  this  illustrates  the  proper  degree  of 
using  ceremonies.  After  the  formal  music  is  finished,  a 
superintendent  is  appointed  to  look  over  the  ceremonies : 
this  means  that  they  get  harmony  and  pleasure  without  dis- 
order. They  pledge  one  another  according  to  age,  and  even 
the  keepers  of  the  vases  and  the  cup-washers  enjoy  the  same : 
this  is  a  practice  of  fraternity,  without  omitting  anyone. 
Finally,  taking  off  their  shoes  below  the  hall,  and  sitting  in 
the  hall  for  the  feast,  they  drink  as  much  as  they  can  stand, 
and  play  music  as  much  as  they  please:  but  the  ceremonies 
are  nevertheless  observed :  this  shows  that  they  are  able 
to  enjoy  the  feast  without  any  confusion.  These  five  quali- 
ties form  the  reason  why  Confucius  says  that  the  prin- 
ciples of  a  royal  government  are  very  easy  to  carry  out.^ 

This  rite  still  exists  to-day,  but  only  in  a  very  aristo- 
cratic form.  Its  essentials  are  found  in  the  country  life 
when  there  is  a  social  drinking:  but  it  does  not  use  its 
name,  and  has  no  so  much  ceremonies. 

III.    GAME  OF  ARCHERY 

The  third  way  of  getting  pleasure  is  by  the  game  of 
archery.  It  is  also  one  of  the  eight  rites  of  Confucius. 
Its  beginning  and  its  end  are  the  same  as  the  rite  of  district- 

'  Li  Ki,   bk.  .xlii.  pp.  440-442, 


232 


THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 


drinking,  and  the  game  takes  place  at  the  middle  part. 
After  the  formal  music  is  finished,  and  before  the  general 
pledging  begins,  there  is  the  game  of  archery.  We  shall 
describe  the  game  as  simply  as  possible  according  to  the 
Canon  of  Rites.  There  are  one  host,  one  guest,  and  the 
common  guests,  sometimes  with  great  officials.  The  game 
is  presided  over  by  the  master  of  archery  and  the  superin- 
tendent, and  has  many  curators.  Two  men  make  up  one 
pair ; — the  one  is  called  upper  archer,  standing  on  the  right ; 
and  the  other,  lower  archer,  standing  on  the  left.  The  dis- 
tance between  the  two  is  about  the  length  of  a  bow.  Each 
one  shoots  four  arrows ;  the  lower  archer  follows  the  upper 
archer  in  each  shooting,  and  the  arrow  of  the  winner  must 
pierce  the  target  which  is  made  of  cloth. 

The  game  is  divided  into  three  parts.  In  the  first  part, 
there  is  the  game  of  the  three  pairs  who  are  made  up  of 
young  students  for  the  practice  of  archery.  At  first,  the 
master  of  archery  himself  gives  an  example.  Then  he  di- 
rects the  three  pairs  in  the  game.  But  the  score  is  counted 
later. 

In  the  second  part,  there  is  the  game  of  all  the  members. 
At  first,  they  arrange  the  pairs ;  the  host  is  with  the  guest ; 
the  great  officials,  even  though  their  number  may  be  many, 
are  coupled  with  the  students;  and  the  common  guests  are 
coupled  with  one  another;  the  host  and  the  great  officials 
act  as  the  lower  archers.  After  taking  their  arrows  and 
coming  to  their  positions,  the  score  of  the  first  game  is 
counted.  Then  the  three  pairs  take  the  first  part  of  this 
second  game;  the  guest  and  host  follow  them;  the  great 
officials  come  in  third,  and  the  common  guests  at  the  end. 
The  score  is  counted  in  two  ways.  First,  all  the  pairs  are 
generally  divided  into  right  and  left,  the  upper  and  the 
lower  archers,  and  the  accountant  finds  which  set  wins  more 
than  the  other.     Then  he  reports  which  is  the  better  set; 


DIFFERENT  WAYS  OF  GETTING  PLEASURE 


233 


if  two  sides  are  equal,  he  says  that  the  left  and  right  are 
equal.  Secondly,  the  game  is  counted  according  to  each 
individual  in  each  pair.  The  master  of  archery  gives  an 
order  that  all  the  winners  should  show  their  left  arms,  their 
bowstring  thimbles  and  armlets,  and  should  hold  the  bows 
strung;  that  all  those  who  are  defeated  should  cover  their 
left  arms,  take  off  their  thimbles  and  armlets,  leave  their 
bows  unstrung  and  hold  the  strip  of  bamboo  by  both  hands. 
The  victorious  partner  ascends  to  the  hall  a  little  earlier 
than  the  defeated  partner ;  the  latter  drinks  a  cup  of  liquor 
as  a  fine,  and  then  comes  down  a  little  earlier  than  the 
former. 

In  the  third  part,  there  is  the  principal  game.  Every 
part  of  it  is  the  same  as  that  of  the  second  part;  the  only 
difference  is  the  using  of  music  for  the  regulation  of  the 
discharging  of  arrows.  The  same  notes  of  music  are  re- 
peated five  times  without  any  variation,  the  first  note  for 
the  preparation  of  the  archer,  and  the  others  for  the  dis- 
charging of  the  four  arrows.  If  any  arrow  is  not  in  har- 
mony with  the  music,  although  it  pierce  the  target,  it  is 
not  counted  as  a  point. 

After  the  game  is  all  over,  the  ceremonies  are  like  those 
of  district-drinking.  The  guest  first  pledges  the  host,  and 
then  comes  the  general  pledging.  Then  the  feast  takes 
place:  there  is  no  limit  as  to  the  number  of  cups  to  be  drunk, 
nor  to  the  amount  of  music  to  be  played.  When  the  guests 
are  about  to  go  out,  music  is  being  played,  and  the  host 
escorts  them  out  of  the  door  and  bows. 

The  game  of  archery  was  the  national  game  of  ancient 
China.  It  was  practiced  by  every  man,  from  the  emperor 
to  the  common  people.  When  a  boy  was  born,  a  bow  was 
placed  on  the  left  of  the  door;  and  when  he  was  only  three 
days  old,  he  began  to  be  carried  for  the  shooting  of  six 
arrows.'     This  showed  that  archery  was  a  necessary  pro- 

'  Li  Ki.  bk.  x.  pp.  471-2. 


234        ^^^  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

fession  for  any  boy.  Hence  it  is  one  of  the  six  arts  of 
Confucius.  If  a  man  was  unable  to  take  part  in  this  game, 
it  was  a  very  shameful  thing.  In  the  Canon  of  Rites, 
there  is  a  book  entitled  the  "  Ceremonies  of  Great  Archery," 
which  describes  the  game  participated  in  by  the  feudal 
princes  and  their  officials.  What  we  have  mentioned  above 
is  district-archery.  It  was  practiced  twice  a  year,  in  the 
spring  and  autumn ;  and  it  was  held  at  the  school-house  of 
a  county.  But  it  might  be  practiced  at  any  time.  If  it  was 
at  a  social  gathering,  it  was  called  social  archery.  District- 
archery  and  great  archery  were  quite  similar  to  each  other, 
with  only  a  little  modification.  For  our  purpose,  district- 
archery  should  be  given  because  it  was  much  more  popular 
than  the  other. 

There  is  a  description  of  an  archery  meeting  that  Con- 
fucius directed.  When  he  takes  part  in  the  game  in  a  vege- 
table garden  at  Kuo-hsiang,  the  lookers-on  surround  it  like 
a  wall.  He  appoints  Tzu-lu  as  the  master  of  archery,  and 
orders  him  to  go  out  with  his  bow  and  arrows  to  introduce 
those  who  wish  to  shoot  and  to  see.  Tzu-lu  says  to  the 
crowd :  "  The  general  of  a  defeated  army,  the  great  official 
of  a  fallen  state,  and  anyone  who  has  schemed  to  be  the 
successor  and  heir  of  another,  will  not  be  allowed  to  enter, 
but  the  rest  may  all  enter."  Owing  to  this,  one  half  goes 
away,  and  the  other  half  enters.^  From  this  description, 
we  know  that  the  game  of  archery  can  be  held  at  any  place, 
and  that  it  may  be  participated  in  by  any  stranger.  This 
is  true  of  both  district-archery  and  social  archery.  Indeed, 
it  was  the  most  favored  and  popular  game. 

The  game  of  archery  is  very  useful.  First,  it  has  edu- 
cational value,  and  this  value  may  be  divided  into  two  parts. 
In  the  first  place,  it  is  a  moral  education.  The  "  Prin- 
ciples of  Archery  "  says : 

^  Li  Ki,  bk.  xliii,  pp.  449-450. 


DIFFERENT  WAYS  OF  GETTISG  PLEASURE 


235 


The  archers,  in  advancing,  retiring,  and  in  all  their  move- 
ments, are  required  to  observe  the  rules.  Internally,  the  mind 
is  correct ;  and  externally  the  carriage  of  the  body  is  straight ; 
then  they  hold  their  lx>vvs  and  arrows  skilfully  and  firmly. 
When  they  do  so,  they  may  be  expected  to  hit  the  mark.  In 
this  way,  their  moral  characters  can  be  seen  from  their  archery.^ 

Confucius  says :  "  In  archery  we  have  something  like  the 
way  of  the  superior  man.  When  the  archer  misses  the 
center  of  the  target,  he  turns  around  and  seeks  for  the 
cause  of  his  failure  in  himself.""  He  says  again:  "To 
shoot  exactly  in  harmony  with  the  note  given  by  the  music, 
and  to  shoot  without  missing  the  center  of  the  target : — it 
is  only  the  archer  of  superior  virtue  who  can  do  this  I  How 
shall  a  man  of  inferior  character  be  able  to  hit  the  mark?"  ^ 
In  the  second  place,  it  is  a  military  education.  In  ancient 
times,  archery  was  the  chief  art  of  war:  hence  it  was  neces- 
sary for  the  national  defence,  .\rchery  was  a  great  cere- 
mony, and  required  men  of  great  vigor  and  strength  to  go 
through  with  it.     The  Record  of  Rites  says: 

[When  men  of  great  vigor  and  strength  are  about  to  engage 
in  archery],  though  the  liquor  is  clear  and  they  are  thirsty, 
they  do  not  venture  to  drink  it ;  though  the  stalks  of  flesh  are 
dry  and  ready  to  their  hand,  and  they  are  hungry,  they  do  not 
venture  to  eat  them;  at  the  close  of  the  day,  when  they  are 
tired,  they  continue  to  maintain  a  grave  and  correct  deport- 
ment. .  .  .  Therefore,  such  men,  bold  and  daring,  full  of 
vigor  and  strength,  when  the  empire  is  at  peace,  employ  their 
gifts  in  the  exercise  of  propriety  and  righteousness;  and,  when 
there  is  trouble  in  the  empire,  employ  them  in  the  battlefield 
and  in  the  gaining  of  victory.* 

'  Li  Ki,  bk.  xliii,  p.  446. 

*  Classics,  vol.  i.  p.  396. 

*  Li  Ki,  bk.  xliii,  p.  453. 

*  Ibid..  l)k.    xlv.   pp.   462-3. 


236        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

From  this  point  of  view,  this  part  of  the  educational  system 
of  Confucius  is  very  wonderful.  It  trains  the  body  as  well 
as  the  mind  and  the  character,  and  it  can  stand  in  time  of 
war  as  well  as  in  time  of  peace. 

Second,  it  has  a  political  value.  In  ancient  times,  the 
emperor  used  archery  as  an  additional  test  for  selecting- 
the  feudal  princes,  the  ministers,  the  great  officials,  and  the 
students.^  x\nd  the  princes,  ministers,  and  great  officials  all 
selected  the  students  for  their  employment  in  the  same  way. 
In  fact,  archery  was  one  kind  of  civil  examination  through- 
out the  whole  political  life,  and  one  qualification  for  election. 

Third,  it  has  social  value.  District-archery  includes  the 
rite  of  district-drinking,  hence  gets  all  its  benefits.  It  fixes 
the  relation  between  seniors  and  juniors  in  good  order,  and 
makes  society  harmonious. 

Fourth,  it  has  economic  value.  In  the  first  place,  it  gives 
immaterial  pleasure,  (a)  There  is  the  social  pleasure  in  the 
gathering  of  different  classes  and  different  ages  of  men. 
(b)  There  is  the  physical  pleasure  in  the  exercise  of  the 
whole  body  for  the  whole  day.  (c)  There  is  the  pleasure 
in  winning  the  game,  by  showing  personal  qualities.  In 
the  second  place,  it  gives  material  pleasure,  (a)  There  is 
the  pleasure  of  drinking,  both  before  and  after  the  archery, 
(b)  There  is  the  pleasure  of  listening  to  music,  before,  dur- 
ing, and  after  the  game,  (c)  There  is  the  great  pleasure 
of  the  feast. 

Similar  to  the  game  of  archery,  there  is  the  rite  of  pitch- 
pot.  It  takes  place  in  the  middle  of  a  feast  for  the  pleasure 
of  the  guests.  In  the  Record  of  Rites,  there  is  a  book  de- 
scribing the  game,^  but  we  shall  give  only  a  little  of  it. 
The  neck  of  the  pot  is  seven  inches  long;  its  belly,  five 
inches  long;  and  its  mouth   is  two  and  a  half  inches  in 

1  Li  Ki,  bk.  xliii,  p.  448.  ^  Ibid.,  bk.  xxxvii,  pp.  397-401. 


DIFFERENT  WAYS  OF  GETTING  PLEASURE 


237 


diameter.  It  is  filled  with  small  beans  to  prevent  the  arrows 
from  leaping  out.  Regarding  the  length  of  the  arrows,  if 
the  game  is  held  in  the  chamber,  it  is  two  cubits;  in  the 
hall,  two  cubits  and  eight  inches;  in  the  courtyard,  three 
cubits  and  six  inches.  The  size  of  the  arrows  is  one-seventh 
of  an  inch.  This  game  can  be  practiced  anywhere  accord- 
ing to  the  sunlight;  if  at  noon,  it  is  held  in  the  chamber; 
if  in  the  afternoon,  in  the  hall ;  if  in  the  evening,  in  the 
courtyard.  In  all  three  places,  the  distance  of  the  pot  from 
the  players  is  equivalent  to  the  length  of  two  and  a  half 
arrows ;  that  is,  in  the  chamber,  five  cubits ;  in  the  hall,  seven ; 
and  in  the  courtyard,  nine. 

The  partners  of  the  game  are  two ;  and  there  are  as  many 
sets  of  partners  as  there  are  players.  The  party  of  the 
guests  is  in  the  right,  and  that  of  the  host  in  the  left.  Each 
partner  throws  four  arrows  in  each  part  of  the  game.  Its 
rules  are:  when  the  arrow  goes  straight  in,  it  is  reckoned 
an  entry;  when  it  is  not  thrown  according  to  the  alternation, 
it  is  not  reckoned.  During  the  game,  the  pitching  is  in 
harmony  with  music.  After  the  result  of  the  game  is  an- 
nounced, the  cup-bearers  of  the  successful  side  give  drink 
to  the  unsuccessful  side  as  a  fine.  When  the  three  parts  of 
the  game  are  all  over,  the  superintendent  begs  to  set  up 
figures  of  horses  in  honor  of  the  victorious  party.  There 
are  three  horses,  one  for  each  part  of  the  game.  If  the 
side  wins  only  one  part  of  it,  it  should  give  up  its  one  horse 
to  the  stronger  side  to  unite  the  three  horses  for  the  cele- 
bration of  victory.  Then  the  defeated  partner  personally 
offers  drink  to  the  winning  ])artner  for  congratulation. 
After  it  is  over,  the  horses  are  removed,  and  the  feast  is 
in  order,  with  unlimited  drinking. 

IV.    PUBLIC   PARK  AND  HUNTING 

Tilt'  fnnrtli  way  of  getting  pleasure  is  by  the  public  park 


238        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

system.  According  to  the  principle  of  the  Spring  and 
Autumn,  the  proportion  of  the  ground  of  the  public  park 
to  the  total  territory  is  one  to  ten.  Based  on  the  theory  of 
Confucius,  the  territory  of  the  imperial  state  is  a  thousand 
miles  square ;  that  of  the  states  of  a  duke  or  a  marquis,  one 
hundred  miles  square;  that  of  the  state  of  an  earl,  seventy 
miles  square;  that  of  the  states  of  viscount  or  baron,  fifty 
miles  square.  Therefore,  the  area  of  the  park  of  the  em- 
peror is  one  hundred  miles  square;  that  of  a  duke  or  a 
marquis,  ten;  that  of  an  earl,  seven;  that  of  a  viscount  or 
a  baron,  five.^  This  proportion  of  public  parks  is  quite 
sufficient  for  the  pleasure  both  of  the  rulers  and  of  the  people. 
When  Mencius  visits  King  Hui  of  Liang,  the  king  leads 
him  into  the  park,  and  stands  with  him  by  a  pond.  Look- 
ing round  at  the  geese  and  deer,  he  asks  Mencius,  "  Do  wise 
and  good  rulers  also  find  pleasure  in  these  things?"  Men- 
cius replies :  "  Being  wise  and  good,  they  may  have  pleasure 
in  these  things.  If  they  are  not  wise  and  good,  although 
they  have  these  things,  they  may  have  no  pleasure."  To  il- 
lustrate the  two  cases,  Mencius  first  quotes  the  words  from 
the  Canon  of  Poetry  which  tell  about  the  park  of  Wen 
Wang.     Part  of  the  quotation  is  as  follows : 

When  the  king  is  in  the  Good  Park, 
The  does  are  lying  down, 
The  does  are  so  sleek  and  fat, 
And  the  white  birds  shine  glistening. 
When  the  king  is  by  the  Good  Pond, 
How  full  is  it  of  fishes  leaping  about ! 

Mencius  remarks :  "  The  ancients  took  the  people  with  them 
for  participation  in  their  pleasure,  and  therefore  they  were 
enabled  to  have  pleasure."  Contrary  to  this,  Mencius 
points  out,  that,  if  the  people  wish  their  ruler  to  die,  al- 
though the  ruler  may  have  towers,  ponds,  birds,  and  animals, 

*  Eighteenth  year  of  Duke  Ch'eng. 


DIFFERENT  WAYS  OF  GETTING  PLEASURE 


239 


how  will  he  be  able  to  have  pleasure  alone?  ^  Taking  peo- 
ple for  the  participation  of  pleasure  is  the  fundamental  prin- 
ciple of  Confucianism,  and  it  determines  whether  or  no 
the  ruler  can  have  his  pleasure.  This  is  the  principle  of 
the  public  park  system. 

Wen  Wang  had  a  park  of  seventy  miles  square,  and  yet 
liis  people  looked  on  it  as  small ;  King  Hsiian  of  Ch'i  had  a 
park  only  of  forty  miles  square,  and  yet  his  people  looked 
on  it  as  large.  This  difference  is  explained  by  Mencius,  who 
says  that  the  park  of  Wen  W^ang  was  open  to  the  people, 
and  that  of  King  Hsiian  was  kept  for  his  own  interest. 
Mencius  describes  the  system  of  the  park  of  Wen  Wang 
as  follows :  The  grass-cutters  and  fuel-gatherers  have  the 
privilege  of  entrance  into  it,  and  so  also  have  the  catchers 
of  pheasants  and  hares.  Then  Mencius  says:  "  He  shared 
it  with  the  people,  and  was  it  not  with  reason  that  they 
looked  on  it  as  small?"  The  park  of  W^en  Wang  is  an  ex- 
ample of  the  public  park  system."  In  a  word,  a  park 
should  be  shared  with  the  people. 

Included  with  the  park  system,  is  the  system  of  hunting, 
and  this  is  also  a  source  of  pleasure.  The  public  park  is 
very  large,  outside  of  the  city,  and  it  has  forests  and  wild 
animals;  hence  it  can  be  used  as  a  hunting  ground.  Ac- 
cording to  the  Spring  and  .^ntiinin  ^  and  the  '*  Royal  Re- 
gulations," ■*  the  emperor  and  the  princes  have  three  hunt- 
ings in  every  year,  when  they  have  no  special  business  in 
hand.  The  three  huntings  are  in  sjM'iiig.  in  autumn,  and 
in  winter.  The  game  of  the  first  grade  furnishes  dried 
flesh  for  the  sacrificial  dishes;  that  of  the  second  grade  is 
for  the  entertainment  of  guests  and  visitors;  and  that  of 
the  third  grade  is  to  supply  the  kitchen  of  the  rulers.    These 

^Classics,  vol.  ii,  pp.  127-9.  ^  Ibid.,  pp.   153-4. 

'Fourth  year  of  Duke  Iluan.  *  Li  Ki,  bk.  iii,  p.  220. 


240 


THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 


are  not  for  the  purpose  of  acquiring  wealth,  but  serve  only 
as  regulations  of  the  hunt.  Besides  the  three  grades  of 
games,  a  hunting  can  also  kill  wild  animals  for  the  benefit 
of  the  farms,  and  it  can  practice  the  art  of  war.  These  are 
the  grounds  on  which  Confucius  approves  hunting. 

In  primitive  life,  hunting  is  production;  but  in  civilized 
life,  hunting  is  often  consumption,  because  it  gives  a  psychic 
pleasure,  greater  than  that  given  by  the  game  killed.  When 
Mencius  talks  about  pleasure  with  King  Hsiian  of  Ch'i,  he 
mentions  only  two  things, — music  and  hunting.  So  he  con- 
siders hunting  a  great  source  of  pleasure.  But,  when  a 
ruler  does  not  share  his  pleasure  with  the  people,  they  feel 
his  hunting  bad ;  and  when  he  shares  his  pleasure  with  them, 
they  feel  his  hunting  good.  The  conclusion  again  is  that  a 
ruler  must  share  his  pleasure  with  the  people.^ 

According  to  the  system  of  Confucius,  the  common  people 
have  hunting  as  well  as  the  emperor,  the  prince  and  the 
great  officials.  There  were  catchers  of  pheasants  and  hares 
in  the  park  of  Wen  Wang.  By  the  "  Royal  Regulations," 
the  hunting  of  the  common  people  is  held  during  the  winter. 
In  the  Canon  of  Poetry,  two  of  the  poems  of  Ch'i  tell  about 
the  hunting  of  the  common  people.^  In  fact,  the  people 
just  as  their  rulers,  ought  to  have  pleasure. 

Though  Confucius  allows  the  rulers  and  people  to  have 
their  pleasure  in  hunting,  he  does  not  allow  them  to  have 
excessive  pleasure.  The  second  and  the  eighth  of  the  poems 
of  Ch'i  just  referred  to  are  directed  against  the  inordinate 
love  of  hunting.  The  Canon  of  History  says :  ''  Wen  Wang 
did  not  dare  to  go  to  any  excess  in  his  excursions  or  his 
hunting."  ^     Mencius  quotes  the  words  from  An  Tzu  that 

^  Classics,  vol.  ii,  pp.  150-153. 

-  Ibid.,  vol.  iv,  pt.  i,  pp.  131-2,  158. 

^  Ibid.,  vol.  iii,  pt.  ii,  p.  469. 


DIFFERENT  WAYS  OF  GETTING  PLEASURE 


241 


pursuing  the  chase  without  satiety  is  called  being  wild/ 
Therefore,  Confucius  forbids  hunting  in  summer»time,  and 
gives  many  rules  in  the  ''  Royal  Regulations."  In  short, 
Confucius  prescribes  always  the  happy  medium;  he  ap- 
proves social  institutions  as  safety-valves  for  human  pas- 
sions, but  he  establishes  regulations  to  control  them.  This 
is  the  doctrine  of  the  golden  mean. 

^  Classics,  vol.  ii,  p.  t6o. 


CHAPTER  XV 
General  Standard  of  Expenditure 

I.    HAPPY  medium   between   PARSIMONY  AND  EX- 
TRAVAGANCE 

The  principles  of  Confucius  always  seek  the  golden  mean, 
and  this  is  especially  true  as  regards  consumption.  There 
is  only  one  proper  way,  neither  parsimony  nor  extravagance. 
Confucius  says : 

Kuan  Chung  had  carving  on  the  square  vessels  for  holding 
the  grain  of  his  offerings,  and  red  ornaments  for  his  cap ;  he 
set  up  a  screen  where  he  lodged  on  the  way,  and  had  a  stand 
of  earth  on  which  the  cups  he  had  used  in  giving  a  feast  were 
replaced ;  he  had  hills  carved  on  the  capitals  of  his  pillars,  and 
pondweed  on  the  lower  pillars  supporting  the  rafters.  He  was 
a  worthy  great  official,  but  made  it  difficult  for  his  superiors 
to  distinguish  themselves  from  him.  An  Ping-chung,  in  sac- 
rificing to  his  father  and  other  progenitors,  used  a  sucking- 
pig,  even  with  its  shoulders  not  large  enough  to  cover  the 
dish.  He  was  a  worthy  great  official,  but  made  it  difficult  for 
his  inferiors  to  distinguish  themselves  from  him.  A  superior 
man  will  not  encroach  on  the  observances  of  those  above  him, 
nor  put  difficulties  in  the  way  of  those  below  him.^ 

Kuan  Chung  is  the  representative  of  extravagance,  and  An 
Ping-chung  of  parsimony.     They  both  depart  from  the  rule 
of  moderation,  and  both  are  condemned  by  Confucius. 
Confucius  says :  ''  The  rites  should  be  most  carefully  con- 

^  Li  Ki,  bk.  xviii,  p.  165. 
242 


GENERAL  STANDARD  OF  EXPENDITURE 


243 


sidered.  Rites  are  different ;  they  are  the  standards  above 
which  it  is  too  much  and  below  which  it  is  too  Httle."  ^ 
Hence,  consumption  should  not  be  too  great;  if  so,  it  is  ex- 
travagant. Nor  should  it  be  too  little;  if  so,  it  is  parsi- 
monious.    Both  are  against  the  principle  of  rites. 

Confucius  gives  an  example  to  represent  the  proper  way 
of  spending.     He  says  : 

I  can  find  no  flaw  in  the  character  of  Yii.  He  himself  used 
coarse  food  and  drink,  but  displayed  the  utmost  filial  piety 
toward  the  spirits.  His  ordinary  garments  were  poor,  but  he 
displayed  the  utmost  elegance  in  his  sacrificial  cap  and  apron. 
He  lived  in  low,  mean  houses,  but  expended  all  his  strength 
on  ditches  and  water-channels.  I  can  find  nothing  like  a  flaw 
in  Yii.^ 

Food,  clothes,  shelter,  are  the  three  necessities  of  life.  Con- 
fucius takes  them  to  test  the  character  of  Yii,  and  their 
standard  is  low.  Yet  Confucius  applauds  it.  However, 
when  he  judges  Yii  from  the  viewpoint  of  social  expendi- 
ture, such  as  religious  sacrifices  and  public  works,  he  praises 
his  liberal  spending.  From  this  example,  we  see  that 
when  one  spends  money  for  his  individual  interest,  he 
should  be  frugal,  and  that  when  it  is  for  the  social  interest, 
he  should  be  liberal. 

II.    EVILS  OF   LUXURY  AND  EXTRAVAGANCE 

Speaking  generally  of  the  evils  of  luxury  and  extrava- 
gance. Confucius  sums  them  up  in  a  single  word — in- 
jurious. He  says:  "There  are  three  things  that  men  find 
enjoyment  in  which  are  injurious  ...  To  find  enjoyment 
in  extravagant  pleasure;  to  find  enjoyment  in  luxurious  ex- 
cursions; to  find  enjoyment  in  the  pleasure  of  disorderly 
feasting: — these  are  injurious."  * 

*  Cf.  Li  Ki,  bk.  viii,  p.  401. 

"  Classics,  vol.  i,  p.  215.  ^  Ibid.,  pp.  31 1-2. 


244        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

In  the  Canon  of  History,  there  is  a  book  entitled  ''Against 
Luxury."  It  thus  pictures  luxurious  people:  "When  the 
parents  have  diligently  labored  in  sowing  and  reaping,  their 
sons  often  do  not  understand  this  painful  toil,  and  abandon 
themselves  to  luxury  and  pleasure,  and  become  quite  dis- 
orderly, without  any  rule.  They  cast  contempt  on  their 
parents,  saying,  '  Those  old  people  have  heard  nothing  and 
know  nothing.'  "  Then  it  criticizes  the  emperors  of  the 
later  generations  of  the  Yin  dynasty,  and  says :  "  From 
their  birth  enjoying  luxury,  they  did  not  understand  the 
painful  toil  of  sowing  and  reaping,  nor  hear  of  the  hard 
labors  of  the  inferior  people.  They  only  sought  after  ex- 
cessive pleasures,  and  so  not  one  of  them  enjoyed  the  throne 
for  a  long  period."  It  gives  many  good  emperors  as  ex- 
amples, who  were  all  diligent  and  did  not  dare  to  indulge 
in  luxurious  ease.  The  most  conspicuous  example  is  Wen 
Wang.     It  says: 

Wen  Wang  dressed  meanly  and  gave  himself  to  the  work  of 
settlement  and  to  that  of  husbandry.  .  .  .  From  morning  to 
mid-day  and  from  mid-day  to  sundown,  he  did  not  allow  him- 
self time  to  eat;  thus  seeking  to  secure  the  universal  harmony 
of  the  myriads  of  the  people.  Wen  Wang  did  not  dare  to  go 
to  any  excess  in  his  excursions  or  his  hunting,  but  carefully 
devoted  his  attention  to  the  work  of  government  only. 

The  conclusion  is  that  all  the  succeeding  emperors  shall  not 
indulge  themselves  to  excess  in  drinking  and  in  the  luxury 
of  excursions  and  hunting. 

This  book  is  directed  against  luxury ;  but  it  does  not  go 
to  the  extreme,  and  allows  a  reasonable  luxury.  In  the  very 
beginning  of  the  book,  it  says :  "  The  officials  shall  not  live 
the  life  of  luxury.  But,  after  they  have  first  understood  the 
painful  toil  of  sowing  and  reaping,  they  may  then  be  al- 
lowed luxury;  and  thus  they  can  understand  the  suffering 


GENERAL  STANDARD  OF  EXPENDITURE 


245 


of  the  inferior  people."  ^  Wang  Chung  (578-648,  or  27-97 
A,  D. )  explains  this  principle  by  saying  that  the  muscle  and 
bones  of  a  man  are  not  like  wood  and  stone,  and  that  they 
cannot  get  along  without  some  reasonable  indulgence.  This 
is  the  principle  of  Confucius,  when  he  talks  about  the  drink- 
ing in  the  festival  of  Cha."^ 

The  evils  of  luxury  and  extravagance  are  frequently  con- 
demned in  the  Spring  and  Autumn.  The  chief  object  of 
condemnation  is  the  work  of  building,  because  it  is  expen- 
sive and  lays  the  heaviest  burden  upon  the  people.  For  in- 
stance, in  the  twenty-third  year  of  Duke  Chuang,  it  records 
that  the  pillars  of  Duke  Huan's  temple  were  painted  red. 
This  was  a  usurpation  of  the  right  of  the  emperor,  because 
the  legitimate  color  of  the  pillars  of  a  prince  is  black.  In 
the  following  year,  it  records  the  carving  of  the  rafters  of 
Duke  Huan's  temple.  This  is  worse  than  before,  because 
it  requires  more  labor  than  painting. 

The  reason  Confucius  always  takes  the  work  of  building 
to  illustrate  his  condemnations  of  extravagance  is  because 
it  hurt  the  people  to  a  great  extent,  besides  taking  much 
money.  In  ancient  times,  there  was  no  slavery,  and  all  con- 
structive works  were  done  by  forced  labor.  When  the 
princes  were  extravagant,  the  people  were  compelled  to  give 
painful  labor  in  order  to  satisfy  the  wants  of  the  princes. 
Or,  at  least,  the  people  must  have  paid  more  taxes.  Of 
course,  Confucius  does  not  want  to  sacrifice  the  labor  and 
money  of  the  people  for  the  personal  gratification  of  the 
princes.  This  is  the  reason  he  condemns  extravagance  in 
buildings.  However,  after  forced  labor  was  abolished,  the 
condition  of  the  people  was  quite  different.  But  the  Chinese 
did  not  understand  the  idea  of  Confucius  very  well,  and 
cking  to  the  old  custom  concerning  buildings,  because  they 

'  Classics,  vol.  iii.  pt.  ii.  pp.  464-470.  *  Cf.  supra,  p.  230. 


246        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

were  afraid  of  being  condemned  as  extravagant.  This  ex- 
plains why  the  Chinese  buildings  are,  in  general,  inferior. 

Besides  the  extravagance  of  building,  the  Spring  and 
Autumn  condemns  all  other  extravagance.  For  the  con- 
demnation of  extravagance  in  general,  the  Spring  and  Au- 
tumn records  the  fire  of  the  altar  of  Poh  in  the  fourth  year 
of  Duke  Ai.  The  altar  of  Poh  represented  the  ruined 
dynasty  of  Yin,  and  it  was  placed  outside  the  gate  leading 
to  the  ancestral  temple  in  all  the  feudal  states  to  serve  as  a 
warning  to  the  princes  to  guard  against  the  calamity  of 
losing  their  states.  According  to  the  Many  Dewdrops  of 
the  Spring  and  Autumn,^  Chou,  the  last  emperor  of  the  Yin 
dynasty,  is  the  strongest  example  of  extravagance.  His 
foods,  drinks,  clothes,  buildings,  parks,  animals,  different 
kinds  of  art,  colors,  forms,  music  and  women,  were  all  of 
the  most  luxurious  and  extravagant.  But  his  empire  was 
lost,  and  his  head  was  cut  off.  This  was  the  punishment  of 
extravagance.  Recording  the  fire  of  the  altar  of  Poh,  Con- 
fucius gives  a  warning  against  the  danger  of  luxury  and 
extravagance.  Since  it  can  ruin  even  an  emperor  and  an 
empire,  how  much  more  easily  will  it  ruin  an  ordinary  man 
or  an  ordinary  family? 

However,  Confucius  condemns  the  evils  of  luxury  and 
extravagance  on  social,  as  well  as  economic,  grounds.  In 
the  third  book  of  the  Analects,  there  are  many  chapters 
about  this  point.  Picking  out  the  most  conspicuous  chap- 
ters, we  may  classify  them  into  two  parts.  First,  we  may 
take  up  the  usurpation  of  the  class  of  great  officials.  In  the 
first  chapter,  Confucius  condemned  the  head  of  the  Chi 
family,  because  he  usurped  the  right  of  emperor  and  had 
eight  rows  of  pantomimes  in  his  area.  Confucius  said :  "  If 
this  be  allowed,  whatever  else  may  not  be  allowed?"     In 

1  Bk.  vi. 


GENERAL  STANDARD  OF  EXPENDITURE 


247 


the  sixth  chapter,  Confucius  condemned  him  again,  because 
he  usurped  the  right  of  princes  and  sacrificed  to  the  Tai 
Mountain.  In  the  second  chapter,  Confucius  censured  the 
three  famihes — the  Chi  family,  the  Chungsun,  and  the  Shu- 
sun — because  they  used  the  song  of  the  emperor  at  the  con- 
clusion of  sacrifice.  In  the  twenty-second  chapter,  Con- 
fucius censured  Kuan  Chung  on  the  ground  that  he  mar- 
ried three  girls  and  had  many  officers  performing  separate 
duties,  and  that  he  had  a  screen  at  his  gate  and  had  a  stand 
for  the  returning  of  cups.  Those  things  belong  to  the  class 
of  princes,  but  Kuan  Chung  usurped  them.  Second,  we 
may  take  up  the  usurpation  of  the  class  of  princes.  In  the 
tenth  chapter.  Confucius  condemned  the  prince  of  Lu  who 
performed  the  great  sacrifice  which  belongs  to  the  emperor 
only. 

In  all  cases,  Confucius  regards  this  from  the  social  point 
of  view.  But,  at  the  same  time,  it  is  an  economic  prin- 
ciple. Since  Confucius  regulates  consumption  according  to 
the  social  order,  if  any  class  usurps  the  right  of  a  higher 
one,  it  is  a  social  usurpation  on  the  one  hand,  but  it  is  also 
an  economic  extravagance  on  the  other.  Usurpation  and 
extravagance  are  the  same  thing,  and  the  difference  comes 
only  from  the  differing  view-points. 

I.  Principles  of  Simplicity  and  Moderation 

Preventing  the  tendency  to  luxury  and  extravagance 
there  is  the  principle  of  simplicity,  which  is  illustrated  in 
the  ceremonies  of  sacrifices.     The  Record  of  Rites  says: 

Admirable  as  are  the  spirits  and  sweet  spirits,  a  higher  value 
is  attached  to  the  dark  spirit  and  the  bright  water,' — in  order 
to  honor  that  which  is  the  source  of  the  five  flavors.  Beau- 
tiful as  is  the  elegant  embroidery  of  robes,  a  higher  value  is 

'  Dark  spirit  and  bright  water  both  are  simply  the  pure  spring  water. 


248        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

set  on  plain,  coarse  cloth, — going  back  to  the  commencement 
of  woman's  work.  Inviting  as  is  the  rest  afforded  by  the  mats 
of  fine  rushes  and  bamboos,  the  preference  is  given  to  the 
coarse  ones  of  reeds  and  straw, — distinguishing  the  sacrifice 
to  God.  The  ''  grand  soup  "  is  unseasoned, — in  honor  of  its 
simpHcity.  The  "  grand  symbols  of  jade  "  have  no  engraving 
on  them, — in  admiration  of  their  simple  plainness.  There  is 
the  beauty  of  the  red  varnish  and  carved  border  of  a  car- 
riage, but  a  plain  one  is  used  for  riding, — doing  honor  to  its 
plainness.^ 

All  these  things,  of  course,  are  for  some  religious  reason. 
But,  fundamentally,  there  is  an  economic  reason.  As 
pointed  out  by  Ssu-ma  Chien,  they  are  used  for  the  preven- 
tion of  luxury,  and  for  the  remedy  of  decay.^ 

In  the  Canon  of  Changes,  there  is  a  book  entitled  "  Dimi- 
nution ",  which  illustrates  the  principle  of  moderation.  It 
says :  "  If  there  be  sincerity  in  the  method  of  diminution, 
.  .  .  even  in  sacrifice,  only  two  baskets  of  grain  may  be 
presented.  But  these  two  baskets  ought  to  be  offered  at 
the  fitting  time.  .  .  .  Diminution  and  increase,  overflow- 
ing and  emptiness : — these  take  place  in  harmony  with  the 
conditions  of  the  time."  This  means  the  cutting  down  of 
expenditure  at  the  proper  time,  and  the  two  baskets  stand 
only  as  an  illustration.  Sincerity  is  worthier  than  material 
things ;  and  yet  material  things  should  not  be  diminished  at 
all  times.  This  is  the  principle  of  moderation,  and  it  is  not 
parsimony.  But,  how  can  we  be  moderate?  Bearing  on 
this  question,  this  Canon  suggests  the  term,  "  repressing 
wants  ".^  If  we  have  ethical  control  over  economic  wants,, 
we  shall  be  moderate  in  a  proper  way. 

^  Li  Ki,  bk.  ix,  pp.  435-6. 

'  Historical  Record,  ch.  xxiii. 

•  Yi  King,  pp.  246,  317. 


GENERAL  STANDARD  OF  EXPENDITURE  249 

III.   EVILS  OF  PARSIMONY 

Confucius'  system  is  an  advanced  civilization,  and  not  a 
primitive  doctrine.  Therefore,  in  his  theory  of  economics, 
he  does  not  put  too  much  emphasis  on  frugality.  On  the 
contrary,  he  sets  a  check  against  the  excess  of  frugality.  In 
the  Canon  of  Poetry,  he  gives  the  first  poem  of  the  nation 
of  Wei  for  the  condemnation  of  extreme  parsimony  in  the 
higher  class. ^ 

Once  again,  Confucius  sets  forth  the  first  two  poems  of 
the  nation  of  Tang  for  the  condemnation  of  extreme  parsi- 
mony. The  first  one  has  three  stanzas,  all  of  which  express 
practically  the  same  thing,  though  in  a  rising  scale.  The 
first  is  as  follows : 

The  cricket  is  in  the  hall, 

And  the  year  is  drawing  to  a  close. 

If  we  do  not  enjoy  ourselves  now, 

The  days  and  months  will  be  leaving  us. 

But  let  us  not  go  to  great  excess ; 

Let  us  first  think  of  the  duties  of  our  position. 

Let  us  not  be  wild  in  our  love  of  enjoyment. 

The  good  man  is  anxiously  thoughtful. 2 

The  second  one  also  has  three  stanzas,  one  of  which  we 
here  quote: 

On  the  mountains  are  the  thorny  elms. 

In  the  low  wet  grounds  are  the  white  elms. 

You  have  suits  of  robes, 

i->ut  you  will  not  wear  them ; 

You  have  carriages  and  horses. 

But  you  will  not  drive  them. 

You  will  drop  off  in  death, 

And  another  person   will  enjoy  them.* 

'  This  poem  is  given  supra^  p.    154. 
'  Classics,  vol.  iv,  pt.  i.  p.  174. 
'  Ibid.,  p.  176. 


250        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

All  these  poems  emphasize  the  same  principle,  and  are 
arranged  by  Confucius  in  a  most  conspicuous  place,  as 
representing  the  spirit  of  the  two  nations.  The  poem  of 
Wei  is  expressly  against  narrow-mindedness.  The  two 
poems  of  Tang  are  in  encouragement  of  the  enjoyment  of 
things.  When  the  first  of  these  two  considers  the  passing 
away  of  time,  it  looks  only  at  the  present  day;  but  when 
the  last  one  assumes  the  taking  away  of  ownership  by  an- 
other person,  it  shares  in  the  sadness  of  the  future.  The 
first  one  thinks  of  duty,  but  the  last  one  only  of  pleasure. 
Yet  Confucius  takes  them  all  for  the  indication  of  his  eco- 
nomic principle  against  niggardliness.  In  fact,  consump- 
tion is  the  end  of  economics,  and  production  is  only  its 
means;  if  man  does  not  consume  in  a  moderate  way  what 
he  produces,  he  will  destroy  the  object  of  production,  and 
there  can  be  no  economic  progress. 

Moreover,  if  extreme  parsimoniousness  is  the  general 
spirit  of  a  nation,  besides  these  economic  defects  there  will 
be  many  defects  of  an  ethical  and  social  nature.  When  the 
people  are  stingy,  their  minds  are  narrow,  their  natures 
cruel,  their  characters  mean;  their  ambition  amounts  to  noth- 
ing ;  their  lives  are  unhappy ;  they  have  no  generosity  in 
social  relations,  and  social  conditions  are  unpleasant. 

I.  Principles  of  Aesthetics 

Confucius  lays  much  emphasis  on  moral  duties,  and  yet 
he  does  not  entirely  leave  out  material  enjoyments.  He  has 
a  sense  of  beauty,  and  suggests  aesthetic  principles  for  con- 
sumption. Unfortunately,  since  the  Sung  dynasty,  the  Con- 
fucians pay  too  much  attention  to  internal  character,  and 
neglect  almost  entirely  external  well-being.  They  care  only 
for  the  mind  or  heart,  and  not  for  the  body ;  only  for  what 
is  good,  and  not  for  what  is  beautiful.  They  narrow  Con- 
fucianism into  a  sect  like  Puritanism.     Hence,  Chinese  ma- 


GENERAL  STANDARD  OF  EXPENDITURE 


251 


terial  development  has  been  retarded.  But  we  must  go  back 
to  Confucius  himself,  and  see  how  he  cared  for  the  aesthetic. 
For  this  purpose  we  may  distinguish  three  forms  of  con- 
sumption: (i)  food;  (2)  clothes,  and  (3)  dwellings. 

First,  let  us  consider  the  foods  which  were  consumed 
by  Confucius.     The  Analects  tells  us  : 

He  does  not  dislike  to  have  his  rice  finely  cleaned,  nor  to  have 
his  minced  meat  cut  quite  small.  He  does  not  eat  rice  which 
has  been  injured  by  heat  or  damp  and  turned  sour,  nor  fish  or 
flesh  which  has  been  spoiled.  He  does  not  eat  what  is  discolored, 
or  what  is  of  a  bad  flavor,  nor  anything  which  is  ill-cooked, 
or  is  not  in  season.  He  does  not  eat  meat  which  is  not  cut 
properly,  nor  that  which  is  served  without  its  proper  sauce. 
Though  there  might  be  a  large  quantity  of  meat,  he  does  not 
allow  what  he  takes  to  exceed  the  due  proportion  for  the  rice. 
It  is  only  in  wine  that  he  lays  down  no  limit  for  himself,  but 
he  does  not  allow  himself  to  be  confused  by  it  He  does  not 
partake  of  wine  and  dried  meat  brought  in  the  market.  He 
is  never  without  ginger  when  he  eats.  He  dees  not  eat  too 
much.^ 

From  this  description,  we  can  imagine  how  careful  Con- 
fucius was  about  the  consumption  of  his  food. 

In  the  Record  of  Rites,  there  is  a  book  entitled  the  ''Pat- 
tern of  the  Family  " ;  and  we  may  say  that  it  is  a  sort  of 
domestic  science,  or  economy  of  the  household.  It  gives 
many  details  about  the  foods  and  the  art  of  cooking.  We 
may  take  a  few  passages  from  it  as  examples: 

Of  grain  food,  there  arc  millet,  the  glutinous  rice,  rice,  maize, 
the  white  millet,  and  the  yellow  maize,  which  are  cut  when 
ripe,  or  when  green. 

Of  prepared  meats,  there  are  beef  soup,  nuitton  soup,  pork 

'  Classics,  vol.  i,  pp.  232-3. 


252        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

soup,  and  roast  beef;  pickle,  slices  of  beef,  pickle  and  minced 
beef;  roast  mutton,  slices  of  mutton,  pickle,  and  roast  pork; 
oickle,  slices  of  pork,  mustard  sauce,  and  minced  fish ;  pheas- 
ant, hare,  quail,  and  partridge. 

Of  drinks,  there  is  must  in  two  vessels,  one  strained,  the 
other  unstrained,  made  of  rice,  of  millet,  or  of  maize.  In 
some  cases,  either  the  gruel  is  fermented  for  one  night,  as 
the  must,  or  simply  as  millet  gruel.  There  are  four  more 
kinds  of  drink — soup  of  rice,  pure  water,  syrup  of  prunes, 
and  cold  broth  mixed  with  different  grains  and  fruits. 

Of  wines,  there  are  clear  wine  and  white  wines. 

Of  confections,  there  are  dried  cakes,  and  rice-flour  scones. 

For  relishes,  snail-juice  and  a  condiment  of  the  broad- 
leaved  water-squash  are  used  with  pheasant  soup ;  a  condiment 
of  wheat  with  soups  of  dried  slices  and  of  fowl ;  broken  glu- 
tinous rice  with  dog  soup  and  hare  soup ;  the  rice-balls  mixed 
with  these  soups  have  no  smart-weed  in  them.  A  sucking-pig 
is  stewed,  wrapped  up  in  sonchus  leaves  and  stuffed  with 
smart-weed ;  a  fowl,  with  the  same  stuffing,  and  along  with 
pickle  sauce;  a  fish,  with  the  same  stuffing  and  tgg  sauce;  a 
tortoise,  with  the  same  stuffing  and  pickle  sauce.  For  meat 
spiced  and  dried,  the  brine  of  ants  is  placed ;  for  soup  made  of 
sliced  meat,  that  of  hare;  for  a  ragout  of  elk,  that  of  fish;  for 
minced  fish,  mustard  sauce ;  for  raw  elk  flesh,  pickle  sauce ; 
/or  preserved  peaches  and  plums,  egg-like  suet.^ 

It  is  not  necessary  for  the  common  people  to  possess  all 
these  articles  of  food.  It  is  simply  that,  if  they  have  such 
things,  they  ought  to  use  them  according  to  these  rules. 
For  religious  worship,  social  entertainment,  and  the  nour- 
ishment of  parents,  these  are  domestic  arts  for  the  women 
to  learn.  There  are  many  rules,  but  we  shall  quote  only 
one  more : 

For  the  art  of  baking,  take  a   sucking-pig  or  a  young  ram. 

*  Li  Ki,  bk.  x,  pp.  459-60. 


GENERAL  STANDARD  OF  EXPENDITURE 


253 


Having  cut  it  open  and  removed  the  entrails,  fill  the  belly  with 
dates.  Wrap  it  round  with  straw  and  reeds,  which  are  plas- 
tered with  clay;  and  then  bake  it.  When  the  ciay  becomes  all 
dry,  break  it  off.  Having  washed  the  hands  for  the  manipula- 
tion, the  crackling  is  removed,  and  it  is  macerated  with  rice- 
flour,  so  as  to  form  a  kind  of  gruel  which  is  added  to  the  pig. 
Then  the  whole  is  fried  in  such  a  quantity  of  melted  fat  as 
to  cover  it.  In  the  middle  of  a  large  pan  of  hot  water,  place 
a  small  tripod,  which  is  filled  with  fragrant  herbs  and  the 
slices  of  the  creature  which  is  being  prepared.  Care  must  be 
taken  that  the  hot  water  does  not  cover  this  tripod,  and  that 
the  fire  has  no  intermission  for  three  days  and  nights. 
After  this,  the  whole  is  served  with  the  addition  of  pickled 
meat  and  vinegar.^ 

From  these  passages,  we  can  see  how  beautiful  and  in- 
tricate Chinese  cooking  was,  even  at  the  time  of  Confucius. 
It  is  no  wonder  that  Chinese  food  is  the  best  in  the  world. 

Second,  let  us  consider  the  clothes  of  Confucius.  The 
Analects  tells  us : 

The  superior  man  [Confucius]  does  not  use  a  deep  purple,  or 
a  puce  color,  in  the  ornaments  of  his  dress.  Even  in  his  negli- 
gee, he  does  not  wear  anything  of  a  red  or  reddish  color.  In 
warm  weather,  he  has  a  single  garment  of  either  coarse  or 
fine  texture,  but  he  wears  it  displayed  over  an  inner  garment. 
Over  lamb's  fur  lie  wears  a  garment  of  black ;  over  fawn's 
fur,  one  of  white;  and  over  fox's  fur,  one  of  yellow.  The 
fur  robe  of  his  negligee  is  long,  with  the  right  sleeve  short. 
He  requires  his  sleeping  dress  to  be  half  again  as  long  as  his 
trunk.  Staying  at  home,  he  uses  thick  furs  of  the  fox  or  the 
badger.  When  he  puts  ofT  mourning,  he  wears  all  the  ap- 
pendages of  the  girdle.  His  lower  garment,  except  when  it  i> 
required  to  be  of  the  curtain  shape,  is  made  of  silk  cut  narrow 
above  and  wide  below.     He  does  not  wear  lamb's   fur  or  a 

'  /./   Ki,  l)k.   X,  pp.  468-9. 


254       ^^^  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

black  cap,  on  a  visit  of  condolence.  On  the  first  day  of  a 
month,  he  puts  on  his  court  robes  and  presents  himself  at 
court.  When  fasting,  he  requires  his  underwear  to  be  brightly 
clean  and  made  of  linen  cloth.^ 

Here  we  get  some  idea  about  the  dress  of  Confucius.  It  is 
timely,  and  most  suitable  in  color,  style  and  combination. 

The  theory  of  dress  of  Confucius  is  to  make  the  clothes 
the  symbols  of  personality.     Hence  they  must  have  colors 
for  distinction,  and  the  colors  must  be  classified  according 
to  the  social  orders.     The  Canon  of  History  says :  ''  God 
graciously  appoints  the  virtuous ;— are  there  not  the  five 
habiliments,  and  the  five  decorations  belonging  to  them?  "  ^ 
According  to  Confucius'  theory,  all  the  officers  should  be 
virtuous,  and  should  be  awarded  decorations  according  to 
their  virtue.     Thus,  the  decorations  of  the  emperor  are  of 
yellow  fowl,  white  tigers,  red  flames,  and  green  dragons, 
all  upon  a  black  background.     Those  of  a  marquis  are  the 
same  as  those  of  the  emperor,  leaving  out  the  yellow  fowl. 
The  viscount  or  baron  has  only  the  white  tigers,  the  red 
flames,   and   the  green  dragons.      The   decorations   of  the 
great  officials  consist  of  only  the  red  flames  and  the  green 
dragons,  while  the  decoration  of  the  student  is  only  the 
green  dragons. 

According  to  the  Caiton  of  History,  the  dress  of  the  em- 
peror is  something  like  this :  All  his  upper  and  lower  gar- 
ments are  made  of  fine  embroidered  cloth.  They  all  have 
the  embroidery  of  (i)  the  drawing  lines,  (2)  the  grains 
of  rice,  (3)  the  combination  of  white  and  black,  and  (4) 
the  combination  of  black  and  green.  But,  while  the  lower 
garment  has  only  these  four  kinds  of  embroidery,  the  upper 
one  has  five  kinds  more,  namely,  as  mentioned  above,  the 

'  Classics,  vol.  i,  pp.  230-232.  »  Ibid.,  vol.  iii,  pt.  i,  p.  74. 


GENERAL  STANDARD  OF  EXPENDITURE  255 

green  dragons,  the  yellow  fowl,  the  white  tigers,  the  red 
flames,  and  the  black  color  of  the  garment  itself.  The 
Canon  of  History  says :  **  Take  the  five  colored  silk  threads, 
and  apply  them  brilliantly  to  the  five  colors  which  are  drawn 
for  the  base  of  embroidery,  in  order  to  make  clothes."  ^ 

One  sees  that  the  costume  of  Confucius'  system  is  by 
no  means  simple.  On  the  contrary,  it  is  intricate  and  very 
beautiful,  and  has  social  value.  It  is  the  mark  of  personal 
distinction,  hence  it  inspires  the  people  to  do  good  and 
guards  them  against  falling  into  disgrace.  It  is  used  as  a 
means  of  reward  and  punishment  of  society.  There  is  no 
plain  dress,  except  at  the  time  of  mourning,  during  a  bad 
year,  and  for  receiving  punishment.  For  example,  a  cap 
of  white  silk  with  edging  of  silk  rough  and  plain,  and  with 
strings  hanging  down  five  inches,  serves  to  mark  the  idle 
and  listless  student ;  a  dark-colored  cap  with  a  roll  of  white 
silk  marks  exclusion  from  society.^ 

In  civilized  society,  human  wants  go  beyond  the  bare 
necessities;  hence  clothes  are  required  not  only  for  warmth, 
but  also  for  display  and  beauty.  Confucius  is  not  like 
Buddha,  whose  system  of  dress  is  like  that  of  a  mourner. 
Nor  does  Confucius  resemble  Jesus,  under  whose  church 
the  dress  of  monk  and  nun  is  also  very  simple.  The  reli- 
gion of  Confucius  is  in  the  world,  and  does  not  seclude  itself ; 
this  is  the  explanation  of  the  whole  thing. 

Under  the  system  of  Confucius,  even  for  the  dress  of  a 
boy  under  twenty  years  old,  there  are  regulations.  The 
Record  of  Rites  tells  us :  "  His  upper  garment  is  of  black 
linen,  with  an  embroidered  edging.  His  sash  is  embroid- 
ered, and  also  the  strings  for  the  button-loops  of  his  girdle. 
With  such  a  string  he  binds  up  his  hair.      All  the  embroid- 

*  Cf.  Classics,  vol.  iii.  pt.  i,  p.  80. 
'  Li  Ki,  bk.  xi.  pp.  9-10. 


256       THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

ered  border  and  strings  are  red."  ^  This  is  for  his  decor- 
ation. But  he  should  not  wear  furs,  nor  should  he  wear 
jacket  or  trousers  of  silk,  because  both  are  too  warm  for 
children.^  For  the  convenience  of  doing  service,  he  should 
not  wear  the  lower  garment.^  And  because  he  has  not  come 
to  maturity,  he  should  not  wear  the  ornamental  points  on 
his  shoes.* 

There  are  many  details  about  dress  in  the  Record  of 
Rites,  but  we  shall  not  go  into  them.  The  only  other  thing 
we  care  to  mention  is  the  "  long  dress."  It  is  the  most 
simple  and  most  common  dress  of  the  Confucian  system. 
It  can  be  worn  on  all  occasions,  by  both  sexes,  and  by  all 
classes,  from  the  emperor  to  the  common  people.  It  is  next 
only  to  the  court  and  sacrificial  robes.  It  is  lasting  and 
not  expensive,  and  yet  it  has  an  ornamental  border.  Its 
details  are  given  in  a  small  book  entitled  the  "Long  Dress."  " 
In  fact,  Confucius  has  given  a  complete  system  about  the 
dress  of  the  head,  the  feet,  and  the  whole  body.  So  far 
as  their  dress  is  concerned,  the  Chinese  all  say  that  their 
costume  is  most  genteel  and  comfortable. 

Third,  let  us  consider  dwellings.  Unfortunately,  we 
cannot  find  any  description  of  the  house  of  Confucius.  The 
only  thing  we  know  is  that  the  present  temple  of  Con- 
fucius is  his  old  house,  which  was  also  occupied  by  his 
pupils.  As  his  house  was  at  the  same  time  a  school- 
building,  and  his  pupils  were  very  numerous,  such  a  house 
must  have  been  very  large.  His  school-house  has  been 
called  by  the  name  of  Apricot  Arena,  so  it  must  have  pre- 
sented a  very  beautiful  scene  with  the  apricot  flowers.  Its 
situation  was  good,  as  we  can  see  at  the  present  day. 

'  Li  Ki,  bk.  xi,  pp.  19-20.  ^  /^j^.^  p.  20. 

'  Ibid.,  bk.  X,  p.  478.  *  Ibid.,  bk.  xi,  p.  20. 

•''  Ibid.,  bk.   xxxvi,  pp.  395-6. 


GENERAL  STANDARD  OF  EXPENDITURE  257 

While  we  have  no  description  of  his  own  house,  we  still 
can  get  his  ideas  about  buildings  from  his  writings.  In  the 
Canon  of  Poetry,  there  is  a  poem  praising  Hsiian  Wang 
(276-231  B.  K.  or  827-782  B.  C),  who  built  a  new  palace 
according  to  the  principle  of  frugality.  Frugality  is  the 
essential  of  this  poem,  and  yet  it  gives  the  sense  of  beauty. 
We  shall  quote  a  few  lines  about  this  palace. 

Like  a  man  on  tip-toe,  in  reverent  expectation, 

Like  an  arrow,  flying  rapidly, 

Like  a  bird  which  has  changed  its  feathers, 

Like  a  pheasant  on  flying  wings, 

Is  the  hall  which  our  noble  lord  will  ascend. 

Level  and  smooth  is  the  court-yard, 

And  lofty  are  the  pillars  around  it. 

Pleasant  is  the  exposure  of  the  chamber  to  the  light, 

And  deep  and  wide  are  its  recesses. 

Here  will  our  noble  lord  repose.^ 

This  poem  about  the  palace  shows  in  the  first  stanza  how 
magnificent  and  conspicuous  is  the  hall,  and  in  the  second, 
how  grand  and  lovely  the  private  apartment. 

Scattered  throughout  the  Canon  of  Rites  is  the  description 
of  a  house  which  is  about  the  same  as  the  ancestral  temple. 
It  was  an  old  custom,  adopted  by  Confucius.  The  Chinese 
house  to-day  still  seems  somewhat  similar  to  this.  Such  a 
system  was  common  to  all  classes,  from  the  emperor  to  the 
student,  the  difference  being  only  in  size  and  details.  Let 
us  now  consider  the  house  of  the  student. 

Imagine  an  oblong  space  enclosed  by  four  brick  walls. 
In  the  front,  or  southern  wall,  (a  house  must  always  face 
the  south),  is  the  "external  entrance."  Some  distance  be- 
hind it  is  a  second  wall,  in  the  center  of  which  is  the  *'  main 
entrance."     Both  entrances  are  roofed  over,  with  oblong 

'  Classics,  vol.  iv,  pt.  ii,  p.  305. 


258 


THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 


buildings,  running  east  and  west,  on  each  side,  each  build- 
ing divided  into  two  lobbies,  one  within,  one  without,  the 
entrance.  The  house  proper,  about  square  in  outline,  is 
situated  well  toward  the  back  of  this  enclosed  space.  It 
consists  of  a  great  hall  and  behind  it  three  apartments. 

The  great  hall  stretches  clear  across  the  front  of  the 
house,  its  front  open,  having  two  pillars  instead  of  a  divid- 
ing wall,  one  at  the  east,  one  at  the  west.  This  great 
hall  is  approached  by  two  flights  of  steps,  one  toward  the 
east,  one  toward  the  west.  At  the  center  of  the  northern 
wall  of  the  hall,  between  a  door  on  the  east  leading  into  the 
apartment  behind  and  a  window  on  the  west,  is  the  honor- 
able place  for  guests.  The  east  and  west  ends  of  the  hall 
are  partitioned  off  into  long,  narrow  "  assistant  apartments." 

Behind  the  great  hall  is  the  "  principal  apartment,"  used 
as  a  business  office.  At  each  side  of  this  is  a  chamber. 
The  northern  half  of  the  "  eastern  chamber  "  is  called  the 
"  northern  hall."  It  has  an  open  front  in  the  north,  and 
it  is  for  the  exercising  of  ceremony  by  the  ladies.  The 
"  western  chamber  "  stores  the  valuable  things.  The  whole 
house  proper  is  covered  by  a  peaked  roof  made  of  tile, 
sloping  to  back  and  front. 

Behind  the  house  proper  are  the  "  private  apartment " 
for  eating  and  sleeping,  and  several  small  buildings  for  the 
children,  or  perhaps  for  a  son  and  his  family.  In  the  homes 
of  those  of  higher  rank,  this  third  and  back  part  may  be 
expanded  indefinitely. 

The  open  space  in  front  of  the  house  proper  is  the  court, 
which  is  usually  three  times  the  length  of  the  hall. 

The  house  of  the  common  people  is  similar  to  that  of  the 
student.  The  only  great  differences  are  that  it  has  only 
one  entrance,  without  lobbies  in  its  two  sides,  and  that  the 
court  is  only  as  long  as  the  hall.  It  has  not  the  "  private 
apartment ",  and  the  principal  apartment  is  used  for  eating, 


GENERAL  STANDARD  OF  EXPENDITURE 


259 


sleeping,  etc.  Besides  these,  there  is  1:0  great  difference 
in  the  house  proper.  In  fact,  according  to  the  economic 
principles  of  Confucius,  there  is  no  pauper;  and  even  the 
lowest  people  must  have  for  their  houses  plenty  of  sun- 
light and  good  air. 

The  most  beautiful  building  in  the  Confucian  system  is 
the  "  Brilliant  Hall."  The  Many  Dewdrops  of  the  Spring 
and  Autumn  says:  *'  The  Brilliant  Hall  is  round;  its  build- 
ing is  high,  imposing,  magnificent  and  round."  ^  Accord- 
ing to  Elder  Tai's  Record  of  Rites,  the  Brilliant  Hall  has 
nine  apartments  in  all.  Each  apartment  has  four  doors  and 
eight  windows;  in  the  whole  hall,  there  are  thirty-six  doors 
and  seventy-two  windows.  The  roof  is  covered  with  grass, 
to  symbolize  cleanliness.  The  upper  part  is  round,  the  lower 
part  square.  It  is  surrounded  by  a  round  body  of  water.^ 
This  is  the  most  important  building  for  all  great  exercises 
of  the  emperor:  to  worship  God  together  with  the  founder 
of  the  dynasty,  and  to  observe  many  other  important  cere- 
monies. 

IV.    CHOICE    BETWEEN    PARSIMONY    AND    EXTRAVAGANCE 

If  we  are  obliged  to  choose  either  extravagance  or  par- 
simony, however,  which  one  is  preferable?  When  Lin 
Fang  asks  Confucius  what  the  essential  of  rites  is,  Con- 
fucius replies:  "In  festive  rites,  it  is  better  to  be  sparing 
than  extravagant."  ^  This  statement  is  clear  enough  to 
show  his  opinion  in  favor  of  parsimony.  Again,  Confucius 
says:  **  Extravagance  leads  to  insubordination,  and  parsi- 
mony to  meanness.  It  is  better  to  be  mean  than  to  be  in- 
subordinate." *  Therefore,  we  are  sure  that,  if  one  can- 
not act  in  the  proper  way,  Confucius  would  prefer  parsi- 
mony rather  than  extravagance. 

'  Bk.  xxiii.  »  Bk.  Ixvi. 

*  Classics,  vol.  i,  p.  155.  *  Ibid.,  p.  207. 


26o       I^HE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 
V.    SOCIAL  STANDARD  OF  LIVING 

I.  General  Survey 

We  have  discussed  above  the  doctrine  of  rites,  and  have 
seen  how  the  standard  of  living  enters  into  the  Confucian 
system.  We  must  now  study  it  especially  and  definitely. 
In  every  age  and  every  place,  there  must  be  different  stand- 
ards among  different  classes,  and  this  holds  in  the  teachings 
of  Confucius.  Since  there  are  five  classes,  as  we  know, 
there  are  five  standards, — that  is,  those  of  the  emperor,  the 
princes,  the  great  officials,  the  students  and  the  common 
people.  But,  on  some  occasions,  the  standard  of  the  prince 
may  be  the  same  as  that  of  the  emperor,  that  of  the  great 
official  as  that  of  the  prince,  and  so  on  down. 

We  must  keep  in  mind  that  social  standards  have  a  great 
influence  upon  the  economic  life,  in  addition  to  marking  so- 
cial distinctions.  They  make  everyone  satisfy  his  wants 
according  to  the  standard  of  his  class.  They  help  to  make 
the  wealth  that  is  produced  suffice  for  the  needs  of  con- 
sumers. They  stimulate  everyone  to  do  his  best  in  produc- 
tion for  the  sake  of  raising  himself  to  a  higher  class. 
Therefore,  Confucius  prescribes  the  different  standards  for 
the  different  classes. 

Take  religious  expense,  for  example.  The  "  Royal  Regu- 
lations "  says : 

In  sacrificing  at  the  altars  to  the  spirits  of  the  land  and  grain, 
the  emperor  uses  in  each  case  a  bull,  a  ram  and  a  boar ;  the 
princes,  only  a  ram  and  a  boar.  The  great  officials  and  stu- 
dents, at  the  sacrifices  in  their  ancestral  temples,  if  they  have 
land,  observe  the  full  ceremonies  of  regular  sacrifice;  and,  if 
they  have  no  land,  they  simply  present  their  offering,  [that  is, 
the  great  official  offers  a  lamb,  and  the  student  a  sucking-pig]. 
The  common  people,  in  the  spring,  offer  scallions ;  in  summer, 
wheat;  in  autumn,  millet;  and  in  winter,  rice.     The  scallions 


GENERAL  STANDARD  OF  EXPENDITURE  26 1 

are  set  forth  with  eggs ;  the  whcit  with  fish ;  the  millet  with 
a  sucking-pig;  and  the  rice  with  a  goose.^ 

This  represents  the  standards  of  their  worship;  and  it  is 
somewhat  according  to  their  means. 

Let  us  take  their  foods  for  another  example.  When  there 
is  any  occasion,  the  emperor  and  prince  may  kill  an  ox; 
the  great  official,  a  sheep;  the  sttident,  a  dog  or  a  pig;  and 
the  common  people  may  eat  delicate  food.  But,  among  all 
of  them,  nobody  should  do  so  simply  to  satisfy  his  appetite 
and  without  any  other  reason.^ 

The  "  Pattern  of  the  Family  "  says: 

The  cupboards  of  the  emperor  are  five  in  the  assistant  apart- 
ment to  the  left,  and  another  five  in  that  to  the  right;  those  of 
dukes,  marquises,  and  earls  are  also  five,  but  all  in  one  cham- 
ber; those  of  great  officials  are  three  in  the  assistant  apart- 
ment; and  the  students  have  only  one  on  their  buffet.^ 

It  does  not  speak  about  the  number  of  cupboards  of  the 
common  people,  but  it  may  be  understood  that  it  is  equal 
to  that  of  the  students. 

The  ancient  Chinese  liked  to  have  a  large  area  for  a  house, 
rather  than  many  stories.  Hence  the  standard  of  a  house 
is  generally  measured  by  its  size  instead  of  its  height.  And 
yet  there  is  a  rule  to  regulate  the  height  of  a  house.  Such 
a  rule  is  illustrated  in  the  steps  of  a  hall.  According  to  the 
Record  of  Rites,  the  hall  of  the  emperor  has  nine  steps, 
each  of  one  cubit,  that  is,  it  is  nine  cubits  higher  than  the 
ground;  that  of  the  prince,  seven;  that  of  the  great  official, 
five;  and  that  of  the  student,  three.*     The  text  does  not  say 

'  Cf.  Li  Ki,  bk.  iii,  p.  226. 
'Ibid.,  p.  227.  and  bk.  xi,  p.  4. 
"  Ibid.,  bk.  X,  p.  464. 
*  Ibid.,  bk.  viii,  p.  400. 


262       THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

how  high  the  hall  of  common  people  should  be;  but,  judg- 
ing from  what  has  been  described  above,  and  drawing  au- 
thority from  Chia  Yi  and  modern  scholars,  the  hall  of  the 
common  people  must  have  one  step,  that  is,  be  one  cubit 
higher  than  the  ground.  Here  we  get  some  idea  about  the 
standard  for  their  dwelling. 

The  Chinese  have  a  peculiar  index  of  social  status ;  that  is, 
the  use  of  jade.  The  reason  the  Chinese  set  a  high  value  on 
jade  is  explained  by  Confucius.  His  full  explanation  is 
given  in  the  Record  of  Rites,^  but  it  can  be  summed  up  in 
one  line — jade  has  all  the  qualities  which  are  similar  to 
the  virtues  of  a  gentleman.     The  same  book  tells  us : 

All  the  girdles  must  have  the  pendant  of  jade,  except  during 
the  mourning  only.  At  the  end  of  the  middle  string  is  the 
tooth-like  piece,  colliding  with  the  others.  Without  some  sad 
cause,  a  gentleman  will  never  let  the  jade  leave  his  person; 
he  regards  the  pieces  of  jade  as  emblematic  of  the  virtues 
which  he  should  cultivate. 

The  pendant  of  the  emperor  is  composed  of  beads  of  white 
jade,  hung  on  dark-colored  strings;  that  of  a  duke  or  marquis, 
of  jade-beads  of  hill-azure,  on  vermilion  strings ;  that  of  a 
great  official,  of  beads  of  aqua-marine,  on  black  strings;  that 
of  an  heir-son,  of  beads  of  yu  jade,  on  variegated  strings; 
that  of  a  student,  of  beads  of  jade-like  quartz,  on  orange- 
colored  strings.  As  for  Confucius,  he  sometimes  wears  at  his 
pendant  an  ivory  ring,  five  inches  round,  on  variegated 
strings.^ 

These  are  the  different  standards  in  connection  with  the  use 
of  jade  for  pendants,  and  this  is  a  good  example  of  the  signi- 
ficance ascribed  to  ornaments. 

^  Li  ivi,  bk.  xlv,  pp.  463-4. 
'  Ibid.,  bk.  xi,  p.  19. 


GENERAL  STANDARD  OF  EXPENDITURE  263 

2.  Stayidard  of  the  Class  of  the  Great  Officials 
We  are  not  much  interested  in  the  standard  of  living 
of  the  emperor  and  princes,  but  we  are  interested  in  that  of 
the  great  officials,  because  they  are  of  the  middle  class.  In 
the  Record  of  Rites,  there  is  a  passage  telling  about  the 
daily  life  of  great  officials,  which  may  be  taken  as  a  descrip- 
tion of  the  higher  standard  of  living.     It  says: 

A  gentleman  washes  his  hands  five  times  a  day.  He  uses 
millet-water  in  washing  his  head,  and  maize-water  in  washing 
his  face.  For  his  hair,  when  wet  he  uses  a  ccmb  of  white- 
grained  wood,  and  an  ivory  comb  for  it  when  dry.  After  his 
toilet,  there  are  brought  to  him  the  usual  sup  of  wine  and  some 
delicacy ;  and  the  musicians  come  up  the  raised  hall  and  sing. 
In  bathing  he  uses  two  towels ;  a  fine  one  for  the  upper  part 
of  his  body,  and  a  coarser  one  for  the  lower  part.  When  he 
gets  out  of  the  tub,  he  steps  on  a  straw  mat ;  and  having 
washed  his  feet  again  with  hot  water,  he  steps  on  the  rush 
one.  Then  in  his  bathing  robe  of  cloth,  he  dries  his  body 
again,  and  puts  on  his  shoes;  and  a  drink  is  then  brought  to 
him.^ 

Confucius  once  belonged  to  the  class  of  great  officials, 
and.  when  he  lost  his  position,  he  belonged  to  the  class  of 
students.  But,  after  he  was  called  back  to  his  state,  he  re- 
ceived his  old  title  as  a  retired  official,  although  he  did  not 
take  the  actual  position.  Therefore,  he  kept  the  standard 
of  living  of  a  great  official.  When  Yen  Yiian  died,  Yiian's 
father  asked  Confucius  to  sell  his  carriage  in  order  to  get 
an  outer  shell  for  the  coffin  of  Yiian ;  but  Confucius  refused 
to  do  so.  He  referred  to  the  fact  that,  when  his  own  son 
died,  he  did  not  give  up  the  carriage  to  get  an  outer  shell 
for  him.  He  said :  ''  It  is  because  that,  having  belonged 
to  the  class  of  great  officials,  it  is  not  proper  for  me  to 

'  Li  Ki,  h\:.  xi,  p.  5. 


264 


THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 


walk  on  foot."  From  this  instance,  we  can  see  how  care- 
ful Confucius  was  to  maintain  his  standard  of  living.  Of 
course,  this  is  a  little  more  social  than  economic;  but 
it  is  a  very  good  example  of  the  attention  Confucius  paid 
to  the  standard  of  livingr. 


*&• 


3.  Standard  of  the  Class  of  Students 

In  the  "  Pattern  of  the  Family,"  there  are  many  details 
of  daily  life,  and  they  are  essentially  common  to  all  classes. 
We  may  select  some  details  in  order  to  represent  the  stand- 
ard of  the  class  of  students.  This  class  is  very  important, 
because  their  living  is  similar  to  that  of  common  people. 
Although  the  common  people  may  not  observe  those  rules 
as  fully  as  the  students,  the  rules  are  nevertheless  the  pat- 
tern of  the  people  to  whom  the  following  lessons  are  taught. 

When  the  sons  serve  their  parents,  on  the  first  crowing  of 
the  cock,  they  all  wash  their  faces  and  rinse  their  mouths, 
comb  their  hair,  draw  over  it  the  covering  of  siik,  fix  this  with 
the  hair-pin,  bind  the  hair  at  the  roots  with  the  fillet,  brush 
the  dust  from  the  hair-tufts  hanging  over  the  forehead,  and 
then  put  on  their  caps,  leaving  the  ends  of  the  strings  hang- 
ing down.  They  then  put  on  their  square  black  robes,  knee- 
covers,  and  girdles,  fixing  in  the  last  their  tablets.  From  the 
left  and  right  of  the  girdle  they  hang  their  articles  for  use : — 
on  the  left  side,  the  duster  made  of  a  handkerchief,  the  knife 
and  whetstone,  the  small  ivory  spike  for  the  opening  of  knots, 
.and  the  metal  speculum  for  getting  fire  from  the  sun;  on  the 
right,  the  archer*s  thimble  for  the  thumb,  and  the  armlet,  the 
tube  for  writing  instruments,  the  knife-case,  the  larger  spike, 
and  the  borer  for  getting  fire  from  wood.  Finally,  they  put 
on  their  leggings,  and  adjust  their  shoe-strings. 

This  description  seems  to  have  too  many  details,  but  it 
gives  a  very  good  picture  of  the  young  men  in  ancient 
times.     When   the  young  women  serve  their  parents  or 


GENERAL  STANDARD  OF  EXPENDITURE  265 

parents-in-law,  they  dress  like  these  young  men,  with  this 
difference:  they  wear  the  square  black  silk  robes,  also  with 
girdles;  leaving  out  such  articles  as  the  thimble  and  arm- 
let, the  tube  and  knife-case,  they  hang  the  needle-case,  thread 
and  floss,  all  bestowed  in  the  satchel ;  then  they  fasten  their 
necklaces  which  serve  as  bags  for  perfume. 

When  the  young  men  and  young  women  have  thus 
dressed,  they  go  to  their  parents  and  parents-in-law,  and 
care  for  them  in  every  way.  They  ask  whether  they  want 
anything,  and  then  respectfully  bring  it.  They  bring  to 
their  parents  gruel,  thick  or  thin,  spirit  or  must,  soup  of 
vegetables,  beans,  wheat,  spinach,  rice,  millet,  maize,  and 
glutinous  millet, — whatever  they  wish,  in  fact;  and  their 
parents  are  also  furnished  with  dates,  chestnuts,  sugar  and 
honey,  to  sweeten  their  dishes;  with  the  ordinary  or  the 
large-leaved  violets,  leaves  of  elm-trees,  fresh  or  dry,  and 
the  most  soothing  rice-water  to  lubricate  them ;  and  with  fat 
and  oil  to  enrich  them.  Waiting  till  the  parents  have 
tasted  them,  the  young  people  may  withdraw. 

As  to  the  younger  boys  and  girls,  they  do  not  take  the 
full  dress  of  young  men  and  young  women,  but  they  all 
use  necklaces  as  ornamental  bags  of  perfume.  At  day- 
break, they  begin  to  pay  their  respects  to  their  parents — 
later,  however,  than  their  older  brothers  and  sisters.  Their 
duty  is  to  do  the  small  services  for  their  parents. 

All  the  members  living  in  the  inner  and  outer  parts  of 
the  house,  at  the  first  crowing  of  the  cock,  should  wash 
their  faces  and  mouths,  put  on  their  dresses,  gather  up 
their  pillows  and  fine  mats,  sprinkle  and  sweep  out  the  apart- 
ments, hall,  and  courtyard,  and  spread  the  mats — each  doing 
his  proper  work.  After  sunrise,  each  attenrls  to  his  special 
business. 

Besides  the  old  parents  who  are  treated  especially  well, 
the  children  also  receive  favorable  treatment.      They  go 


266       THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

earlier  to  bed,  and  get  up  later.  Everything  is  ready  ac- 
cording to  what  they  want ;  there  is  no  fixed  time  for  their 
meals.  Whenever  the  parents  leave  something  after  their 
eating,  although  the  sons  and  their  wives  may  finish  the 
remainder,  the  sweet,  soft,  and  oily  things  are  specially  for 
the  children.^  This  example  is  given  to  illustrate  the  prin- 
ciple of  "  loving  the  young  ". 

4.  Standard  of  the  Common  People 
The  most  important  of  all  is  the  standard  of  living  of  the 
common  people.  Of  course,  the  living  of  the  common  peo- 
ple must  be  simple,  and  we  cannot  expect  to  have  many  de- 
tails about  it  in  the  Confucian  system.  Under  the  system 
of  tsing  tien,  however,  they  enjoy  a  very  good  living,  and 
their  standard  is  thus  summed  up  by  Mencius : 

Around  the  house  of  five  acres,  the  space  beneath  the  walls  is 
planted  with  mulberry  trees,  with  which  the  woman  nourishes 
silkworms,  and  thus  the  old  are  able  to  have  silk  to  wear. 
Each  family  has  five  brood  hens  and  two  brood  sows,  which 
are  kept  to  their  breeding  seasons,  and  thus  the  old  are  able 
to  have  flesh  to  eat.  The  husbandman  cultivates  his  farm 
of  one  hundred  acres,  and  thus  his  family  of  eight  mouths  are 
secured  against  hunger. 

According  to  Mencius,  the  people  of  fifty  years  old  cannot 
be  kept  warm  without  silk,  and  those  of  seventy  cannot  be 
satisfied  without  flesh.  If  they  are  not  kept  warm  by  silk, 
or  not  satisfied  by  flesh,  it  is  said  that  they  are  starved  and 
famished.^  Therefore,  the  silk  for  dress  and  flesh  for  food 
are  not  the  luxuries  of  the  old,  but  their  necessities.  From 
this  point  of  view,  we  may  say  that  the  standard  of  the 
common  people  is  by  no  means  low. 

^  Li  Ki,  bk.  X,  pp.  449-453- 
'  Classics,  vol.  ii,  pp.  461-2. 


GENERAL  STANDARD  OF  EXPENDITURE  267 

"  Nourishing  the  old  "  is  a  special  principle  of  Confucius, 
and  it  raises  the  standard  of  living.  According  to  the 
"Royal  Regulations,"  for  those  of  fifty,  the  grain  is  fine 
and  different  from  that  used  by  the  younger  people.  For 
those  of  sixty,  flesh  is  kept  in  store  waiting  for  their  order 
at  any  time.  For  those  of  seventy,  there  is  a  second  service 
of  savory  meat.  For  those  of  eighty,  there  is  a  constant 
supply  of  delicacies.  For  those  of  ninety,  food  and  drink 
are  never  out  of  their  chamber;  wherever  they  wander  to 
another  place,  it  is  required  that  savory  meat  and  drink 
should  accompany  them. ^  There  is  a  strict  rule  that 
the  old  of  the  common  people  should  not  eat  their  meal 
without  flesh."  Therefore,  the  standard  of  the  common 
people  is  kept  up  by  the  old,  and  it  can  never  be  lowered. 

According  to  the  tsing  ticn  system,  however,  although 
the  persons  fifty  years  old  may  be  clothed  with  silk,  and 
those  of  seventy  may  eat  flesh,  nothing  is  said  about  those 
who  are  younger  than  fifty  or  seventy  years.  We  may  sup- 
pose that  the  young  people  cannot  consume  such  things  in 
daily  life,  and  that  they  are  especially  given  to  the  old,  be- 
cause the  productive  power  of  ancient  times  was  very 
limited. 

What  we  have  described  of  the  standard  of  common  peo- 
ple, however,  is  mixed  up  with  the  theoretical  points  of 
Confucius.  But  we  want  to  know  the  actual  condition  of 
the  people  at  that  time.  There  is  a  valuable  state- 
ment given  by  Li  K'o,*  the  pupil  of  Tzu-hsia,  and  the  min- 
ister of  Marquis  Wen  of  Wei  (128-165  A.  K.  or  424-387 
B.   C),   indicating  exactly  the  economic  condition  of  the 

'  Li  Ki,  bk.  iii,  p.  240. 

"  Ibid.,  p.  244,  and  l>k.  x.  p.  462. 

•  His  name  is  correctly  recorded  in  the  Historical  Record  (chs.  xxx 
and  cxxix)  and  in  the  History  of  Han  (ch.  xci).  But  the  latter  makes 
a  mistake  in  ch.  xxiv,  where  his  name  is  given  as  Li  Kuci. 


268       THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

farmers.  Since  Li  K*o  lived  shortly  after  Confucius,  but 
much  earlier  than  Mencius,  his  statement  probably  shows 
the  facts  of  Confucius'  age.     He  says: 

Now,  one  man,  having  five  mouths  in  all,  cultivates  the  land 
of  one  hundred  acres.  He  reaps  annually  from  each  acre  one 
bushel  and  a  half  of  grain ;  the  total  amount  is  one  hundred 
and  fifty  bushels.  Subtracting  fifteen  bushels  for  the  taxa- 
tion of  one-tenth,  there  remain  one  hundred  and  thirty-five 
bushels.  For  food,  each  person  consumes  one  bushel  and  a 
half  monthly;  five  persons  consume  ninety  bushels  for  the 
whole  year.  There  remain  forty-five  bushels.  One  bushel  is 
worth  thirty  coins;  the  total  value  is  one  thousand  three  hun- 
dred fifty  coins.  Subtracting  three  hundred  coins  for  the  ex- 
pense of  social  gathering  and  religious  worship,  there  remain 
one  thousand  fifty  coins.  For  clothing,  each  person  spends 
three  hundred  coins  on  the  average ;  five  persons  spend  one 
thousand  five  hundred  for  the  whole  year.  There  is  a  de- 
ficit of  four  hundred  fifty.  If  they  are  so  unlucky  as  to  have 
expense  for  sickness  and  funeral,  or  for  the  extra  impositions 
of  government,  such  expenditure  still  has  not  been  included 
in  this  account.^ 

This  statement  gives  a  statistical  view  of  the  unhappy 
condition  of  farmers,  and  is  the  most  reliable  information 
which  we  now  have.  Since  agriculture  was  the  principal 
occupation  of  the  ancient  Chinese,  the  economic  condition 
of  the  whole  people  must  have  been  very  bad.  Hence  Li  K'o 
introduced  his  famous  system  of  equalizing  the  price  of 
grain  for  their  relief.^  Such  a  bad  condition  was  probably 
not  confined  to  the  state  of  Li  K'o,  but  prevailed  over  the 
whole  empire.  It  is  no  wonder  that  Confucius  devotes  his 
attention  first  to  the  economic  life  of  the  people. 

*  History  of  Han,  ch.  xxiv. 
2  See  infra. 


CHAPTER  XVI 

Particular  Expenditures 

Although  the  standard  of  living  may  include  all  kinds 
of  expenditures,  we  prefer  to  discuss  some  particular  ex- 
penditures separately,  in  order  to  show  the  characteristics 
of  Confucius'  system.  These  expenditures  are :  the  expendi- 
ture for  a  marriage,  the  expenditure  for  a  funeral  and 
mourning,  the  expenditure  for  ancestor-worship,  and  the 
expenditure  for  social  intercourse.  The  theories  of  these 
expenditures  are  extremely  complex;  they  are  not  only 
economic,  but  also  sociological,  political,  philosophical, 
ethical  and  religious.  Of  course,  we  are  most  interested 
in  the  economic  aspect.  But,  as  we  are  studying  the  system 
of  Confucius,  we  have  to  consider  many  other  aspects  which 
are  peculiar  to  Confucius  and  are  correlative  to  economics. 

I.  marriage 
First,  we  shall  discuss  the  expenditure  for  a  marriage. 
Since  Confucius  makes  marriage  a  necessity  of  human  life, 
he  reduces  its  expei'se  to  the  minimum.  According  to  the 
Canon  of  Rites,  there  are  six  rites  for  marriage.  After  the 
family  of  the  girl  has  accepted  the  proposal,  the  first  rite  is 
"giving  a  choice"  to  her  father;  the  second  is  "  inquiring 
into  the  name  "  of  the  girl.  These  two  rites  are  consum- 
mated at  one  time.  The  third  is  "  giving  the  lucky  re- 
sult "  of  divination;  the  fourth  is  "giving  engagement;" 
the  fifth  is  first  "asking  about  the  date"  of  the  wedding, 
and  then  announcing  it.  All  these  five  rites  are  performed 
by  a  proxy  sent  by  the  father  of  the  bridegroom.     The  sixth 

269 


2JQ       THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

rite  is  "  personal  receiving,"  an  act  of  the  bridegroom  him- 
self. 

The  rite  of  "  giving  engagement "  is  performed  by  the 
use  of  a  bundle  of  silk  and  two  pieces  of  the  fur  of  a  deer. 
The  bundle  of  silk  contains  five  rolls;  each  roll  is  folded 
double,  and  is  forty  cubits  in  length.^  Three  rolls  are  black, 
and  the  other  two  crimson.  The  two  pieces  of  deer's  fur 
can  be  used  for  dress.  Besides  *'  giving  engagement,"  the 
other  five  rites  are  all  performed  by  the  use  of  a  domestic 
goose  for  a  present.  This  token  is  intended  to  represent 
the  regularity  and  faithfulness  of  the  relation  of  husband 
and  wife.  Requiring  only  five  geese,  five  rolls  of  silk  and 
two  pieces  of  deer's  fur,  this  ceremony  of  marriage  is  inex- 
pensive. Of  course,  the  expense  of  an  American  marriage 
can  cut  down  to  even  less  than  this,  but,  according  to  Con- 
fucius' system,  this  is  the  lowest  limit. 

In  the  Canon  of  Poetry,  there  is  a  poem  written  by  a 
heroic  girl.  She  has  promised  to  marry  a  man  of  Feng, 
but  his  family  wants  to  receive  her  before  the  rites  of  mar- 
riage are  completed.  She  refuses  to  allow  them  to  do  so,  on 
the  ground  that  marriage  is  a  most  sacred  thing  and  can- 
not be  consummated  without  the  full  observance  of  rites. 
His  family  prosecutes  her  and  causes  her  to  be  brought  to 
court.  But  she  insists  that,  if  one  single  thing  has  not 
been  presented,  and  one  single  rite  has  not  been  completed, 
she  will  not  leave  her  home  even  if  she  sacrifices  her  life. 
Her  poem  runs  as  follows :  "  Although  you  have  brought 
me  to  court,  your  offerings  for  the  rites  of  marriage  are  not 
sufficient."  It  says  again :  "  Although  you  have  brought 
me  by  prosecution,  I  will  not  follow  you."  ^ 

By  selecting  this  poem  in  his  Canon  for  an  example  of  a 

^  Li  Ki,  bk.  xviii,  p.   172. 

'  Classics,  vol.  iv,  pt.  i,  pp.  27-8. 


PARTICULAR  EXPENDITURES 


271 


marriage  that  is  good,  not  only  morally,  but  also  legally, 
Confucius  shows  that  he  does  not  approve  of  allowing  peo- 
ple to  marry  without  going  through  the  six  rites,  on  the 
pretense  that  they  have  not  the  means.  Indeed,  he  regulates 
the  relation  of  husband  and  wife  very  carefully  in  the  be- 
ginning, and  does  not  make  marriage  too  easy  for  the  young 
couple. 

Although  Confucius  does  not  make  marriage  too  easy,  he 
makes  it  as  simple  as  possible.  He  is  most  fond  of  music, 
and  employs  it  for  all  fortunate  occasions ;  yet  he  omits 
music  from  the  ceremonies  of  marriage.    Confucius  says: 

The  family  whose  daughter  is  married,  does  not  extinguish  its 
candles  for  three  nights,  thinking  of  the  separation  that  has 
taken  place.  The  family  that  has  received  the  bride,  for  three 
days  has  no  music ;  the  bridegroom  is  thinking  that  he  is  about 
to  take  the  place  of  his  parents.^ 

According  to  this  expression,  marriage  is  not  a  gay  cere- 
mony, but  a  solemn  business  through  which  the  son  as- 
sumes responsibilities  of  his  own  and  feels  that  his  parents 
are  getting  older.  It  should  be  quiet  and  sober.  Therefore, 
the  Record  of  Rites  says  that  at  the  marriage  ceremony, 
music  is  not  employed,  and  that  there  is  no  congratulation  on 
marriage.^ 

Confucius  limits  the  expense  of  marriage  to  a  minimum, 
but  he  cannot  help  making  the  feast  necessary.  Since  he 
separates  the  two  sexes  very  severely,  he  must  not  allow  the 
new  couple  to  keep  so  quiet  as  not  to  give  a  conspicuous 
notice  to  society.  In  order  to  mark  the  new  relation  be- 
tween bride  and  bridegroom,  a  feast  is  necessary  to  notify 
the  public.  The  Record  of  Rites  says:  "The  bridegroom 
should  make  a  feast  and  invite  the  people  of  the  town  and 

*  Li  Ki,  bk.  v,  p.  322.  *  Ibid.,  bk.  ix,  p.  442. 


272       THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

his  friends  to  attend  it,  in  order  to  give  its  due  importance 
to  the  separate  position  of  man  and  woman."  ^  Of  course, 
this  feast  must  cost  something,  but  its  expense  cannot  be 
saved  because  it  has  social  and  ethical  value. 

As  the  feast  must  necessarily  be  given  by  the  bridegroom 
to  his  townsmen  and  his  friends,  although  there  is  to  be  no 
congratulation,  the  guests  cannot  simply  attend  the  feast 
without  any  social  obligation.  Hence  the  congratulation 
takes  place  under  another  name.  It  is  not  said  to  be  a  con- 
gratulation upon  the  marriage,  but  only  a  present  for  the 
entertainment  of  the  guests.  The  language  used  by  the  mes- 
senger for  such  a  congratulation  is  given  by  the  "  Details 
of  Rites :"  "  So-and-so  has  sent  me.  Having  heard  that 
you  are  having  guests,  he  has  sent  me  with  this  present."  " 
Such  a  present  may  consist  of  four  pots  of  spirits,  ten 
pieces  of  dried  meat,  and  a  dog.^  Although  it  may  not  be 
too  expensive,  it  will  yet  cost  a  family  a  good  deal.  As  mar- 
riage is  necessary  in  the  social  life,  this  expenditure  is  also 
necessary.  In  the  present  day,  however,  such  a  congratula- 
tion is  directly  expressed  for  the  happiness  of  the  wedding, 
and  not  for  the  gathering  of  the  guests. 

To-day,  the  Chinese  still  observe  these  rites  of  marriage 
in  their  essentials.  But  they  increase  the  expense  greatly. 
It  would  be  much  better  to  return  to  the  rules  of  Confucius, 
and  make  marriage  again  simple  and  economical. 

II.    FUNERALS 

Second,  we  shall  study  the  expenditure  for  the  rites  of  a 
funeral  and  mourning.  This  is  the  most  important  point 
in  the  religion  of  Confucius,  and  we  cannot  help  discussing 
it  at  some  length.  We  shall  take  up  certain  details  first, 
and  discuss  the  theory  later. 

1  Li  Ki,  bk.  i,  p.  78.  2  j^id.  » Ibid.,  bk.  xv.  p.  76. 


PARTICULAR  EXPENDITURES 


273 


At  the  ceremony  of  ''  slighter  dressing  "  of  the  dead, 
the  sheet  for  a  ruler's  body  is  embroidered;  for  that  of  a 
great  official,  white  silk;  for  that  of  a  student,  black  silk; — 
each  has  one  sheet.  But  there  are  nineteen  suits  of  clothes 
for  each  of  them;  a  suit  is  made  up  of  a  long  robe  and  a 
shorter  one  placed  over  it,  and  there  must  be  the  upper  gar- 
ment together  with  the  lower  garment.  At  the  "  fuller 
dressing,"  each  of  them  has  two  sheets;  but  a  ruler  has  one 
hundred  suits  of  clothes;  a  great  official,  fifty;  and  a  student, 
thirty.  For  the  coffins,  the  largest  or  outermost  coffin  of 
a  ruler  is  eight  inches  thick,  the  next,  six  inches,  and  the 
innermost,  four  inches.  The  larger  coffin  of  a  great  official 
of  the  highest  grade  is  eight  inches  thick;  and  the  inner, 
six  inches;  for  one  of  the  lowest  grade,  the  dimensions  are 
six  inches  and  four.  The  coffin  of  a  student  is  six  inches 
thick.  For  the  outer  shell  of  the  coffin,  a  ruler  uses  pine; 
a  great  official,  cypress;  a  student,  various  kinds  of  wood.^ 
When  Confucius  became  the  magistrate  of  Chung-tu,  he 
made  an  ordinance  that  the  coffin  of  the  common  people 
should  be  four  inches  thick,  and  its  shell  five.^  This  is 
only  an  instance  to  show  the  expenditure  for  the  funeral. 

Now,  we  come  to  the  contributions  for  the  funeral.  As 
the  funeral  system  is  so  expensive,  there  is  really  a  need 
of  contributions,  besides  the  fact  that  they  have  ethical  and 
social  reasons.  According  to  the  Canon  of  Rites  and  the 
Spring  and  Autumn,  we  may  divide  these  contributions 
into  three  kinds.  First,  there  are  the  contributions  for  the 
dead.  Some  are  called  "  shroud,"  such  as  the  sheets  and 
clothes.  Some  are  called  ''  gift,"  such  as  the  "  spiritual 
vessels."  This  gift  is  not  regular,  but  just  according  to 
what  the  contributor  has.  If  a  prince  of  state  gives  it  to  a 
student,  it  will  be  one  hundred  eighty  cubits  of  silk.    When 

^  Li  Ki,  bk.  xix.  pp.  185-199.  *  Ibid.,  bk.  ii,  p.   150. 


274       ^^^  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

the  contributor  knows  the  dead,  his  contribution  should  be 
of  the  first  kind.  Second,  there  are  the  contributions  for 
the  mourner.  This  is  called  "  help,"  and  is  performed  by 
the  use  of  money  and  other  articles  of  wealth.  When  the 
contributor  knows  the  mourner,  his  contribution  should  be 
of  the  second  kind,  in  order  to  form  a  mutual  help  and  to 
supply  the  deficiency.  Third,  there  are  the  contributions  for 
the  dead  and  the  mourner  both.  These  are  called  *'  cover- 
ing." Such  things  are  the  bundle  of  silk,  carriage,  horse, 
sheep,  etc.  They  are  used  both  for  the  obsequies  of  the 
dead,  and  for  the  financial  assistance  of  the  mourner.  When 
the  contributor  knows  them  both,  his  contribution  should 
be  of  the  third  kind.  By  these  contributions,  society  is 
interwoven  like  a  net,  and  wealth  is  distributed  to  and  fro 
like  the  tide.  But  they  form  an  expenditure  to  the  con- 
tributor. If  a  poor  man  cannot  contribute  anything,  it  is 
a  custom  of  the  Chinese  for  him  to  help  his  relatives  and 
friends  by  his  labor  instead  of  wealth.  Generally  a  man, 
for  the  funeral  of  his  relatives  and  close  friends,  contributes 
both  labor  and  wealth. 

The  reasons  Confucius  makes  the  rites  of  funeral  so  ex- 
pensive are  four:  (i)  ethical,  (2)  aesthetic,  (3)  social  and 
(4)  economic.  Let  us  first  consider  the  ethical  reason.  We 
already  know  that,  under  Confucius'  teaching,  filial  piety 
is  one  of  the  chief  virtues  of  his  moral  code.  We  have 
already  seen  that,  when  the  parents  are  living,  the  rites  of 
serving  them  are  very  numerous;  but  how  is  it  when  they 
are  dead?  When  one  treats  his  parents  well  at  the  be- 
ginning, he  must  treat  them  well  at  the  end.  If  he  is  careful 
for  their  living  and  careless  for  their  death,  it  means  that 
he  is  respectful  to  those  who  have  knowledge  and  disre- 
spectful to  those  who'  have  no  knowledge;  it  denotes  a 
rebellious  heart  and  is  the  practice  of  the  unfaithful  man. 
Even  if  we  have  a  rebellious  heart  toward  a  servant,  we  are 


PARTICULAR  EXPENDITURES 


275 


Still  ashamed;  how  can  we  have  such  a  heart  toward  our 
parents?  Death  is  the  end  of  human  life;  it  affords  our 
last  chance  to  render  service  to  our  parents.^  Confucius 
says :  *'  Man  may  not  have  shown  his  self-devotion  to  some- 
thing else,  but  he  must  show  it  at  the  funeral  of  his  par- 
ents." ^  Mencius  says :  ''  The  nourishment  of  parents  when 
living  is  not  sufficient  to  be  accounted  the  great  thing.  It 
is  only  in  the  performing  of  their  obsequies  when  dead  that 
we  have  what  can  be  considered  the  great  thing."  ^  Accord- 
ing to  Confucius,  if  a  man,  at  the  death  of  his  parents,  has 
no  devotion,  he  must  be  a  hard-hearted  creature,  without 
any  feeling  of  humanity.  Therefore,  Confucius  establishes 
his  funeral  rites  to  make  it  necessary  for  the  people  to  ob- 
serve them.  This  is  really  an  advancing  step  to  lead  the 
people  to  do  their  duty:  since  they  must  serve  their  parents 
faithfully  even  after  they  are  dead,  how  faithful  must  they 
then  be  when  their  parents  are  alive! 

Ethical  reasons  are  of  fundamental  importance  in  con- 
nection with  the  funeral  rites,  and  yet  wc  cannot  explain  on 
ethical  grounds  why  such  rites  should  be  as  expensive  as 
Confucius  prescribes.  This  is  because  of  aesthetic  consid- 
erations. Tzu-yu  says :  *'  Among  the  rites,  some  are  in- 
tended to  lessen  the  display  of  feeling,  while  others  pur- 
posely introduce  things  to  excite  it.  To  give  direct  vent 
to  the  feelings  and  display  them  without  restraint  is  the  way 
of  barbarism."  Therefore,  the  funeral  rites  are  not  simply 
to  express  the  feeling  of  sorrow,  but  also  carefully  to  regu- 
late it  in  a  proper  way,  for  the  direction  of  average  people. 
He  continues :  "  Whenever  a  man  dies,  there  arises  a  feel- 
ing of  disgust  at  the  corpse.  .  .  .  On  this  account,  there 
is  the  wrapping  of  it  in  the  shroud,  and  there  are  the  cur- 

'  Ilsun  Tzu,  bk.  xix. 

•  Classics,  vol.  i,  p.  344.  '  Ibid.,  vol.  ii,  p.  322. 


2^76       THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

tains,  plumes  and  other  ornaments  of  the  coffin,  to  preserve 
men  from  that  feehng  of  disgust.'*  ^ 

Hsun  Tzu  has  given  the  same  reason  as  that  of  Tzu-yu. 
If  the  dead  has  no  decoration,  it  becomes  a  bad  thing;  and 
if  it  becomes  a  bad  thing,  man  will  have  no  sorrow  for  it. 
Just  losing  a.  parent  within  a  single  day,  and  burying  him, 
nevertheless,  without  any  sorrow,  it  is  similar  to  the  death 
of  a  beast.  How  can  it  be  done  in  such  a  way  without 
great  shame?  Therefore,  in  the  ordering  of  funeral  rites, 
there  are  added  more  decorations  at  each  step  of  the  cere- 
mony, in  order  to  counteract  such  a  tendency.^ 

Beside  the  ethical  and  aesthetic  reasons,  there  is  the 
social  reason.  As  Confucius  marks  the  social  distinctions 
for  the  living,  he  also  marks  them  for  the  dead.  An  em- 
peror is  placed  in  his  coffin  on  the  seventh  day  after  his 
death,  and  interred  in  the  seventh  month.  A  prince  of  a 
state  is  placed  in  his  coffin  on  the  fifth  day,  and  interred  in 
the  fifth  month.  A  great  official,  a  student,  and  the  common 
people  are  placed  in  the  coffin  on  the  third  day,  and  interred 
in  the  third  month.  ^  The  reasons  why  the  funeral  is  thus 
delayed  are,  ( i )  that  the  articles  required  for  the  dead  may 
be  completed,  and  (2)  that  the  guests  coming  to  attend  the 
funeral  may  arrive.  But  we  must  understand  that  during 
such  a  period  there  is  great  expense. 

There  is,  however,  the  significance  of  social  distinction. 
The  funeral  of  an  emperor  is  attended  by  all  the  princes 
under  the  imperial  jurisdiction;  that  of  a  prince,  by  those 
of  the  states  which  have  diplomatic  relations ;  and  that  of  a 
student  and  the  common  people,  by  all  their  relatives  and 
friends.  But  the  funerals  of  those  who  have  been  pun- 
ished by  criminal  law  are  not  allowed  to  be  attended  by  any 

^  Li  Ki,  bk.  ii,  p.  177.  2  g^^  xix. 

'  Li  Ki,  bk.  iii,  pp.  222-3.  ' 


PARTICULAR  EXPENDITURES 


277 


people,  except  the  wives  and  sons.  There  are  only  three 
suits,  and  the  coffins  are  only  three  inches  thick.  The 
coffins  are  not  allowed  to  have  any  decorations,  or  to  be  con- 
veyed away  in  the  day  time.  They  are  buried  at  night,  and 
excluded  from  the  regular  ceremony.  There  is  no  mourn- 
ing at  all  for  them ;  after  the  burial  everything  is  over. 
This  is  a  most  disgraceful  thing.  Therefore,  the  scale  of 
the  expenditure  for  a  funeral  is  a  reflection  of  the  life  of  the 
dead;  and,  if  the  financial  condition  allows  it,  a  man  should 
not  let  his  parents  fall  into  the  class  of  criminals.  When 
a  man  is  living,  he  should  be  glorious,  and  when  he  dies, 
he  should  be  bitterly  lamented.^  This  is  the  social  reason 
for  the  expensive  funeral. 

Finally,  and  most  important  for  our  treatment,  there  is 
an  economic  reason, — the  satisfaction  of  human  wants. 
This  is  explained  very  clearly  by  Mencius.     He  says : 

In  the  most  ancient  times,  there  were  some  who  did  not  inter 
their  parents.  When  their  parents  died,  they  took  them  up 
and  threw  them  into  some  water-channel.  Afterwards,  when 
passing  by  them,  they  saw  foxes  and  wild-cats  devouring  them, 
and  flies  and  gnats  biting  at  them.  The  perspiration  started 
out  upon  their  foreheads,  and  they  looked  away,  unable  to 
bear  the  sight.  It  was  not  due  to  other  people  that  this  per- 
spiration flowed.  The  emotions  of  their  own  hearts  affected 
their  faces  and  eyes,  and  instantly  they  went  home,  and  came 
back  with  baskets  and  spades  and  covered  the  bodies.^ 

This  is  a  description  of  the  development  of  the  funeral  in  the 
rudest  stage,  and  it  indicates  that  funeral  is  necessary  to 
satisfy  the  psychological  wants  of  man. 

Since  society  is  higher  in  civilization,  the  human  wants 
for  a  funeral  are  more  complex;  hence  Confucius'  system 

•  Classics,  vol.  1.  p.  349.  '  Ibid.,  vol.   ii,   pp.  259-260. 


2^8       ^^^  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

arises.  Man  does  not  satisfy  his  wants  by  a  simple  cover- 
ing of  the  body  of  his  parent,  but  in  a  very  handsome  way. 
This  is  characteristic  of  human  wants.  After  Mencius 
had  buried  his  mother,  Chung  Yii,  his  pupil,  questioned 
him  about  the  wood  of  the  coffin,  which  seemed  too  good. 
Mencius  repHed : 

Anciently,  there  was  no  rule  for  the  size  of  either  the  inner  or 
the  outer  coffin.  In  middle  antiquity  [the  Hsia  and  the  Yin 
dynasties],  the  inner  coffin  was  made  seven  inches  thick,  and 
the  outer  one  the  same.  This  was  done  by  all,  from  the  em- 
peror to  the  common  people,  and  not  simply  for  the  beauty 
of  the  appearance,  but  because  they  thus  satisfied  the  natural 
feelings  of  their  hearts.  If  prevented  by  statutory  regula- 
tions from  making  their  coffins  in  this  way,  men  cannot  have 
the  feeling  of  pleasure.  If  they  have  not  the  money  to  make 
them  in  this  way,  they  cannot  have  the  feeling  of  pleasure. 
When  they  were  not  prevented,  and  had  the  money,  all  the  an- 
cients used  this  style.  Why  should  I  alone  not  do  so?  More- 
over, is  there  no  satisfaction  to  the  natural  feelings  of  a  man, 
in  preventing  the  earth  from  getting  near  to  the  bodies  of  his 
dead?  I  have  heard  that  the  superior  man  will  not,  for  all 
the  world,  be  niggardly  to  his  parents.^ 

Again,  Mencius  says :  "  To  make  ihe  people  have  no 
dissatisfaction  about  the  nourishment  of  the  living  and  the 
funeral  of  the  dead,  is  the  first  principle  of  a  good  govern- 
ment." ^  In  other  words,  the  economic  condition  of  the 
people  is  the  first  object  of  a  good  government,  and  such  a 
condition  must  be  satisfactory.  But  what  we  should  under- 
stand is  that  the  Confucians  put  the  nourishment  of  the  liv- 
ing and  the  funeral  of  the  dead  in  the  same  rank,  as  the 
two  necessities  of  economic  life. 

These   four    reasons   explain   why   Confucius   made   the 

*  Classics,  vol.  ii,  pp.  221-2.  '  Ibid.,  p.  131. 


PARTICULAR  EXPENDITURES 


279 


funeral  rites.  But  we  may  raise  a  question  as  to  whether 
he  was  so  superstitious  as  to  beheve  that  the  dead  really 
have  knowledge  or  power.  The  answer  must  be  no.  On 
such  an  important  point,  we  must  quote  him  directly.  Con- 
fucius says : 

In  dealing  with  the  dead,  if  we  treat  them  as  if  they  were  en- 
tirely dead,  that  would  show  a  want  of  affection,  and  should 
not  be  done;  or,  if  we  treat  them  as  if  they  were  entirely 
alive,  that  would  show  a  want  of  wisdom,  and  should  not  be 
done.  On  this  account,  the  vessels  of  bamboo  used  in  connec- 
tion with  the  burial  of  the  dead  are  not  fit  for  actual  use ; 
those  of  earthenware  cannot  be  used  to  wash  in ;  those  of 
wood  are  incapable  of  being  carved;  the  lutes  are  strung,  but 
not  evenly ;  the  pan  pipes  are  complete,  but  not  in  tune ; 
the  bells  and  musical  stones  are  there,  but  they  have  no  stands. 
These  things  are  called  ''  spiritual  vessels  ",  because  the  dead 
are  treated  as  the  unknowable  spirits.^ 

From  this  statement,  we  know  that  Confucius  treats  the 
dead  as  midway  between  dead  and  alive,  in  order  to  avoid 
being  either  unkind  or  unwise.  There  is  another  statement 
of  his  which  is  very  striking.  When  Tzu-kung  asks  him 
whether  or  not  the  dead  have  knowledge,  he  replies: 

If  J  were  to  say  that  the  dead  have  knowledge,  I  am  afraid 
that  filial  sons  and  dutiful  grandsons  would  injure  their  sub- 
stance in  paying  the  last  offices  to  the  departed;  and  if  I  were 
to  say  that  the  dead  have  no  knowledge,  I  am  afraid  that  un- 
filial  sons  and  undutiful  grandsons  would  leave  their  parents 
unbiiricd.  If  you  wish  to  know  whether  the  dead  have  knowl- 
edge or  not,  you  will  know  it  yourself  when  you  die. 
There  is  no  need  to  discuss  this  point  at  the  present.^ 

*  Li  Ki,  bk.  ii,  p.  148. 

"  Park  of  Narratives,  bk.  xviii.     Cf.  Classics,  vol.  i,  p.  99. 


28o       THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

Confucius  regulates  not  only  the  rites  oi  funeral,  but  also 
the  periods  of  mourning,  which  have  great  importance 
for  economic  life.  We  shall  not  go  intO'  any  details  of 
mourning,  except  the  mourning  for  parents.  The  period 
of  mourning  for  parents  in  ancient  times  was  one  year 
only.  Confucius  doubles  this  period;  the  actual  length  of 
time  is  twenty-five  months,  and  the  nominal  title  is  "  three 
years'  mourning."  Within  this  period,  the  son  should  not 
drink  wine,  not  eat  meat,  not  live  with  his  wife.  Confucius 
says :  "  A  superior  man,  during  the  whole  period  of  mourn- 
ing, does  not  enjoy  pleasant  food  which  he  may  eat,  nor  de- 
rive pleasure  from  music  which  he  may  hear.  He  also  does 
not  feel  at  ease,  if  he  is  comfortably  lodged.  Therefore, 
he  does  not  do  such  things  at  all."  ^  Mencius  says:  "  For 
the  three  years'  mourning,  the  garment  of  coarse  cloth 
with  its  lower  edge  even,  and  the  eating  of  congee,  are 
common  to  all,  from  the  emperor  tO'  the  mass  of  the  peo^ 
pie."  ^  This  is  a  return  by  the  son  for  the  benefits  he  has 
received  from  his  parents.  Confucius  explains :  "  It  is  not 
till  a  child  is  three  years  old  that  it  is  allowed  tO'  leave  the 
arms  of  its  parents.  Hence  the  three  years'  mourning  is  a 
universal  system  of  the  empire."  * 

The  rites  of  funeral  and  mourning  are  the  creeds  of  Con- 
fucius. When  Confucius  and  his  disciples  preach  the  doc- 
trine of  filial  piety,  these  rites  are  used  as  the  means  for 
conversion.  But  the  anti-Confucians  attack  them  as  the 
weakest  points.  Among  all  the  anti-Confucians,  Mo  Ti  is 
the  chief.  He  is  a  pupil  of  Confucius,  but  he  is  not  satisfied 
with  the  rites  of  funeral  and  mourning,  so  he  establishes  his 
new  school  against  his  old  master.  These  rites  are  the  fun- 
damental   differences   between   Confucianismi  and    Moism. 

^  Classics,  vol.  i,  p.  328.  2  jf^id.^  vol.  ii,  p.  236. 

'  Ibid.,  vol.  i,  p.  328. 


PARTICULAR  EXPENDITURES  28 1 

But  why  does  Mo  Ti  differ  from  Confucius  at  this  point? 
His  argument  is  based  entirely  upon  economic  grounds. 
As  we  are  treating  the  economic  principles  of  Confucius, 
we  may  take  up  some  points  from  the  argument  of  Mo  Ti, 
in  order  to  enable  us  to  understand  Confucianism  better. 

The  economic  argument  of  Mo  Ti  has  two  points :  first, 
these  rites  cannot  increase  wealth ;  and  second,  they  cannot 
increase  population.  By  the  expensive  funeral,  too  much 
wealth  is  buried,  and  by  the  long  period  of  mourning,  pro- 
duction is  stopped  too  long.  The  existing  wealth  which  has 
been  accumulated  from  the  past  is  thrown  away,  and  the 
coming  wealth  which  will  be  produced  in  the  future  is  pre- 
vented for  a  long  time.  This  is  against  the  law  of  increas- 
ing wealth.  During  the  different  periods  of  mourning  for 
the  different  relatives,  the  physical  condition  is  undermined, 
and  the  living  is  also  too  coarse;  hence  many  persons  die 
on  this  account.  Moreover,  the  rites  of  mourning  destroy 
the  sexual  relations  to  a  great  extent.  This  is  against  the 
law  of  increasing  population.  Therefore,  Mo  Ti  establishes 
his  funeral  laws  as  follows :  In  winter  time,  the  winter 
clothes  are  used  for  the  dead ;  in  summer,  the  summer 
clothes ;  but  there  are  no  more  than  three  suits.  The  coffin 
is  only  three  inches  thick.  The  period  of  mourning  is  only 
three  months.  As  soon  as  the  dead  is  buried,  the  living 
must  immediately  return  to  the  production  of  wealth.^ 

Mo  Ti  uses  the  economic  argument  as  the  strongest  point 
to  attack  Confucius,  and  yet  he  is  defeated  on  the  economic 
ground.  He  cares  too  much  for  production,  and  too  little 
for  consumption;  hence  he  sacrifices  the  end  to  the  means. 
This  is  the  point  for  decisive  battle  between  Confucianism 
and  Moism.  Chuang  Tzu  has  given  the  best  criticism  on 
Moism,  in  the  following: 

*  Mo  Tzu,  bk.  XXV. 


282       THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

For  life,  it  is  hard;  for  death,  it  is  cruel;  its  principle  is  too 
dry.  It  makes  men  grieve  and  lament.  Its  practice  is  difficult 
to  carry  out.  I  am  afraid  that  it  cannot  be  the  principle  of  a 
sage.  It  opposes  the  natural  feeling  of  the  world,  and  the 
world  cannot  accept  it.  Although  Mo  Tzu  can  bear  it  alone, 
how  can  he  do  anything  against  the  world  ?  As  he  is  different 
from  the  world,  he  is  too  far  away  to  be  a  king.^ 

From  this  judgment  of  Chuang  Tzu,  we  need  not  wonder 
why  Mo  Ti  has  lost  his  influence,  and  why  Confucius  has 
become  ''  The  Throneless  King."  It  is  simply  an  economic 
reason;  Confucius  satisfied  human  wants,  and  Mo  Ti  did 
not. 

We  must  not  misunderstand  and  think,  however,  that  the 
funeral  rites  of  Confucius  are  too  expensive.  He  uses  still 
the  principle  that  consumption  should  be  according  to  the 
means.  His  social  system  is  based  on  the  scale  of  virtue; 
those  of  greater  virtue  occupy  the  higher  position  and  get 
more  wealth ;  hence  they  should  have  better  funerals.  More- 
over, he  is  the  real  reformer  of  the  funeral  system  of  his 
time.  During  the  Chou  dynasty,  life  was  luxurious,  and 
the  expenditure  for  funerals  was  most  excessive,  even  to 
burying  men  alive  for  the  service  of  the  dead.  It  became 
much  better  when  Confucius  regulated  the  funeral  of  dif- 
ferent classes  by  a  certain  standard,  beyond  which  they 
could  not  go.  According  to  Confucius,  all  the  things  used 
for  the  dead  should  be  entirely  different  from  those  used 
by  living  men.  For  examples,  the  carriages  of  clay  and  the 
figures  of  straw  simply  represent  spiritual  ideas  but  do  not 
have  much  economic  value.  Even  using  a  wooden  image 
to  bury  with  the  dead  Confucius  condemns  severely, — how 
can  he  approve  a  funeral  which  is  really  too  expensive?^ 

^  Cf.  Sacred  Books,  vol.  xl,  p.  219. 
'  Li  :U,  bk.  ii,  p.  173. 


PARTICULAR  EXPENDITURES  283 

Therefore,  in  the  Spring  and  Autumn,  he  records  the  sepul- 
ture of  Huan  Wang  in  order  to  condemn  the  extravagant 
burial  even  of  an  emperor/ 

Confucius  uses  exactly  the  same  principle  for  three  years' 
mourning;  it  cannot  be  made  longer  for  the  superior  men, 
but  it  cannot  be  made  shorter  for  the  inferior  men.  All  the 
rites  of  funeral  and  mourning  are  based  on  the  golden  mean, 
and  they  satisfy  the  human  wants. 

III.    ANCESTOR-WORSHIP 

Third,  we  shall  study  the  expenditure  for  ancestor-wor- 
ship. This  is  also  a  most  important  point  in  the  religion  of 
Confucius,  and  we  must  study  it  at  its  root.  According  to 
Confucius,  ancestors  should  be  worshiped  by  all  classes, 
from  the  emperor  to  the  common  people. 

This  means  an  increase  in  expenditure.  First,  they  must 
build  the  ancestral  temples;  and  such  temples  must  be  better 
than,  or  at  least  equal  to,  the  residential  houses.  When  a 
superior  man  is  about  to  engage  in  building,  he  shouid  build 
the  temple  first,  and  the  residence  last.  Akhough  the  com- 
mon people  cannot  have  the  right  to  build  a  temple,  they 
must  give  up  some  part  of  their  house  for  the  worship  of 
their  ancestor,  and  it  must  cost  them  something.  Second, 
they  must  have  sacrificial  dress.  Those  c-fficials  who  receive 
land  for  salary  should  make  such  dress  v.'ithout  delay.  Even 
though  they  were  cold,  they  should  not  wear  the  sacrificial 
dress  for  protection.  Third,  they  must  make  the  sacri- 
ficial vessels.  Although  the  common  people  who  do  not 
receive  land  as  salary  cannot  have  them,  the  family  of  offi- 
cials must  make  them  first,  and  the  vessels  for  the  use  of 
the  living  afterwards.  Even  though  they  were  poor,  they 
should  not  sell  the  sacrificial  vessels.^  Fourth,  they  must 
have  the  offerings.     When  the  offerings  are  presented  by 

*  Third  year  of  Duke  Chuang.  '  Li  Ki,  hk.  i,  pp.  103-4. 


284       THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

the  emperor,  there  are  the  small  things,  such  as  the  sauer- 
kraut of  water  plants,  and  pickles  from  the  produce  of  dry- 
grounds;  the  fine  things,  such  as  the  stands  for  the  bodies 
of  the  three  victims  and  the  supplies  for  the  eight  dishes; 
and  those  things  produced  under  the  best  influences  of  light 
and  shade,  such  as  strange  insects,  and  the  fruits  of  plants 
and  trees.  Whatever  the  heaven  and  the  earth  have  pro^ 
duced,  if  they  can  be  used  for  offerings,  are  all  exhibited 
there  to  show  the  great  abundance  of  things/  Even  among 
the  offerings  of  the  common  people,  we  have  already  seen 
that  they  should  present  the  different  things  according  to 
the  four  seasons.^  Therefore,  in  ancestor-worship,  there 
must  be  an  expenditure  added  to  the  cost  of  living. 

Let  us  now  consider  why  Confucius  approves  ancestor- 
worship.  This  is  the  fundamental  basis  of  Confucius'  re- 
ligion. He  advocates  one  supreme  God,  but  he  has  also  a 
companion  of  God,  that  is,  one's  father.  Hence  his  re- 
ligious system  is  dualism.  God  is  our  common  father,  with- 
out whom  we  cannot  have  life;  but  we  have  alsO'  a  specific 
father,  without  whom  we  still  cannot  have  life.  If  God  is 
our  only  father,  we  may  be  born  intO'  any  other  life  and  it 
is  not  necessary  that  we  be  human  bemgs.  If  the  specific 
father  is  our  only  father,  we  may  lose  the  best  elements  of 
nature  and  have  no  spiritual  life.  Hence  Confucius  recog- 
nizes these  two  fathers;  adding  a  mother  to  them  there  is 
the  Confucian  doctrine  of  trinity.  If  we  leave  out  the 
common  father,  we  shall  be  toO'  narrow-minded,  too  ego^- 
tistic,  unkind  to  the  human  race,  and  against  the  law  of 
love.  If  we  leave  out  the  specific  father,  we  shall  be  too 
loose  in  the  family  relation,  too  altruistic,  undutiful  tO'  our 
own  father,  and  against  the  law  of  wisdom.     As  love  and 

^  Li  Ki,  bk.  xxii,  p.  238. 
2  See  supra,  pp.  260-261. 


PARTICULAR  EXPENDITURES  285 

wisdom  are  the  balance  of  Confucius,  he  combines  the  two 
principles,  and  establishes  his  dual  religion. 
Confucius  says : 

By  the  ceremonies  of  the  sacrifices  to  Heaven  and  Earth,  we 
are  to  serve  the  Supreme  God,  and  by  the  ceremonies  of  the 
ancestral  temple,  we  are  to  worship  the  ancestors.  One  who 
understands  the  ceremonies  of  the  sacrifices  to  Heaven  and 
Earth,  and  the  meaning  of  the  several  sacrifices  to  ancestors, 
will  find  the  governing  of  a  kingdom  as  easy  as  to  look  into 
his  palm.^ 

By  this  statement,  he  points  out  that  the  worship  of  God 
and  that  of  ancestor  are  equally  important  on  different 
occasions.  But  he  has  still  another  statement  to  point  out 
that  the  worship  of  God  and  that  of  ancestor  can  be  held 
on  the  same  occasion.     He  says : 

In  filial  piety  there  is  nothing  greater  than  the  reverential  awe 
of  one's  father.  In  the  reverential  awe  r^liown  to  one's  father 
there  is  nothing  greater  than  making  him  the  correlate  of 
Heaven.  The  Duke  of  Chou  was  the  man  who  first  did  this. 
Formerly  the  Duke  of  Chou  at  the  border  altar  sacrificed 
to  Hou  Chi  as  the  correlate  of  Heaven,  and  in  the  Brilliant 
Hall  he  honored  Wen  Wang,  and  sacrificed  to  him  as  the 
correlate  of  God.^ 

Indeed,  as  long  as  we  have  not  reached  the  stage  of  Great 
Similarity,  and  have  the  tie  of  family,  ancestor-worship  is 
quite  justifiable. 

There  arises  a  question  as  to  whether  Confucius  believes 
that  the  ancestor  is  really  equal  to  God.  The  answer  must 
be  no.  Tt  is  simply  that  the  descendant  contributes  the 
greatest  honor  to  his  ancestor.     Because  it  is  only  a  social 

*  Classics,  vol.  i.  p.  404. 

'  Sacred  Books,  vol.  iii,  pp.  476-7. 


286       T^HE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

honor,  Confucius  makes  the  emperor  the  only  one  to  have 
the  right  of  sacrificing  to  God;  otherwise,  as  Confucius 
recognizes  that  everyone  is  the  son  of  God,  why  should 
everyone  not  sacrifice  to  him,  and  why  should  everyone  not 
make  his  own  father  equal  to  God?  In  the  social  system 
of  Confucius,  the  emperor  is  the  chief  personality,  and  in 
his  moral  system,  filial  piety  is  the  chief  virtue;  hence  the 
father  or  ancestor  of  the  emperor  can  enjoy  the  greatest 
honor,  and  the  emperor  sacrifices  to  him  for  the  showing 
of  the  practice  of  filial  piety  to  the  empire.  Moreover,  the 
ancestor  who  is  made  the  correlate  of  God  must  be  the  most 
famous  one  of  the  dynasty;  the  number  of  those  ancestors 
never  can  be  more  than  two,  and  the  one  must  be  separated 
from  the  other  when  the  one  is  placed  as  a  companion  of 
God.  Therefore,  we  are  sure  that  Confucius  does  not  re- 
gard the  ancestor  as  God. 

Does  Confucius  believe  in  a  soul?  Yes.  It  is  the  soul 
to  which  the  worship  is  directed.  As  soon  as  the  dead  is 
buried,  its  soul  is  received  home  immediately,  and  it  is 
represented  by  a  tablet.  Confucius  says :  "  The  physical 
body  goes  downwards,  but  the  intelligent  spirit  is  on  high."  ^ 
He  says  again :  "  The  bones  and  flesh  molder  below,  and, 
hidden  away,  become  the  earth  of  the  fields;  but  the  spirit 
issues  forth,  and  is  displayed  on  high  in  a  condition  of 
glorious  brightness."  ^  The  Record  of  Rites  also  says : 
"  The  spiritual  soul  returns  to  heaven,  while  the  physical 
body  returns  to  earth."  ^ 

However,  Confucius  does  not  prove  the  existence  of  the 
soul.  The  Record  of  Rites  says :  "  The  flesh  of  the  victim 
may  be  presented  raw  and  as  a  whole,  or  cut  up  in  pieces, 
or  sodden,  or  thoroughly  cooked;  but  how  can  we  know 

^  Li  Ki,  bk.  vii,  p.  369.  2  7^^^?.^  bk,  xxi,  p.  220. 

^  Ibid.,  bk.  ix,  p.  444, 


PARTICULAR  EXPENDITURES  287 

whether  the  spirit  does  enjoy  it?  It  is  simply  that  the  sac- 
rificer  shows  his  reverence  to  the  utmost  of  his  power."  ^ 
A  similar  statement  is  found  in  many  places  of  the  Record 
of  Rites.^  In  fact,  the  mind  of  Confucius  is  not  only  re- 
ligious, but  also  scientific;  hence,  according  to  him,  the  soul 
is  an  unknowable  spirit. 

If  the  soul  is  unknowable,  why  does  Confucius  make 
ancestor-worship  necessary?  It  is  only  on  the  ethical 
ground.  As  we  have  already  said  that  filial  piety  is  the 
chief  virtue  of  his  moral  system,  should  a  son  stop  observ- 
ing such  an  important  principle  after  the  death  of  his  par- 
ents? Certainly  not.  It  is  by  ancestor-worship  that  the 
nourishment  of  parents  is  followed  up  and  filial  duty  to 
them  perpetuated.^  Confucius  says :  "  Serving  the  dead 
as  they  were  served  when  alive,  and  serving  the  departed 
as  if  they  were  still  abiding  among  us;  this  is  the  summit 
of  filial  conduct."  *  Therefore,  ancestor-worship  is  exclu- 
sively for  the  sake  of  virtue,  and  the  worshiper  does  not 
seek  anything  for  his  own  benefit.^  This  is  the  noblest 
character  of  the  religion  of  Confucius. 

Since  China  has  adopted  Confucianism  as  the  state  re- 
ligion, everyone  must  conform  to  the  filial  duties.  Accord- 
ing to  the  Law  Code  of  the  Ts'ing  Dynasty,  all  the  monks 
and  nuns  of  the  churches  of  Buddhism  and  Taoism  are  re- 
quired to  kneel  before  their  parents,  to  worship  their  an- 
cestors, and  to  follow  the  mourning  system.  If  they  do 
not  obey  this  law,  they  shall  be  punished  with  one  hundred 
blows  with  the  long  stick,  and  shall  be  driven  out  of  their 
monastery  to  stay  at  home."  This  shows  the  peculiar  char- 
acter of  the  Chinese.    Although  they  allow  everyone  to  have 

*  Li  Ki,  bk.   ix.  p.  446.  '  Ibid.,  I)k.  ii.  pp.   169,  177. 

•  Ibid.,  bk.  xxii,  p.  237.  ♦  Classics,  vol.  i.  p.  403. 

•  Li  Ki,  bk.  xxii.  p.  237.  •  Ch.  xvii. 


288       THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

perfect  freedom  of  belief,  they  compel  him  to  perform  the 
social  and  ethical  duties.  Therefore,  according  to  the 
view  of  the  Chinese,  ancestor-worship  is  not  a  religious 
rite,  in  the  English  sense,  but  a  social  and  ethical  obligation. 
In  conclusion,  for  the  funeral  rites,  the  mourning  system, 
and  ancestor-worship,  the  Chinese  not  only  observe  the 
teachings  of  Confucius,  but  also  go  a  little  farther,  although 
changes  in  many  details  are  necessary. 

IV.    SOCIAL  INTERCOURSE 

Fourth,  we  shall  study  the  expenditure  for  social  inter- 
course, namely,  "  the  presents  of  introduction."  Accord- 
ing to  the  ceremonies  of  Confucius,  when  anyone  calls  on 
another  for  the  first  time,  he  must  bring  a  present  to  ex- 
press his  respect  and  sympathy.  When  the  feudal  princes 
pay  their  visit  to  the  emperor,  or  visit  among  themselves; 
when  a  man  first  becomes  an  officer,  or  first  advances  to  a 
higher  official  rank,  and  then  pays  his  first  visit  to  his 
ruler,  or  his  superior,  or  his  compeer;  when  officials  call 
on  the  foreign  princes  who  have  just  come  to  visit  their 
own  county;  when  the  boy  first  meets  his  teacher;  when 
a  woman  first  sees  her  parents-in-law,  and  the  princess  or 
queen;  and,  indeed,  when  all  persons  first  meet  other 
persons  of  higher  rank  or  the  same  rank;  it  is  necessary  to 
take  presents.  But  such  presents  are  not  made  by  su- 
periors to  their  inferiors. 

The  things  used  for  presents  of  introduction  are  regu- 
larly prescribed.  They  are  different  according  to  the  so- 
cial standing  of  the  callers,  and  have  representative  signi- 
ficance referring  to  their  personal  characters.  The  present 
of  the  emperor  is  spirits  of  black  millet.  He  is  too  high  to 
be  a  guest  of  the  feudal  princes,  and  yet,  when  he  comes 
to  inspect  their  state,  he  uses  the  spirits  in  their  ancestral 
temple  in  order  to  show  the  ceremony  of  his  arrival.     The 


PARTICULAR  EXPENDITURES  289 

present  of  the  feudal  princes  is  their  symbols  of  jade.  The 
present  of  a  high  minister  is  a  lamb;  and  that  of  a  great 
official,  a  goose;  both  are  alive.  The  present  of  a  student 
is  a  dead  pheasant;  but  in  summer  time,  the  pheasant  is 
dried  in  order  to  avoid  its  smelling.  The  present  of  the  com- 
mon people  is  a  duck;  that  of  a  boy,  ten  pieces  of  dried 
meat.  The  present  of  a  woman  is  entirely  different  from 
that  of  a  man ;  throughout  all  classes,  women  use  the  fruits 
of  the  hovenia  diilcis,  and  of  the  hazel  tree,  dried  meat 
cut  fine,  and  hash  with  spices,  jujube  dates,  and  chestnuts. 
If  in  an  army  out  of  the  towns,  having  no  regular  present, 
a  tassel  from  a  horse's  breast,  an  archer's  armlet,  or  an 
arrow,  one  may  use  for  the  present.  Judging  from  this 
instance,  if  one  cannot  find  the  regular  present  in  some 
locality,  he  may  use  any  seasonable  thing.^ 

These  presents  are  only  to  represent  the  respect  of  the 
guest,  and  the  host  cannot  make  use  of  them  for  his  own 
advantage.  When  the  princes  visit  the  emperor  or  visit 
each  other,  the  presents  of  different  jades  are  immediately 
returned  to  them.  When  the  inferior  calls  on  the  superior, 
the  presents  of  different  animals  are  not  accepted,  or  they 
are  returned  after  the  calling  is  over.  If  men  of  the  same 
rank  call  on  each  other,  the  presents  will  be  returned  to  the 
guest  when  the  host  repays  his  visit,  on  the  same  day.  or 
another  day.  It  is  only  the  prince  who  can  accept  presents 
from  his  officials  without  return,  and  yet  he  may  give  them 
a  banquet.  At  all  the  callings  of  the  same  rank,  as  soon 
as  the  formal  meeting  is  over,  the  guest  is  invited  to  dine 
with  the  host.^ 

So  far  as  the  present  of  introduction  is  necessary  for  the 
first  calling,  no  matter  whether  it  will  be  returned  or  not, 
it  is  a  necessary  expenditure.      It  makes  the  life  of  society 

•/.I  Ki,  hk.   i.   p.    119.  ^  Canon  of  Rites,  ch.  v\\. 


2QO       THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

harmonious  and  respectful,  but  it  cannot  occur  without  the 
use  of  wealth.  As  regards  the  expenditure  of  social  inter- 
course, there  are  many  kinds  of  gifts  to  show  friendship 
according  to  different  occasions.  But  we  need  not  go  into 
them,  because  they  are  not  necessary  expenses. 

In  the  present  day,  the  custom  of  bringing  presents  of 
introduction  for  the  first  visit  has  been  changed  to  other 
forms  or  other  names,  and  has  been  practically  abolished. 
The  only  remaining  trace  of  this  custom  is  in  the  group 
of  pupils.  When  a  student  goes  to  school,  he  must  give 
something,  mostly  in  the  form  of  money,  as  the  present  of 
introduction  to  his  teacher  or  teachers  at  least  the  first  year, 
or  at  the  beginning  of  every  year.  Very  recently,  since 
schools  of  the  modern  type  have  been  established,  this 
custom  is  abolished  in  some  schools,  while  it  remains  in 
others.  The  difference  is  that  when  one  is  considered  as 
a  personal  pupil  to  his  personal  teacher,  he  brings  the  present 
of  introduction ;  but  when  the  institution  takes  the  place  of 
his  teacher,  he  is  under  no  obligation  to  do  so.  China 
as  regards  this  custom  is  thus  in  a  transitional  period. 


PART  III 
PRODUCTION 


BOOK  V.     FACTORS  OF  PRODUCTION 


CHAPTER  XVII 

Three  Factors  of  Production 

For  the  three  factors  of  the  production  of  wealth,  we 
may  select  the  following  passage  from  the  **  Great 
Learning  "  : 

The  superior  man  must  be  careful  about  his  virtue  first.  Hav- 
ing virtue,  there  will  be  the  man.  Having  the  man,  there  will 
be  the  land.  Having  the  land,  there  will  be  the  wealth.  Hav- 
ing the  wealth,  there  will  be  its  use.  Virtue  is  the  root,  and 
wealth  is  only  its  outcome.^ 

This  principle  is  originally  applied  to  the  ruler.  If  a 
ruler  has  virtue,  he  can  rule  the  man,  hold  the  land,  ac- 
cumulate the  wealth,  which  means  here,  capital,  and  have 
many  things  for  use.  But  this  principle  can  be  applied 
to  everybody,  generally.  Take  the  business  man,  for  in- 
stance. He  must  possess  some  virtue  first,  either  physical, 
mental  or  moral — the  word  virtue  is  used  in  its  broad 
sense.  If  competition  were  perfectly  free,  he  would  get 
wealth  in  proportion  to  the  virtue  he  possessed.  If  he 
have  no  virtue  at  all,  or  if  he,  in  some  way,  fail  to  show 
his  virtue  (such  as  being  able  to  work,  and  not  working 
at  all),  he  would  be  an  outcast,  and  he  could  not  get  any 
wealth  by  himself.  In  society,  there  is  no  such  person. 
If  there  is  any,  he  cannot  live  very  long.     The  loafer,  the 

*  Classics,  vol.  i.  p.  375. 

293 


294       T^E,  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

parasite,  and  the  thief,  although  they  are  bad  men,  still  have 
some  particular  virtue  for  getting  wealth.  Therefore,  vir- 
tue is  the  root,  and  wealth  is  only  its  outcome. 

Thus,  according  to  the  "  Great  Learning,"  the  factors  of 
production  are  three.  The  first  is  the  man  who  has  any 
virtue;  the  second  is  the  land,  and  the  third  is  capital.  All 
the  three  factors  belong  to  the  productive  sphere.  Then 
the  word  "  use  "  appears.  With  the  word  "  use,"  consump- 
tion begins. 

The  principle  of  dividing  the  productive  factors  into 
three  is  a  general  economic  principle.  It  can  be  applied 
even  to  a  single  man  in  savage  life.  First,  he  himself 
must  be  a  human  being.  Second,  he  must  live  on  some 
kind  of  land,  and  use  either  fishing  land  or  hunting  land. 
Third,  he  must  have  some  kind  of  capital  to  help  his  fishing 
or  hunting.  In  primitive  life,  the  capital  must  be  sub- 
ordinate to  the  land,  because  he  can  live  without  capital, 
but  he  can  never  live  without  land.  In  social  life, 
land  is  only  a  part  of  capital,  and  man  can  have  many 
other  capital  goods  without  owning  land.  Therefore,  in 
social  life,  there  are  only  two  factors — man  and  capital 
goods.  But,  in  Confucius'  time,  it  was  not  so.  Under 
the  tsing  Hen  system,  every  man  accepted  a  portion  of  land, 
otherwise  he  could  have  no  other  capital  goods,  or  very 
few.  Therefore,  land  was  a  separate  factor,  and  played  the 
most  important  part  among  all  capital  goods.  Moreover,  in 
economic  dynamics,  the  difference  between  land  and  artifi- 
cially made  goods  becomes  prominent,  because  land  is  not 
made  and  not  perishable.  The  "  Great  Learning  "  is  correct 
in  treating  these  three  factors  separately. 

Taking  a  nation  as  an  economic  unit,  this  principle  is 
still  more  true.  The  first  element  of  the  wealth  of  a  nation 
is  man,  the  second  is  land,  and  the  third  is  capital.  Un- 
occupied land  never  can  form  a  nation,  unless  it  belongs 


THREE  FACTORS  OF  PRODUCTION 


295 


to  man.  Those  who  have  merely  perishable  capital  goods 
never  can  form  a  nation,  unless  they  own  some  land.  There 
are  the  stateless  people,  who  have  men,  land,  and  capital, 
but  have  no  nation.  But  there  is  no  nation  that  has  neither 
men,  nor  land,  nor  capital. 

According  to  the  order  of  the  "  Great  Learning,"  we  shall 
discuss  human  beings  first,  and  then  nature.  In  other 
words,  we  shall  make  the  man  precede  the  land.  It  is  true 
that  the  land  is  not  made  by  man,  even  existed  before  man. 
But  it  is  equally  true,  that  the  land  is  useful  to  man 
simply  because  man  comes  into  it,  otherwise  the  whole 
world  is  only  a  wilderness.  Economics  is  not  a  natural  sci- 
ence, but  a  human  science.  We  should  care  for  the  man 
first.  Moreover,  since  human  power  has  been  developed, 
nature  is  subject  to  man.  All  the  natural  forces  are  only 
machines,  helping  to  produce  wealth,  but  the  real  ruler  of 
the  natural  world  is  man.  For  these  reasons,  we  shall  dis- 
cuss man  before  discussing  land. 

This  order  has  produced  a  special  economic  influence 
upon  the  Chinese.  Why  does  China  have  a  large  popula- 
tion? Why  do  the  Chinese  like  to  have  even  more  chil- 
dren than  their  fortune  can  support?  Why  do  Chinese 
scholars  never  think  of  such  a  theory  as  limiting  the  popu- 
lation? It  is  because  the  ''Great  Learning"  states  that 
man  is  the  first  factor  of  production.  According  to  this 
])rinciple,  land  and  capital  both  come  after  man.  This 
])rinciple  is  familiar  to  all  the  Chinese.  They  have 
a  proverb:  "Money  is  made  by  man."  For  their  greet- 
ings, their  first  phrase  is  ''  increasing  sons,"  and  the  second 
is  '*  accumulating  capital."  When  a  new  year  comes,  the 
people  write  or  say,  "  The  man  and  the  capital  both  are 
successful."  They  are  very  glad  to  have  more  members 
in  a  family,  in  a  community,  or  in  the  whole  nation,  not 
only  for  social  pleasure,  but  also  for  economic  production, 


296       THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

because  they  think  that  man  is  the  chief  productive  factor. 
This  is  undoubtedly  due  to  the  influence  of  the  "  Great 
Learning." 

Henry  George  says :  "  It  is  not  the  increase  of  food  that 
has  caused  this  increase  of  men;  but  the  increase  of  men 
that  has  brought  about  the  increase  of  food.  There  is 
more  food,  simply  because  there  are  more  men."  ^  Such 
a  theory  is  the  common  idea  of  the  Chinese.  And  the 
"  Great  Learning,"  in  putting  man  before  land  and  capital, 
has  exactly  the  same  theory. 

In  the  very  beginning  of  the  subject  of -political  economy, 
the  first  part  of  his  General  History  of  Institutes,  Tu  Yu 
(died  1363  A.  K.  or  812  A.  D.)  also  enumerates  the  three 
factors  of  production.     He  says: 

The  grain  is  the  controller  of  the  life  of  man;  the  land  is  the 
ground  upon  which  the  grain  is  grown;  and  the  man  is  the 
object  for  which  the  ruler  administers  his  government.  Stor- 
ing the  grain,  the  national  reserve  will  be  abundant;  dis- 
tinguishing the  land  for  agricultural  purposes,  the  food  will  be 
sufficient;  and  making  an  investigation  of  the  men,  the  service 
of  the  public  labor  will  be  equal.  When  a  ruler  understands 
these  three  things,  it  is  called  a  good  government. 

His  statement  is  from  the  standpoint  of  a  ruler,  but  the 
three  things  are  common  to  all  economic  life.  The  word 
grain  is  the  chief  representative  of  capital,  which  we  shall 
discuss  later;  while  the  words  land  and  man  have  no  need 
of  explanation.  Therefore,  according  to  Tu  Yu  also,  the 
factors  of  production  are  three, — namely,  capital,  land  and 
man.  His  order  is  just  the  reverse  of  that  of  the  "  Great 
Learning."  But  they  are  essentially  th  same,  because  he 
names  them  in  the  order  of  a  climax,  while  the  "  Great 
Learning  "  does  the  opposite. 

'  Progress  and  Poverty,  p.  97. 


CHAPTER  XVIII 
Labor — Population 

i.  importance  of  population 

Since  man  is  the  first  factor  of  production,  we  should 
first  discuss  man  in  the  collective  sense — that  is,  the  popu- 
lation. The  Analects  tells  us,  *'  To  anyone  bearing  the 
tables  of  population,  Confucius  bowed  forward  to  the  cross- 
bar of  his  carriage."  ^  This  shows  that  Confucius  attached 
much  importance  to  the  tables  of  population.  Chu  Hsi  com- 
ments : 

The  action  of  Confucius  was  due  to  the  importance  of  the 
number  of  people.  Man  is  the  most  intelligent  of  all  the  crea- 
tures, and  the  people  are  regarded  as  the  heaven  of  the  em- 
peror. Therefore,  according  to  the  Official  System  of  Cliou, 
when  the  number  of  people  was  presented  to  the  emperor,  he 
accepted  it  kneeling.  How  should  one  whose  position  was 
lower  than  that  of  the  emperor  not  give  respect  to  the  num- 
ber of  population? 

PYom  the  example  of  Confucius,  the  Chinese  always  think 
that  population  is  the  chief  element  of  the  national  assets. 

The  Official  System  of  Chou  has  many  passages  in  regard 
to  population.  We  shall  select  only  a  few  of  them,  .\mong 
the  duties  of  the  vice-president  of  the  department  of  people 
are  these :   he  shall   investigate  the  number  of  males  and 

•  Classics,  vol.  i,  p.  22fi. 

297 


298       THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

females  who  live  in  the  city,  the  suburb  and  the  country,  and 
pay  the  different  kinds  of  taxes.  He  shall  distinguish  the 
noble  and  the  common,  the  old  and  the  young,  and  the  sick 
people.  He  shall  denote  those  who  are  exempted  from  tax- 
ation, and  state  their  rules  of  worship,  of  drink  and  food, 
of  funeral,  etc.  He  shall  send  the  statistical  laws  to  each  of 
the  local  governors,  ordering  him  to  record  the  size  of  the 
population  of  his  province  and  also  the  number  of  their 
horses,  cows,  sheep,  pigs,  dogs,  hens,  carriages,  wagons,  and 
vehicles,  and  to  distinguish  their  various  kinds  of  wealth. 
The  governors  are  required  to  report  quarterly  those  num- 
bers to  this  department  in  order  to  form  the  basis  of  ad- 
ministration. Every  three  years  there  is  a  ''  great  compar- 
ison "  of  all  the  population  and  capital.  During  the  "  great 
comparison  "  this  department  shall  accept  the  statistics  from 
all  the  feudal  states  and  the  crown  provinces.^ 

There  is  the  bureau  of  people  for  registering  the  size  of 
the  population.  All  the  people,  from  the  babe  who  has  teeth 
up  to  the  man,  are  recorded  in  the  census.  This  bureau 
distinguishes  their  residence,  whether  in  the  city,  the  suburb, 
or  the  country,  classifies  them  according  to  sex,  and  adds 
births  and  deducts  deaths  annually.  During  the  "  great 
comparison  "  of  every  three  years  this  bureau  reports  the 
census  to  the  department  of  justice.  In  the  tenth  month 
the  minister  of  justice  presents  the  census  to  the  emperor. 
The  emperor  accepts  it  kneeling,  and  keeps  it  in  the  sacred 
college.  The  imperial  historian,  the  auditor  and  the  prime 
minister,  respectively,  keep  duplicates  in  order  to  help  the 
administration  of  the  emperor.^ 

According  to  the  Official  System  of  Chou,  there  is  a  statis- 
tical comparison  of  the  distribution  of  population  by  sex. 
In  order  to  facilitate  a  study  of  the  statistics  of  population. 

^  Ch.  xi.  '^  Ch.  XXXV. 


LABOR— POPULATION  299 

we  may  present  its  statements  in  the  form  of  a  table,  as 
follows :  ^ 


Province  Male  Female 


Yang  Chow 2  5 

King  Chow I  2 

Yii  Chow 2  3 

Ts'ing  Chow 2  3 

Yen  Chow v 2  3 

Yung  Chow 3  2 

Yu  Chow I  3 

Ki  Chow  5  3 

Ping  Chow 2  3 


However  far  from  the  truth  these  figures  may  be,  the  table 
shows  that  in  the  majority  of  the  provinces  the  number  of 
females  was  greater  than  that  of  males.  It  is  interesting  to 
know  that  a  predominance  of  females  is  not  merely  a  mod- 
ern phenomenon,  but  was  a  phenomenon  of  ancient  times. 
This  is  probably  because  hard  work  and  nervous  strain  have 
chiefly  fallen  upon  men. 

From  the  Official  System  of  Chou  we  see  how  careful  the 
emperor  was  to  learn  the  size  of  the  population.  The  statis- 
tics described  not  only  the  population,  but  also  all  kinds  of 
capital  goods.  In  a  word,  the  governmental  {X)wer  touched 
the  actual  life  of  the  people  in  every  aspect.  It  was,  however, 
not  a  despotism,  but  a  democracy,  because  the  local  officers 
who  exercised  the  governmental  power  were  the  people 
themselves.  In  the  Chou  dynasty,  under  feudalism,  the 
political  division  was  small  and  somewhat  independent,  and 
the  ruler  held  by  hereditary  right,  so  that  the  ruling  class 
and  the  subject  knew  each  other  very  well,  and  administra- 
ti<»ti  was  easv      ^ince  the  Ch'in  dynasty  (331  A.  K.  or  221 

'  Ch.  xxxiii. 


300       THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

B.  C),  however,  under  the  absolute  monarchy,  the  central 
government  has  directly  controlled  the  whole  empire,  and 
the  governors  have  been  only  temporary  officers,  so  that  the 
mandarin  and  the  people  are  strangers,  and  the  admmistra- 
tion  is  necessarily  inefficient.  Therefore  China  could  not 
get  even  an  accurate  census,  because  the  government  has 
kept  aloof  from  the  people/ 

The  importance  of  the  study  of  population  is  summed  up 
by  Hsii  Kan  (died  in  768  A.  K.  or  217  A.  D.)  as  follows: 

A  peaceful  government  is  dependent  upon  the  prosperity  of 
industry,  the  prosperity  of  industry  upon  the  equality  of 
public  labor,  and  the  equality  of  public  labor  upon  the  accur- 
acy of  the  census.  Therefore,  the  accuracy  of  the  census  is 
the  foundation  of  the  administration  of  a  state.  .  .  .  Indeed, 
the  number  of  population  is  the  source  of  everything,  and 
everything  takes  it  as  a  standard.  To  distribute  the  land,  to 
impose  the  taxes,  to  produce  the  products,  to  regulate  sala- 
ries and  wages,  to  do  the  public  work,  to  raise  the  army,  to 
establish  the  national  institutions,  to  adjust  the  household 
economy,  to  observe  the  social  and  moral  laws,  and  to  set  aside 
the  punishment,  all  these  are  the  results  of  a  careful  study  of 
the  number  of  population.^ 

In  short,  population  is  the  basis  of  social,  political,  and  eco- 
nomic adjustments. 

II.    LAW    OF    POPULATION 

I.  Population  and  Land 
In  connection  with  the  policy  of  dealing  with  population, 
the  first  thing  is  the  work  of  settlement.     According  to  the 

1  Cf.  infra. 

^  General  Research  on  Literature  and  Authorities,  written  by  Ma 
Tuan-lin,  a  great  authority  at  the  beginning  of  the  Yiian  dynasty,  pub- 
lished in  1873  (1322  A.  D.),  ch.  xii. 


LABOR— POPULATION 


301 


'^  Royal  Regulations  "  this  is  in  charge  of  the  minister  of 
works.  With  the  various  instruments  he  measures  the  land 
for  the  settlements  of  the  people.  He  distinguishes  the  geo- 
graphical situations,  such  as  the  mountains  and  rivers,  the 
oozy  ground  and  marsh ;  and  he  observes  also  the  temper- 
ature of  the  four  seasons.^  In  short,  the  first  principle  is 
that  the  population  must  be  adjusted  to  the  natural  en- 
vironment. 

Second,  the  density  of  population  must  agree  with  the 
extent  of  the  land.     The  '*  Royal  Regulations  "  says: 

In  settling  the  people,  the  land  is  measured  for  the  formation 
of  cities,  and  then  measured  again  in  smaller  portions  for  the 
allotments  of  the  people.  The  land  and  the  ]jopulation  must 
agree  with  each  other.  There  is  no  land  left  out  of  use,  and 
none  of  the  people  left  to  wander  about  idle.^ 

We  should  not  miss,  however,  the  most  important  point 
which  governs  these  two  principles,  namely,  governmental 
control  of  population.  Since  the  minister  of  works  has 
charge  of  the  settlement  of  the  people,  it  is  he  who  distrib- 
utes the  people  in  accordance  with  the  natural  environment 
and  the  land,  and  not  the  people  themselves.  Although  the 
government  may  simply  follow  what  the  people  want,  it 
takes  very  active  measures.  Therefore,  the  distribution  of 
population  is  a  function  of  the  government. 

The  government,  however,  must  be  in  harmony  with  the 
real  interest  of  the  people,  and  it  should  not  change  their 
adaptation  to  the  environment.     Confucius  says : 

The  sage  kings  showed  their  sense  of  the  state  of  harmony 
in  the  following  way :  they  did  not  make  the  occupants  of  the 
hills  remove  and  live  by  the  streams,  nor  the  occupants  of  the 

'  Li  Ki.  hk.  iii,  p.  228.  ^  Ibid.,  p.  230. 


302        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

islands  remove  and  live  in  the  plains ;  and  thus  the  people 
complained  of  no  hardship.^ 

The  commentator  says  that  the  inhabitants  of  the  hills  are 
interested  in  the  animals;  those  of  the  islands  in  the  fishes 
and  salt;  and  those  of  the  plains  in  the  different  kinds  of 
grain.  The  government  should  let  them  live  respectively  in 
those  localities  to  which  they  have  been  accustomed,  and 
should  not  change  their  occupations  and  make  hardships  for 
them.  If  the  people  lose  their  occupation,  they  will  be  poor ; 
and  if  they  are  poor,  they  will  give  way  to  unbridled  license. 
Therefore,  the  governmental  distribution  of  population  is 
necessarily  harmonious  with  the  people  themselves. 

The  principle  that  the  population  must  agree  with  the  ex- 
tent of  the  land  is  held  by  all  the  scholars.  In  702  (151 
A.  D.),  Tsui  Shih  says  that  the  ancient  sages  distributed  the 
cultivated  land  to  every  man,  and  the  land  was  proportional 
to  the  population.  Now,  in  some  provinces  the  population 
is  dense  and  the  land  is  insufficient  to  support  it,  while  in 
other  provinces  the  population  is  sparse  but  the  land  is  un- 
cultivated, although  it  is  fitted  for  the  growing  of  grain. 
The  old  plan  of  removing  the  poor  people  who  cannot  have 
their  own  occupation  to  those  places  where  the  land  is  plenty 
should  here  be  followed.  This  is  a  policy  for  the  develop- 
ment of  the  land  and  the  help  of  the  people.^  This  theory 
of  Tsui  Shih's  represents  the  common  idea  of  the  Chinese. 

In  the  Southern  Sung  dynasty,  the  capital  was  in  Hang- 
chow,  Chekiang  province,  and  surrounding  the  capital  there 
was  an  over-population.  Therefore,  Yeh  Shih  (i  701 -1774 
A.  K.  or  1 150-1223  A.  D.)  proposed  to  remove  the  surplus 
from  the  over-populated  regions  to  those  that  were  under- 
populated.    He  says : 

^  Li  Ki,  bk  vii,  p.  392.  '  General  Research,  ch.  ii. 


LABOR— POPULA  TION 


303 


The  importance  of  the  administration  of  a  state  Hes  in  the 
possession  of  the  people.  If  the  people  are  many,  the  land  is 
developed,  the  taxes  are  increased,  the  public  laborers  are 
numerous,  and  the  army  is  strong.  .  .  .  Therefore,  when  there 
are  people,  they  must  be  directed  to  the  development  of  the 
land.  If  the  land  is  developed,  the  taxes  are  increased. 
Therefore,  when  they  live  at  home  they  can  do  the  public  labor, 
and  when  they  go  abroad  they  can  become  soldiers.  But  this 
is  not  the  case  now.  They  are  caused  to  live  in  poverty  and 
suffering,  because  they  have  no  land  to  establish  their  own 
occupation.  Those  who  are  dull  and  unskilful  become  loun- 
gers or  dependent  servants,  and  those  who  are  strong  and 
selfish  become  small  dealers  or  robbers.  They  can  roughly  get 
food  for  the  morning  and  evening,  but  cannot  make  a  home. 
Even  during  a  good  year,  when  food  is  cheap,  the  people 
are  afraid  that  they  cannot  get  even  a  pint  or  a  peck  of  it. 
Generally,  those  who  can  pay  the  taxes  and  serve  the  public 
labor  are  less  than  one-third  of  the  whole  population.  The 
landowners  do  not  till  the  land  themselves,  and  the  tillers  own 
no  land.  Therefore,  although  the  population  multiplies  and 
prospers,  it  cannot  be  of  any  use  to  the  state.  .  .  .  Under  such 
circumstances  no  land  can  be  developed  and  no  tax  be  in- 
creased. The  people  simply  gather  together  for  the  getting 
of  food  and  clothes  by  means  of  robbery  and  stealth.  It  makes 
their  habits  covetous,  licentious,  deceitful,  luxurious,  and  with- 
out faithful  and  honest  conduct.  Such  a  people,  however, 
how  can  it  be  thrown  away  like  sjx^iled  fish  or  flesh? 

His  conclusion  is  that  they  should  be  removed  to  the  under- 
populated provinces.  By  this  means  more  land  will  be  de- 
veloperl.  more  taxes  will  be  collected,  and  the  people  can  be 
either  soldiers  when  they  are  abroad,  or  public  laborers  when 
they  are  at  home.  Therefore,  the  wealth  of  a  nation  will 
naturally  grow  up  without  special  effort.  This  he  considers 
a  very  important  part  of  public  policy.' 

'  General  Research,  ch.  xi. 


304       T^HE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

It  should  be  noticed  that  both  Tsui  Shih  and  Yeh  Shih 
are  more  in  favor  of  agriculture  than  of  industry.  Al- 
though the  commercial  and  industrial  cities  can  maintain 
more  population,  they  think  that  the  condition  of  the  poor 
is  very  bad,  because  they  are  merely  dependents.  Hence, 
they  both  use  the  term  '*  own  occupation  "  for  the  object  of 
their  advocacy.  In  order  to  make  the  poor  have  their  own 
occupation  and  become  independent  of  the  rich,  the  only 
thing  the  state  can  do  is  to  give  them  free  land.  Since  the 
land  of  the  cities  where  the  poor  concentrate  is  not  enough, 
they  cannot  have  any  free  land  unless  they  are  removed  to 
the  under-populated  places.  Therefore,  the  theory  of  Tsui 
Shih  and  Yeh  Shih  is  to  enable  the  poor  to  have  an  occupa- 
tion which  can  be  called  their  own.  In  other  words,  they 
want  to  make  the  dependent  laborers  become  independent 
farmers.  If  they  should  see  the  factory  system  of  to-day, 
they  would  advocate  their  plan  still  more  strongly. 

The  above-mentioned  policy  of  moving  the  population  is 
based  on  economic  pirnciples,  and  we  have  entirely  omitted 
those  policies  based  on  military  defense.  But  we  should 
give  a  few  details  about  the  removal  of  population  in  ancient 
times.  In  383  A.  K.  (169  B.  C.)  Chao  Tso  (died  398 
A.  K. )  says  : 

I  have  heard  that,  in  ancient  times,  the  moving  of  population 
from  a  distance  to  the  empty  land  was  like  this :  In  the  first 
place,  the  temperature  of  the  climate  is  examined  into,  the 
taste  of  the  water  tested,  the  fitness  of  the  soil  judged,  and  the 
richness  of  the  plants  looked  into.  Then  the  city  is  established 
and  the  walls  built,  the  streets  fixed  and  the  houses  separated, 
the  roads  of  the  farms  connected  and  the  boundaries  of  the 
field  divided.  Their  houses  are  first  built.  Each  house  has 
one  hall,  two  chambers,  and  the  different  doors.  Within  the 
house  the  articles  and  instruments  are  laid  down.  The  people 
may  have  residence  when  they  come,  and  have  something  for 


LABOR— POPULATION 


30: 


use  when  they  work.  Therefore  the  people  are  encouraged  in 
moving  to  the  new  city,  and  do  not  mind  leaving  their  old 
homes.  Furthermore,  they  are  given  doctors  for  the  cure  of 
their  sickness  and  priests  for  the  exercise  of  their  worship. 
Between  the  two  sexes,  the  people  have  marriage ;  iov  birth 
and  death,  they  help  each  other  ;  for  the  funeral,  they  have  a 
common  cemetery.  Their  plants  are  flourishing,  their  animals 
are  growing,  and  their  houses  are  complete  and  comfortable. 
All  these  make  the  people  feel  their  place  pleasant  and  dispose 
them  to  live  there  permanently.' 

From  such  a  description  v^e  can  see  how  active  the  govern- 
ment was  when  it  moved  the  people.  This  is  a  very  val- 
uable statement,  because  it  gives  some  details  of  the  ancient 
system. 

Since  the  Han  dynasty,  the  policy  of  moving  population 
has  been  carried  into  effect  many  times.  For  an  example 
we  may  select  the  decree  of  Ming  T'ai  Tsu,  which  was 
given  in  192 1  A.  K.  (1370  A.  D.).     It  runs  thus: 

The  five  prefectures,  Suchow.  Sungkiang,  Kiahsing.  Huchow 
and  Hangchow,^  arc  over-populated.  The  people  cannot  have 
land  for  cultivation,  and  usually  pursue  the  secondary  occu- 
pations without  getting  sufticient  food.  In  Linhao,^  my  native 
prefecture,  the  land  is  not  developed,  and  there  is  un- 
opened wealth  in  the  ground.  The  people  of  those  five  pre- 
fectures who  own  no  land  should  be  directed  to  go  there  for 
the  cultivation  of  land.  The  land  which  they  may  cultivate 
.shall  be  given  to  them  for  their  private  property.  They  shall 
be  supplied  with  money,  food,  oxen  and  seed,  and  they  shall 
be  exempted  from  taxation  for  three  years.  The  distribution 
of  land  shall  be  according  to  the  number  of  men  and  their 

'  History  of  Han,  ch.  xlix. 

'  In  the  provinces  of  Kiangsu  and  Chckiang. 

'  The  present  prefecture  of  Funp>'anp;.  Anhui  province. 


3o6       THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

physical  sufficiency,  but  none  shall  be  allowed  to  own   too 
much  land.^ 


This  decree  is  a  general  provision  for  the  removal  of  popu- 
lation. 

This  question  will  arise:  Why  should  the  government 
control  the  distribution  of  population?  Under  the  theory 
of  free  competition,  the  population  would  naturally  distrib- 
ute itself  nicely.  But  there  are  many  circumstances  under 
which  competition  is  not  free,  and  especially  among  poor 
people.  In  the  first  place,  they  will  not  care  to  move,  be- 
cause it  is  human  nature  to  become  attached  to  the  old 
place.  In  the  second  place,  they  do  not  know  how  to  move, 
because  they  do  not  know  what  place  is  good  for  them. 
A  number  of  obstacles,  such  as  the  dififerences  of  dialects, 
customs  and  climates,  and  especially  the  poor  transportation, 
all  prevent  them  from  moving.  In  the  third  place,  they  can- 
not move  themselves  by  their  empty  hands.  Therefore,  the 
moving  of  population  by  the  government  is  a  necessary 
thing.  It  is  a  good  policy,  first,  for  the  poor  themselves, 
and  next,  for  the  nation  as  a  whole.  It  is  good  not  only  for 
their  economic  life,  but  also  for  their  moral  and  social  con- 
ditions, and  many  other  things.  Moreover,  this  policy  is 
not  compulsory,  but  voluntary.  The  government  gives  only 
the  inducement  to  encourage  their  hope,  but  not  force  to 
increase  their  fear.  Therefore,  government  control  of  popu- 
lation is  a  good  thing. 

In  the  present  day,  as  the  population  of  China  is  dense  in 
the  east  and  the  south,  but  sparse  in  the  west  and  the  north, 
she  should  move  the  people  from  the  former  to  the  latter. 
She  should  move  not  only  the  poor,  but  also  the  rich,  be- 

^  Continuation  of  the  General  Research  on  Literature  and  Authorities, 
edited  under  the  imperial  direction  of  Kao  Tsung,  and  published  in 
2335  C1784  A.  D.),  ch.  ii. 


LABOR— POPULATION 


2>07 


cause  the  rich  have  capital.  She  should  move  not  only  the 
manual  laborers,  but  also  the  professional  men,  because  those 
men  have  more  intellectual  power.  Such  a  great  movement 
must  be  carried  on  by  the  state,  in  order  to  make  Manchuria, 
Mongolia,  Chinese  Turkestan  and  Tibet  nearly  equal  to 
China  proper.  Building  railroads,  increasing  political  dis- 
tricts, establishing  public  schools,  distributing  free  land, 
starting  factories,  and  developing  every  kind  of  industry — 
all  of  these  will  encourage  the  immigrants  and  improve  the 
natives.  The  state  should  give  a  number  of  immunities  and 
privileges  to  the  immigrants ;  otherwise  they  will  not  mi- 
grate. Moreover,  she  should  select  the  best  natives  from 
among  those  regions  to  come  to  the  most  important  cities  to 
study  everything,  in  order  to  assimilate  the  Chinese  civiliza- 
tion and  spread  it  among  their  own  people.  In  a  word,  she 
should  unify  the  whole  empire  for  the  realization  of  the 
*'  great  uniformity  "  of  Confucius.  There  is  no  reason  why 
there  should  be  a  distinction  between  China  proper  and  the 
rest  of  the  state.  This  has  become  the  public  opinion  in 
China  to-day. 

2.  Population  and  Food 

The  relation  of  population  and  food  is  indicated  by  Con- 
fucius himself.  He  says:  **  The  important  things  for  a 
government  are  the  people  and  food."  ^  The  commentator 
says  that  the  people  are  important  because  they  are  the  root 
of  a  state,  and  that  the  food  is  important  because  it  is  the 
life  of  the  people.  Therefore,  it  has  become  the  common 
saying  of  the  Chinese:  ''The  state  regards  the  people  as 
its  root,  and  the  people  regard  the  food  as  their  heaven." 

The  relation  between  population  and  food  is  familiar  to 
every  one,  and  especially  since  the  doctrine  of  Malthus  was 

*  Classics,  vol.  i,  p.  351. 


3o8       'THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

set  forth.  According  to  him,  if  the  population  increases  be- 
yond the  proportional  increased  or  acquired  produce  of  the 
country,  the  deaths  will  shortly  exceed  the  births,  unless  an 
emigration  takes  place.  ^  Therefore,  the  increase  in  popu- 
lation is  dependent  upon  the  supply  of  food.  For  the  misery 
of  the  unfortunate  population,  Mencius  gives  a  similar  ex- 
pression. When  he  talked  to  King  Hui  of  Liang,  he  said 
that  the  rulers  of  Ch'in  and  Ch'u  robbed  the  people  of  their 
time,  so  that  they  could  not  plough  and  weed  their  fields. 
The  results  were  that  their  parents  suffered  from  cold  and 
hunger,  and  that  their  brothers,  wives,  and  children  were 
separated  and  scattered  abroad.^  Again,  when  he  talked  to 
Duke  Mo  of  Tsau,  he  said  that,  in  calamitous  years  and 
years  of  famine,  the  old  and  weak  have  been  found  dying 
in  the  ditches  and  water-channels,  and  the  able-bodied  have 
been  scattered  about  to  the  four  quartets.^  Therefore,  ac- 
cording to  Mencius,  when  there  is  an  insufficiency  of  food, 
there  are  two  things  for  the  people — ^emigration  and  death. 
These  are  the  two  positive  checks  to  population. 

For  the  adjustment  between  population  and  food,  Men- 
cius has  the  great  principle  of  political  economy,  shown  in 
the  conservation  of  natural  resources,  the  tsing  Hen  system, 
the  control  of  prices,  etc. ;  that  is,  to  increase  wealth  in  gen- 
eral and  not  to  increase  food  in  particular.  How  can  he 
approve  a  half  measure  which  does  not  increase  the  food  at 
all,  but  simply  distributes  it  in  accordance  with  the  condition 
of  the  people?  The  King  Hui  of  Liang  said  to  Mencius 
that,  when  the  year  was  bad  on  the  inside  of  the  river,  he 
removed  as  many  of  the  people  as  he  could  to  the  east  of 
the  river,  and  conveyed  grain  to  the  country  on  the  inside; 
and  that  when  the  year  was  bad  on  the  east  of  the  river,  he 


'  The  Principle  of  Population,  Ashley's  edition,  pp.  39-40. 
'  Classics,  vol.  ii,  pp.  135-6.  '  Ibid.,  p.  173. 


LABOR— POPULATION  309 

acted  correspondingly.  He  spoke  of  such  measures  with 
great  pride,  but  Mencius  did'  not  give  him  his  approval. 
The  reason  is  that  a  ruler  should  adopt  the  fundamental 
principle  for  the  permanent  increase  of  the  wealth  of  the 
people,  and  should  not  resort  to  the  temporary  removal  of 
either  people  or  food,  as  a  great  measure.^ 

3.  Population  and  Wealth 

The  most  important  support  of  the  population  is  not  land, 
nor  food,  but  wealth.       If  we  have  more  wealth,  we  may 
utilize  the  land  either  more  extensively,  or  more  intensively, 
or  both ;  and  we  may  produce  more  food.     Therefore,  the 
relation  between  population  and  wealth  is  the  fundamental 
thing.    This  principle  was  recognized  by  Confucius.     When 
he  went  to  Wei,  as  we  have  mentioned  above,"  he  gave  his 
impression  from  his  carriage  by  saying,  "  How  numerous 
are  the  people!"     "  Since  they  are  thus  numerous,"  asked. 
Jan  ^'u.  "  what  more  shall  be  done  for  them?"     '*  Enrich 
them,"  was  the  reply.      By  this  answer  Confucius  indicated 
that  wealth  is  most  important  for  the  population.     As  soon 
as  the  i>opulation  is  large,  the  first  thing  is  the  increase  of 
wealth.      .Although  he  did  not  give  the  details  as  regards 
how  the  enrichment  was  to  be  made,  such  a  general  state- 
ment covers  the  whole  economic  field.       Indeed,  whatever 
can  make  the  people  rich  is  the  thing  which  should  be  used 
for  the  suppcjrt  of  population. 

Confucius  appreciated  a  large  population,  because  it  is  an 
indication  of  national  j)ros])erity.  But  he  did  not  think  that 
a  large  population  is  gcnxl  when  'ts  wealth  is  not  e(|ually 
distributed.  He  said  that  we  .should  not  l)e  troubled  lest  the 
j)eople  should  be  few,  but  should  be  troubled  lest  they  should 

'  Classics,  vol.  ii,  pp.    129-1.^2. 
2  Cf.  supra,  pp.  04-95 


3IO       THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

not  have  equality  of  wealth.  If  they  have  equality  of 
wealth,  they  will  have  no  poverty,  and  they  will  be  in  a  con- 
dition of  harmony.  If  they  are  harmonious,  their  number 
will  not  be  few.^  Therefore,  no  matter  whether  the  popu- 
lation is  large  or  small,  wealth  is  most  important  for  avoid- 
ing poverty  and  bringing  harmony.  Since  Confucius  was 
not  a  pure  economist,  but  a  general  reformer,  he  spoke  of 
the  wealth  of  the  people  from  the  distributive,  rather  than 
from  the  productive,  point  of  view.  But  his  view  is  quite 
correct.  For  if  wealth  were  not  equally  distributed,  the 
population  as  a  whole  would  suffer  from  poverty  and  lack 
of  harmony,  even  though  its  production  were  great. 

The  relation  between  population  and  wealth  is  also  pointed 
out  by  the  ''  Miscellaneous  Records."  First,  a  large  terri- 
tory must  be  sufficient  to  support  a  corresponding  popula- 
tion. Second,  the  same  number  of  population  must  have 
the  same  efficiency.  ''  If  there  is  a  large  territory,  and  the 
people  be  not  correspondingly  numerous,  the  superior  man 
regards  it  as  a  shame.  If  another  government  has  the  same 
population  as  his  own,  but  has  a  double  efficiency,  the 
superior  man  regards  it  as  a  shame."  ^  The  word  superior 
man  refers  to  either  the  ruler  or  the  officer.  The  first  de- 
fect comes  from  the  fact  that  he  cannot  make  the  wealth 
sufficient  to  support  a  large  population  in  correspondence 
with  the  extent  of  the  land,  and  this  causes  the  people  to 
desert  his  territory.  Therefore,  even  though  the  land  is 
plentiful,  the  population  is  sparse,  because  population  de- 
pends not  merely  upon  the  land,  but  upon  the  wealth.  In 
the  second  case,  although  he  possesses  the  same  density  of 
population  as  does  his  neighbor,  the  merit  of  his  neighbor 
is  double  his.  This  means  that  he  has  the  same  number  of 
men,  but  accomplishes  only  half  the  work  of  his  neighbor. 

^  Cf.  infra. 

'  Cf.  infra,  p.  165. 


LABOR— POPULATION 


311 


This  points  out  the  difference  between  the  size  of  the  popu- 
lation and  the  efficiency  of  production.  The  mere  posses- 
sion of  a  large  population  is  of  no  use,  unless  it  gives  a  cor- 
responding amount  of  production.  Therefore,  if  the  large 
territory  cannot  support  a  large  population,  and  the  large 
population  cannot  give  a  large  production,  these  two  cases 
are  both  regarded  by  the  superior  man  as  his  shame.  In 
short,  wealth  must  be  in  accordance  with  the  population. 

III.    MIGRATION    OF    POPULATION. 

I.  Freedom  of  Movement. 

The  fundamental  principle  underlying  the  problem  of 
population  is  the  freedom  of  movement.  According  to  the 
principles  of  the  Spring  and  Autumn,  there  is  a  division  of 
territory,  but  there  is  no  division  of  people.  This  means 
that  the  people  may  either  emigrate  or  immigrate,  without 
a  permanent  residence.  Under  such  a  principle  the  people 
have  perfect  freedom  of  movement.  When  the  government 
is  good  the  people  immigrate,  and  when  it  is  bad  they  emi- 
grate. The  number  of  people  is  the  index  of  the  political 
condition  of  the  government  and  the  economic  condition  of 
the  people.  Therefore,  the  merit  of  the  officials  is  tested  by 
the  examination  into  the  size  of  population. 

The  chief  cause  of  emigration  is  economic.  So  long  as 
the  people  are  satisfied  with  their  economic  condition,  they 
will  stay  even  though  there  might  be  some  other  great  evils. 
When  Confucius  passed  by  the  side  of  Tai  Mountain,  and 
saw  a  woman  who  was  wailing  bitterly  by  a  grave,  he  sent 
Tzu-lu  to  question  her.  She  said :  **  Formerly,  my  father- 
in-law  was  killed  here  by  a  tiger.  My  husband  was  also 
killed  by  another;  and  now  my  son  has  died  in  the  same 
way."  Confucius  said  :  *'  Why  do  you  not  leave  the  place?" 
The  answer  was,  **  There  is  no  oppressive  government  here." 
He  then  said  to  his  pupils:  "  Remember  this,  mv  little  chil- 


312        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

dren.  Oppressive  government  is  more  terrible  than  tigers."  ^ 
In  fact,  the  worst  thing  to  drive  the  people  away  is  an  op- 
pressive government,  especially  if  it  touches  the  economic 
life  of  the  people  by  heavy  taxation. 

On  the  other  hand,  the  chief  cause  for  immigration  is  also 
economic.  According  to  Chao  Tso,  people  seeking  their 
economic  interest  anywhere  are  like  water  running  to  a  low 
place,  and  they  do  not  choose  any  particular  region  in  the 
four  corners.^  The  mobility  of  population,  then,  is  like 
water.  If  the  economic  interest  of  one  locality  is  greater 
than  that  of  another,  the  people  will  emigrate  from  the 
latter  to  the  former,  when  there  is  no  obstacle.  Therefore, 
both  emigration  and  immigration  depend  upon  economic 
principles. 

2.  Encouragement  of  hnmigration  in  General 

Since  Confucius  regards  immigration  as  a  sign  of  good 
government,  he  advocates  the  encouragement  of  it.  Con- 
fucius says : 

If  a  ruler  love  propriety,  the  people  will  not  dare  not  to  be 
reverent.  If  he  love  righteousness,  the  people  will  not  dare 
not  to  submit  to  his  example.  If  he  love  good  faith,  the  people 
will  not  dare  not  to  be  sincere.  Now,  when  these  things  ob- 
tain, the  people  from  all  quarters  will  come  to  him,  bearing 
their  children  on  their  backs.  "^ 

He  thus  shows  that  the  immigration  of  the  people  is  the 
result  of  a  good  ruler.  When  the  Duke  of  Yeh  asked  Con- 
fucius about  government,  Confucius  said,  ''  Good  govern- 
ment obtains  when  those  who  are  near  are  made  happy,  and 
those  who  are  far  off  are  attracted  to  come."  *     By  this 

'  Li  Ki,  bk.  ii,  pp.  190-191.  ^History  of  Han,  ch.  xxiv. 

•'  Classics,  vol.  i,  p.  265.  *  Ihid.,  p.  269. 


LABOR— POPULATION 


3U 


statement  he  makes  the  immigratoin  of  the  remote  people 
one  of  the  two  objects  of  good  government.  Again,  he  says  : 
''  If  remoter  people  are  not  submissive,  all  the  influences  of 
civil  culture  and  virtue  are  to  be  cultivated  ig  order  to  attract 
them  to  come;  and  when  they  have  come,  they  must  be 
made  contented  and  tranquil."  ^  Therefore,  to  attract  the 
immigrants  to  come  in  is  the  doctrine  of  Confucius.  This 
means  to  win  the  heart  of  the  people,  and  to  conquer  them 
by  culture  and  virtue. 

Mencius  has  made  a  similar  statement.     When  he  talked 
to  King-  Hsiian  of  Ch'i.  he  said  : 


't> 


Now,  if  your  Majesty  will  institute  a  government  whose  ac- 
tion shall  be  benevolent,  this  will  cause  all  the  officers  in  the 
world  to  wish  to  stand  in  your  Majesty's  court,  and  all  the 
farmers  to  wish  to  plough  in  your  Majesty's  fields,  and  all  the 
merchants,  both  traveling  and  stationary,  to  wish  to  store  their 
goods  in  your  Majesty's  market-places,  and  all  traveling  stran- 
gers to  wish  to  make  their  tours  on  your  Majesty's  roads,  and 
all  throughout  the  world  who  feel  aggrieved  by  their  rulers  to 
wish  to  come  and  conij^lain  to  your  Majesty.^ 

In  fact,  this  is  the  condition  oi  a  royal  government.  It 
makes  the  state  the  center  of  the  immigration  of  the  whole 
world,  and  concpiers  the  whole  world  by  the  institutions  of 
benevolent  government  instead  of  military  force.  This  is 
the  real  meaning  of  the  word  "king"  or  **  royal  "  in  the 
Confucian  sense.  It  is  ninversah'sm  in  contrast  to  im- 
perialism.'" 

I'or  the  encouragement  of  immigration,  exemptions  are 
given  to  the  immigrants.      Vor  example,  we  may  quote  this 

'  Classics,  vol.  i.  pp.  30H-9. 

-  Classics,  v(il.  ii,  pp.   146-7.       The  Ucncvolcnt  government  means  tlie 
tsitifj  ticti  .system;  cf.  infra,  pp.  501-6. 

'  C/.  infra. 


314         THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

passage  from  the  "  Royal  Regulations :"  "  When  the  people 
of  the  noble  families  move  to  the  feudal  states,  they  are  dis- 
charged from  service  for  three  months.  When  the  people 
move  from  the  feudal  states  to  the  noble  families,  they  are 
not  required  to  take  service  for  a  round  year."  ^  For  the 
explanation  of  the  text,  K'ung  Ying-ta  says : 

In  the  feudal  states,  the  land  is  larger,  and  the  public  labor 
requiring  the  people  to  do  service  is  less ;  hence  the  people 
desire  it.  Therefore,  they  are  exempted  from  service  only  for 
three  months.  ...  In  the  estates  of  the  noble  families,  the 
land  is  smaller,  and  the  public  labor  is  more.  In  order  to  make 
the  people  like  it,  they  are  exempted  from  service  for  a  round 
year. 

From  this  passage  we  may  get  two  points.  First,  it  shows 
the  freedom  of  movement.  The  people  may  move  either 
from  the  noble  estates  to  the  feudal  states,  or  vice  versa,  as 
they  please.  Second,  it  shows  the  real  encouragement  of 
immigration,  because  the  immigrants  get  some  material  gain 
from  such  an  exemption. 

The  Confucian  theory  is  exactly  the  opposite  of  actual 
conditions  in  American  and  European  countries.  While  the 
restriction  and  the  exclusion  of  immigrants  in  the  United 
States  is  based  mainly  on  the  economic  struggle — that  is, 
the  laborers  want  to  get  more  money — the  theory  of  Con- 
fucius is  based  on  politics,  ethics  and  religion.  Indeed,  his 
theory  tends  to  make  a  universal  empire,  a  universal  religion, 
a  universal  conception,  a  universal  law,  a  universal  custom, 
a  universal  route,  a  universal  language,  a  universal  calen- 
dar, etc.  These  ideas  can  be  summed  up  in  a  single  word — 
universalism.  Confucius  says :  ''  When  there  is  the  teach- 
ing, there  shall  be  no  distinction  between  the  races,  nor  be- 

1  Li  Ki,  bk.  Hi,  p.  243. 


LABOR— POPULATION 


315 


tween  the  sexes,  nor  between  the  classes."  ^  From  such  a 
point  of  view  it  is  necessary  to  encourage  immigration  in 
order  to  realize  universalism. 

Under  the  influence  of  Confucius,  China  did  realize  uni- 
versalism to  a  great  extent,  although  it  was  imperfect.  Un- 
fortunately, or  fortunately,  the  Opium  War  brought  about 
by  the  English  broke  the  Chinese  peace  and  marked  a  most 
important  epoch  in  Chinese  history.  In  the  past,  China  was 
a  universal  empire,  and  in  the  present,  she  is  only  one  of 
the  nations  of  the  world.  Since  the  Opium  War,  China 
has  been  forced  to  make  unjust  treaties,  and  such  terms  as 
"  extraterritoriality,"  ''  sphere  of  influence,"  ''  shall  China  be 
partitioned,"  ''  open  door,"  have  been  introduced.  When 
foreigners  come  to  China,  they,  although  not  every  one  of 
them,  threaten  the  national  sovereignty,  deprive  the  indi- 
vidual of  liberty,  violate  the  law  of  the  land,  and  do  any- 
thing they  please.^  The  Chinese,  indeed,  sincerely  welcome 
well-behaved  foreigners,  but  there  can  be  none  who  like  such 
men.  The  ideal  of  Confucian  universalism  is  too  advanced ; 
it  does  not  fit  the  world  which  is  still  full  of  injustice. 
Hence,  China  is  forced  back  to  the  lower  stage  of  a  national 
military  state.  We  hope,  however,  that  after  China  shall 
be  strong  enough  to  maintain  peace  against  any  external 
interference,  she  will  by  herself  open  the  door  of  every  part 
to  any  foreigner  under  the  Chinese  jurisdiction,  in  order 
to  realize  Confucian  universalism  and  to  make  a  world  state 
by  means  of  the  national  state. 

'  Cf.  Classics,  vol.  i.  p.  305. 

'  A  single  instance  must  stand  as  a  type  of  multitudinous  insults  and 
oppressions  which  the  Chinese  have  to  endure  in  consequence  of  the 
presence  of  foreigners,  protected  by  extra-territorial  rights.  At  the 
entrance  of  the  Shanghai  Public  Garden  on  the  Bund,  there  is  a  notice 
written  in  Chinese  saying:  "Dogs  and  Chinamen  are  not  allowed  to 
come  in,"  posted  by  order  of  the  Municipal  Council,  which  is  com- 
posed entirely  of  the  representatives  of  foreign  residents. 


3i6         THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

3.  Encouragement  of  Immigration  of  Artisans  and 

Merchants 

.Vlthough  immigration  in  general  has  a  great  effect  upon 
the  economic  life  of  a  nation,  its  influence  is  far  beyond  the 
economic  field.  Hence,  we  now  come  to  immigration  in 
particular — namely,  the  immigration  of  artisans  and  travel- 
ing merchants.  When  Duke  Ai  asked  Confucius  about 
government,  he  gave  him  the  nine  standard  rules.  Among 
these,  the  seventh  is  to  induce  all  classes  of  artisans  to 
come  in,  and  the  eighth  is  concerned  with  the  indulgent 
treatment  of  foreigners.  The  former  mentions  the  word 
artisans  expressly,  while  the  latter  means  foreign  mer- 
chants especially,  although  it  includes  all  foreigners  in 
general. 

The  happy  effects  of  these  two  rules  and  the  details  of 
practising  them  are  given  by  Confucius  as  follows  : 

By  inducing  all  classes  of  artisans  to  come  in,  wealth  is  made 
sufficient.  By  indulgent  treatment  of  foreigners,  the  people  of 
all  quarters  will  come.  ...  By  daily  examinations  and 
monthly  trials,  and  by  making  their  rations  in  accordance  with 
their  labors :  this  is  the  way  to  encourage  all  the  classes  of 
artisans.  To  escort  them  on  their  departure  and  meet  them 
on  their  coming ;  tO'  commend  the  good  among  them,  and  show 
compassion  to  the  incompetent:  this  is  the  way  to  treat  for- 
eigners indulgently. 

In  short,  the  government  should  make  the  state  a  center  of 
industry  and  commerce.  In  order  to  accomplish  this  aim 
it  must  encourage  immigration. 

It  is  very  important  to  know  that,  although  Confucius  is 
in  favor  of  agriculture,  he  leaves  it  out  of  the  nine  standard 
rules,  and  mentions  only  industry  and  commerce.  In  order 
to  bring  out  this  point  we  must  give  the  nine  standard  rules 
fully.     They  are  as  follows:  (i)  the  cultivation  of  the  per- 


LABOR— POPULATION 


317 


sonality  of  the  ruler,  (2)  the  honoring  of  men  of  virtue 
and  talents,  (3)  affection  toward  relatives,  (4)  respect 
toward  the  great  ministers,  (5)  kind  and  considerate 
treatment  of  the  whole  body  of  officials,  (6)  dealing  with 
the  mass  of  the  people  as  children,  (7)  inducing  all 
classes  of  artisans  to  come  in,  (8)  indulgent  treatment  of 
foreigners,  and  (9)  the  kindly  cherishing  of  the  princes  of 
the  feudal  states.  This  is  a  complete  program  of  govern- 
ment. It  begins  with  the  personal  character  of  the  ruler 
himself;  for  such  a  purpose  his  familiar  friends  must  be 
men  of  virtue  and  talents.  Then  he  must  be  affectionate 
to  the  relatives  of  his  family,  and  must  be  good  to  all  the 
officials  and  the  people.  These  six  rules  are  all  applied 
within  the  limit  of  his  own  state.  Now,  for  inter- 
national relations,  they  are  governed  by  the  last  three 
rules.  Excepting  the  last  rule  as  a  diplomatic  principle,  the 
other  two  are  economic  doctrines.  Tt  is  interesting  to 
see  that  Confucius  always  regards  economic  life  not  as  a 
national  phenomenon,  but  an  international  one.  Therefore, 
he  does  not  give  any  economic  principle  until  he  reaches 
the  seventh  and  eighth  rules.  It  is  exactly  for  this  same 
reason  that  the  *'  Great  Learning  "  does  not  touch  any  eco- 
nomic problem  until  under  the  last  chapter,  namely,  the 
equalizing  of  the  whole  world.' 

Now,  we  come  back  to  our  point.  So  far  as  the  nine 
rules  are  concerned,  none  of  them  are  economic  principles 
except  the  seventh  and  the  eighth.  But  these  two  rules  refer 
to  industry  and  commerce  only,  and  agriculture  is  left  out 
entirely.  There  may  be  .several  reasons  for  this.  First, 
agriculture  may  be  included  in  industry  and  commerce,  be- 
cause the  one  is  the  primary  industry  and  the  other  two 
are  secondary.  Second,  for  international  competition,  in- 
dustry  and    commerce   may   be   preferred    to    agriculture. 

•  a.  supra,  pp.    139-142. 


3i8        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

Third,  since  there  is  a  great  immigration  of  ''  all  classes 
of  artisans  "  and  "  the  people  of  all  quarters,"  industry  and 
commerce,  rather  than  agriculture,  are  needed  to  support 
such  a  large  population.  Confucius  may  have  had  all  these 
three  points  in  mind  as  reasons  for  referring  to  industry 
and  commerce  only  and  leaving  agriculture  out. 

There  is  still  another  point.  For  the  effect  of  the  in- 
dulgent treatment  of  foreigners,  Confucius  mentions  only 
that  "the  people  of  all  quarters  will  come;"  but  for  that 
of  inducing  all  classes  of  artisans  to  come  in,  he  points 
out  very  clearly  that  "  the  wealth  is  made  sufficient."  There- 
fore, if  a  state  wants  to  make  wealth  sufficient,  it  must  re- 
sort to  industry.  Industry  alone  can  create  new  wealth, 
while  commerce  simply  creates  new  value  upon  the  existing 
wealth.  From  this  point  of  view,  we  may  say  that  Confu- 
cius knows  the  importance  of  industrial  capital.  All  those 
points  mentioned  above  are  the  economic  principles  of  Con- 
fucius.^ 

Although  the  policy  of  "  inducing  all  classes  of  arti- 
sans to  come  in  "  has  not  been  realized  in  China,  it  has 
been  carried  out  very  successfully  in  England  and  the  United 
States.  During  the  reigns  of  Edward  III  and  of  Elizabeth, 
the  immigration  of  Flemish  workmen  gave  a  great  impetus 
to  English  industry.  It  has  also  contributed  to  the  progress 
of  the  United  States  since  2371  A.  K.  or  1820  A.  D.  Had 
the  immigrants  not  come,  the  United  States  would  not 
have  been  so  prosperous  as  at  present.  Unfortunately,  since 
China  stood  as  an  isolated  country  for  a  long  period,  this 
policy  did  not  have  any  marked  effect  upon  her,  because  the 
workmanship  of  the  surrounding  countries  was  much  lower 
than  that  of  China.  To-day,  by  the  change  of  methods, 
China  really  demands  a  great  number  of  skilled  workmen. 
But   the   political    interference   of    foreign    countries    is    a 

^  Classics,  vol.  i,  pp.  408-411. 


LABOR— POPULATION 


319 


temporary  bar  to  block  this  demand.  We  are  sure,  how- 
ever, that  such  a  bar  cannot  last  very  long,  and  that  the 
principle  of  "  inducing  all  classes  of  artisans  to  come  in  " 
will  have  a  great  triumph  in  the  future. 

4.  Absence  of  Race  Question 

According  to  the  principles  of  the  Spring  and  Autumn,  a 
nation  is  called  either  civilized  or  uncivilized,  not  on  account 
of  blood,  or  of  geography,  but  on  account  of  true  civiliza- 
tion— rites  and  justice.  There  is  no  race  or  state  which  can 
permanently  assume  the  title  of  civilized  nation  unless  its 
actions  be  just.  This  is  the  principle  of  Confucius;  hence, 
the  Chinese  have  no  race  question  at  all. 

The  absence  of  race  questions  in  China  is  due,  however, 
not  only  to  the  teachings  of  Confucius,  but  also  to  geo- 
graphical causes.  As  China  is  located  in  the  greatest  con- 
tinent, together  with  great  mountains  and  rivers,  she  has 
produced  one  great  people,  and  has  had  no  opportunity  for 
a  race  question.  Every  one  can  see  from  Chinese  history 
that  China  has  accepted  any  religion  and  any  race  from  any 
part  of  the  world.  The  so-called  barbarians  were  made  not 
only  common  citizens,  but  also  prominent  officials,  either 
civil  or  military,  and  feudal  princes.  Although  we  have  no 
full  knowledge  about  the  earliest  history,  from  the  Chou 
dynasty  to  the  present  day,  China  has  had  no  race  prejudice 
against  any  other  nationality. 

The  best  example  of  this  was  given  by  the  Tang  dynasty. 
In  1 181  A.  K.  (630  A.  D.),  after  the  Turkish  nation  was 
destroyed,  besides  those  who  ran  to  the  West,  the  number 
who  surrendered  to  the  Tang  dynasty  was  about  one  hun- 
dred thousand.  Tang  T'ai  Tsung  ordered  his  courtiers  to 
debate  on  the  treatment  of  the  Turks.  Some  one  wanted 
to  drive  them  back  to  their  old  place.  But  Wun  \>n-po 
said : 


•  20        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

An  emperor  to  the  myriad  of  things  is  Hke  the  covering  of 
heaven  and  the  containing  of  earth  without  any  exclusion. 
Now,  the  Turks  come  to  us  because  they  are  powerless.  Why 
should  we  refuse  them?  Confucius  said  that  when  there  is 
the  teaching,  there  should  be  no  distinction  between  the  races. 
If  we  relieve  them  from  death,  give  them  economic  occupa- 
tions, and  teach  them  rites  and  justice,  after  several  years  they 
will  be  entirely  our  citizens.  Then  we  can  select  their  chiefs 
to  come  to  the  capital  and  to  become  the  imperial  guards. 
Thus  they  will  fear  our  power  and  love  our  virtue.  What 
will  be  the  danger  in  the  future? 

T'ai  Tsung-  finally  used  this  policy.  He  divided  their  terri- 
tory into  several  provinces,  and  appointed  their  leaders  as 
the  governors.  When  the  Turkish  chiefs  came  to  court, 
they  were  all  appointed  as  military  commanders,  and  occu- 
pied offices  in  the  court.  Above  the  fifth  official  rank,  they 
amounted  to  more  than  one  hundred  persons,  nearly  half 
of  the  number  of  the  Chinese  courtiers.  Hence,  the  Turks 
living  in  the  capital  were  about  ten  thousand  families.^ 
This  shows  how  broad-minded  the  Chinese  people  are.  Even 
when  the  Turks  were  conquered,  they  gave  them  imme- 
diately equality  of  political  rights.  Indeed,  they  put  the  bar- 
barian races  upon  the  same  footing  with  their  own,  and 
assimilated  them. 

We  may  ask  a  question:  Why  did,  and  does,  the  race 
problem  arise  in  the  western  world?  It  seems  that  it  is 
due  to  geographical  smallness.  Since  Europe  is  not  a  real 
continent,  but  only  a  peninsula  of  Asia,  there  are  many 
geographical  subdivisions  and  many  small  islands  and  penin- 
sulas. In  such  an  environment,  European  sectional  feeling 
has  been  fostered.  In  ancient  times,  the  Greeks  and  the 
Romans,  except  Alexander  and  Caesar,  knew  only  the  city- 

'  General  Political  History,  published  in  1635   (1084  A.  D.)   by  Ssu- 
ma  Kuang,  ch.  cxciii. 


LABOR— POPULATION 


321 


State.  Even  in  the  Republic  of  Plato,  his  idea  is  only  a  city- 
state,  and  everything  depends  upon  war.  In  modern  times, 
the  European  race  feeling  is  still  worse.  This  seems  to  be 
the  product  of  the  geographical  situation. 

Now,  we  may  turn  to  the  United  States  of  America.  The 
United  States  was  founded  in  the  new  world  by  virtuous 
men,  and  the  Americans  are  more  broad-minded  than  the 
Europeans.  When  the  nation  grew  a  little  older,  however, 
the  old  good-faith  became  less,  and  the  Chinese  Exclusion 
Act  began  (2433  A.  K.  or  1882  A.  D.).  It  seems  that 
race  prejudice  does  not  come  from  the  American  continent 
itself — such  a  great  new  world  should  not  produce  such  a 
narrow  idea — but  from  the  European  peninsula,  and  espec- 
ially from  the  new  immigrants.  The  Exclusion  Act  is  an 
extremely  bad  example  to  the  world,  and  is  a  serious  blem- 
ish on  the  glorious  American  history.  From  this  point  of 
view,  the  Americans  are  inferior  to  the  Chinese. 

IV.    CONDITIONS  WITH  REFERENCE  TO  POPULATION  IN  CHINA 

The  reasons  for  China's  large  population  may  be  exam- 
ined from  two  viewpoints — the  relation  of  husband  and  wife 
and  the  relation  of  father  and  son.  In  other  words,  we  may 
explain  it  by  the  customs  of  marriage  and  the  doctrine  of 
filial  piety. 

I.  Marriage 
(a)  Importance  of  Marriage 
Tlie  religion  of  Confucius  is  very  different  from  Budd- 
hism and  Catholicism.  It  offers  no  objection  to  marriage. 
Confucius  regards  marriage  not  only  as  human  happiness, 
but  as  human  duty.  Mencius  says  :  *'  That  male  and  female 
should  dwell  together  is  the  greatest  of  human  relations."  ' 
The  aged  widower  and  the  aged  widow  are  classified  as 

*  Classics,  vol.  ii,  p.  346. 


322        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

the  most  unfortunate  people.  If  marriage  is  too  late,  it  is 
regarded  as  unhappiness.  When  Mencius  describes  the 
social  life  of  the  reign  of  T'ai  Wang  (died  in  680  B.  K. 
or  1 23 1  B.  C),  the  grandfather  of  Wen  Wang,  he  says: 
"  At  that  time,  in  the  inside  there  were  no  dissatisfied 
women,  and  in  the  outside  there  were  no  lonesome  men." 
This  means  that  all  married  at  the  proper  time.  Such  a 
theory  has  a  great  influence  on  the  Chinese  population.  In 
China  there  are  practically  no  unmarried  people,  except 
when  under  special  circumstances  they  are  forced  to  leave 
their  families  and  become  Buddhists.  In  fact,  there  are  very 
few  people  who  voluntarily  remain  in  single  life.  Hence, 
the  Chinese  population  is  the  largest  in  the  world. 

(b)  Day  of  Marriage 

Although  Confucius  thinks  that  marriage  is  necessary, 
he  does  not  make  the  day  of  marriage  early.  A  man  takes 
the  first  ceremony  of  marriage — that  is,  the  capping — at 
twenty  years,  and  has  a  wife  at  thirty.  A  woman  takes  the 
first  ceremony — that  is,  binding  up  the  hair  with  the  hair- 
pin— at  fifteen,  and  marries  at  twenty.  If  she  has  not  been 
engaged,  she  will  assume  the  hair-pin  at  twenty,  and  under 
some  circumstances  she  may  marry  at  twenty-three.^  This 
general  rule  is  given  in  the  Record  of  Rites  and  many  other 
books.  It  makes  the  day  of  marriage  so  late  not  as  a  check 
to  the  growth  of  population,  but  as  a  provision  for  physical 
development  and  personal  responsibility.  The  Great  Com- 
mentary of  the  Canon  of  History  says  that  the  woman  may 
marry  at  twenty  years,  because  at  that  time  she  can  under- 
stand all  the  family  duties  and  domestic  science,  otherwise 
she  could  neither  serve  her  parents-in-law,  help  her  husband, 
nor  breed  her  children. 

During  the  Han  dynasty  (491  A.  K.  or  61  B.  C),  Wang 

1  Li  Ki,  bk.  x,  pp.  478-9. 


LABOR— POPULATION 


323 


Chi  proposed  his  theory  of  marriage  to  the  emperor.  He 
thought  that  marriage  is  the  primary  form  of  social  rela- 
tionship and  determines  the  length  of  life.  Tf  the  day  of 
marriage  is  too  early,  the  pair  may  have  children  when  they 
do  not  understand  their  parental  duties.  Therefore,  the 
moral  influence  is  weak,  and  the  people  frequently  die  pre- 
maturely. Moreover,  if  the  expenditure  on  marriage  has 
no  limit,  poor  people,  either  men  or  women,  cannot  marry. 
Therefore,  they  do  not  want  to  raise  children.  ^  This 
theory,  although  it  was  not  carried  out  by  law,  is  a  general 
thought  of  the  Chinese. 

There  are  two  points  in  this  discussion.  One  is  to  im- 
prove the  physical  condition  of  the  people  by  the  postpone- 
ment of  marriage,  in  order  to  increase  the  average  length 
of  life.  The  other  is  to  encourage  the  marriage  of  the  poor, 
in  order  to  increase  the  population.  They  are  not  checks, 
but  aids,  to  population.  In  China,  as  ceremony  is  very 
important  and  social  relation  is  very  close,  marriage  is 
very  expensive  on  both  the  male  and  the  female  side,  even 
among  the  poorest  people.  Therefore,  the  Chinese  always 
try  to  reduce  its  expense  by  reforms  of  custom,  in  order  to 
make  marriage  easy.  In  short,  the  people  generally  think 
that  men  or  women  are  happier  married  than  alone,  and 
that  wealth  will  be  increased  as  the  number  of  men  in- 
creases. Generally  speaking,  the  Chinese  marry  earlier  than 
Confucius  prescribes.^ 

'  History  of  Han,  ch.  Ixxii. 

'  In  Confucius'  time.  \Vu  and  Yiich  were  the  two  rival  states.  When 
Wu  conquered  Yueh  (58  A.  K.  or  494  B.  C),  she  did  not  take  it  for 
her  own  possession.  After  peace  was  made,  the  king  of  Yiieh  estab- 
lished this  policy:  The  young  men  should  not  take  the  old  women,  nor 
the  old  men  the  young  women.  When  a  girl  at  seventeen,  or  1  man  at 
twenty,  had  not  married,  their  parents  were  held  guilty.  When  a 
woman  was  about  to  give  birth  to  a  child,  the  king  should  be  mformed 
b«forehand;  then  she  was  cared  for  by  the  public  physician.     If  the 


324        ^HE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

(c)   Exogamy 

There  are  two  important  customs  which  have  brought 
about  the  large  population  of  China — the  one  is  exogamy 
and  the  other  polygyny.  In  Tso's  Commentary  the  prin- 
ciple of  the  first  institution  is  given  as  follows  :  ''  When  hus- 
band and  wife  are  of  the  same  clan,  their  children  do  not 
prosper  and  multiply."  ^  This  is  a  biological  principle  dis- 
covered eighty-six  years  before  Confucius.  But  this  prin- 
ciple had  been  in  practice,  by  law,  since  the  time  of  the  Duke 
of  Chou  (about  564  B.  K.  or  11 15  B.  C).  The  Record 
of  Rites  says :  ''According  to  the  rule  of  Chou,  there  is  no 
intermarriage  among  the  same  clan,  even  after  a  hundred 
generations."  ^  This  means  that  there  is  no  intermarriage 
of  the  male  lines  of  the  common  remotest  ancestor.  This 
rule  has  been  observed  by  all  the  Chinese.  From  this  prin- 
ciple, on  the  one  hand,  the  Chinese  have  enlarged  their  own 
race;  on  the  other,  they  have  assimilated  all  other  races. 
About  three  thousand  years  ago  different  races  commingled 
in  China,  as  the  Americans  do  now. 

According  to  the  principles  of  the  Spring  and  Autumn,  a 
man  should  not  marry  the  relatives  of  his  mother.  The 
reason  here  is  the  same  as  that  a  man  should  not  marry  the 
daughter  of  the  same  clan.  This  principle  is  also  applied 
to  the  lines  of  the  sisters  of  his  father.  In  the  Law  Code 
of  the  Ts'ing  Dynasty  this  principle  is  applied  to  a  very  great 

child  was  a  boy,  two  pots  of  wine  and  a  dog  were  given ;  if  a  girl,  the 
same  amount  of  wine  and  a  pig.  If  the  mother  gave  birth  to  three 
children,  the  king  supplied  a  nurse;  to  two  children,  he  supplied  food. 
He  took  different  kinds  of  food  with  him  while  traveling,  in  order  to 
feed  chilaren.  These  were  his  policies  for  the  increasing  of  population 
for  military  purposes.  Twenty-one  years  later,  he  succeeded  in  con- 
quering Wu  and  took  it  for  his  own. — Narratives  of  Nations,  bk.  xx. 

^  Classics,  vol.  v,  pt.  i,  p.  187. 

'  Li  Ki,  bk.  xiv,  p.  63. 


LABOR— POPULATION  325 

extent.^  Such  exogamy  has  two  great  reasons:  On  the 
ethical  side,  it  promotes  the  moral  sense  and  prevents  the 
people  from  falling  in  love  with  their  relatives.  On  the 
biological  side,  it  gives  physical  betterment  to  the  couple 
themselves  and  multiplies  their  offspring.  This  is  the  sec- 
ond point  which  has  a  great  effect  upon  the  question  of 
population. 

(d)   Polygyny 

For  the  explanation  of  the  Chinese  population,  the  prac- 
tice of  polygyny  must  also  be  referred  to.  It  was  an  old 
custom,  and  it  was  not  abolished,  but  reformed,  by 
Confucius.  According  to  his  regulation,  the  emperor  may 
have  twelve  females;  the  prince,  nine;  the  great  official, 
three;  the  student,  two;  the  common  people,  only  one. 
Some  authorities  say  that  the  emperor  and  the  prince  both 
may  have  only  nine  females.  Therefore  we  may  take  the 
marriage  of  the  prince  as  the  maximum  example.  When 
the  prince  marries  a  queen  from  a  foreign  nation,  she  takes 
her  younger  sister  and  niece  along  with  her;  then  two  other 
nations  respectively  send  one  companion  to  her,  together 
with  the  companion's  younger  sister  and  niece,  the  whole 
party  being  nine  females. 

The  reason  the  emperor  and  the  prince  may  have  nine 
females  is  that  they  represent  the  sovereignty  of  the  state  and 
their  succession  is  very  important.  If  they  have  no  son 
from  these  nine  females,  however,  they  have  no  reason  to 
take  any  more.  Their  marriage  is  finished  at  this  one  time; 
no  second  marriage  is  allowed.  They  must  marry  girls  out- 
side of  their  own  state.  All  these  regulations  make  them 
more  respectful  and  prevent  them  from  loving  other  women. 
The  younger  sisters  and  nieces,  although  they  may  be  too 
young,  must  accompany  the  cjueen  at  the  time  of  marriage, 

'  Ch.  X. 


326         THE  ECONOMIC  I'RINCIPLES  OF  CONFUCIUS 

but  later  return  to  their  own  states  and  remain  there  until 
the  age  of  twenty.  Why  does  the  queen  or  the  companion 
take  her  younger  sister  and  niece  along?  It  is  that  there 
may  be  no  jealousy;  when  one  of  them  has  a  son,  the  three 
will  have  the  same  pleasure.  Why  does  she  not  take  two 
younger  sisters  instead  of  the  niece?  It  is  because  the 
physical  condition  of  the  niece  may  differ  from  that  of  her 
sister.  Why  does  the  prince  take  girls  from  three  different 
states?  It  is  for  the  diversification  of  the  races,  lest  the 
girls  of  the  same  state  have  the  same  blood  and  give  no  son 
at  all.  In  short,  all  these  details  make  the  emperor  and  the 
prince  sure  to  have  more  sons — a  political  necessity. 

The  reason  the  great  official  may  have  three  females  is 
in  honor  of  the  wise  and  able  man,  and  because  of  the  im- 
portance of  continuing  his  lineage.  Below  the  class  of  great 
official,  the  student  may  have  two  females.  For  the  com- 
mon people  there  is  monogamy;  hence  they  are  called 
"  single  man  and  single  woman." 

Although  Confucius  did  not  abolish  polygyny,  he  did 
reform  it.  At  that  time  the  emperor  regularly  had  one  hun- 
dred and  twenty-one  females;  the  prince  must  have  had 
more  than  nine;  the  great  official  more  than  three;  the  stu- 
dent more  than  two ;  and  the  common  people  more  than  one. 
But  he  reduced  the  number  to  a  certain  limit  and  did  not 
allow  the  emperor  and  the  prince  to  marry  a  second  time. 
By  these  means  he  markedly  checked  the  prevailing  custom. 
During  his  age,  all  the  great  officials,  not  only  the  emperor 
and  the  princes,  held  their  office  by  hereditary  right ;  hence, 
the  succession  of  their  family  was  an  important  thing.  More- 
over, Confucius  himself  thought  that  the  perpetuation  of 
family  is  a  great  duty  of  man.  Therefore,  he  did  not,  and 
could  not,  abolish  polygyny  entirely. 

Confucius'  reason  for  not  abolishing  polygyny — that  is, 
that  a  family  may  perpetuate  its  lineage — applies  especially 


LABOR— POPULATION 


327 


to  the  feudal  stage.  But  we  must  understand  that  Confu- 
cius is  in  favor  of  monogamy.  Ahhough  the  emperor,  the 
prince,  the  great  official,  and  the  student  may  have  more 
than  one  female,  each  of  them  has  only  one  wife.  The 
other  females  are  concubines,  simply  for  the  producing  of 
sons,  and  they  cannot  be  called  wives.  Since  a  son  is  very 
important  for  the  paternal  family,  and  one  wife  may  fail 
to  give  birth  to  a  son,  the  concubine  is  recognized  by  Con- 
fucius. But  Confucius  himself  did  not  have  any  concubine, 
although  he^had  the  right  to  have  two.  In  the  Canon  of 
Changes,  he  says :  ''  When  two  women  live  together,  their 
minds  do  not  move  in  the  same  direction."  Again  he  says: 
"  When  two  women  live  together,  their  minds  do  not 
agree  with  each  other."  ^  From  his  own  practice  and  from 
these  two  passages,  we  may  be  sure  that  he  is  in  favor  of 
monogamy.  Indeed,  polygyny  is  for  the  Disorderly  Stage, 
and  monogamy  for  the  Advancing  Peace  Stage. 

As  a  matter  of  fact,  the  Chinese  do  not  follow  the  regu- 
lations of  Confucius.  They  may  have  as  many  concubines 
as  their  condition  allows,  although  there  must  be  a  natural 
limit.  This  is  an  evil  custom,  indeed,  but  it  still  has  some 
merit.  From  the  moral  and  social  point  of  view,  since  a 
man  may  have  concubines  openly,  he  will  not  resort  to  pros 
titution  or  illegitimate  intercourse.  From  the  economic 
point  of  view,  it  may  relieve  some  poor  girls  from  deep 
poverty.  But  most  important  of  all  is  that  the  practice  of 
polygyny  has  increased  the  population  to  a  great  extent. 
This  is  the  reason  why  we  discuss  it  here.  The  Chinese, 
however,  are  likely  to  change  polygyny  into  monogamy  be- 
fore very  long. 

'   Yi  King.  pp.  243,  253. 


328        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

2.  Doctrine  of  Filial  Piety 
(a)  Perpetuation  of  the  Family 

In  the  world  there  is  no  nation  that  has  perpetuated  its 
people  as  a  particular  race  so  long  as  has  China.  It  is  the 
contribution  of  Confucius,  because  he  preaches  the  doctrine 
of  filial  piety.  According  to  this  doctrine  the  perpetuation 
of  the  family  is  the  chief  duty  of  man.  Confucius  says: 
"  Since  the  parents  have  given  birth  to  a  son,  it  is  the  per- 
petuation of  the  human  race,  and  there  is  nothing  greater 
than  this."  ^  Hence,  a  son  must  continue  the  line  of  his 
parents.  Mencius  says  :  ''  There  are  three  things  which  are 
unfilial;  but  to  have  no  posterity  is  the  greatest  of  them."  ^ 
The  other  two  unfilial  things  are,  according  to  Chao  Ch'i 
(died  752  A.  K.  or  201  A.  D.),  the  commentator,  first,  by 
a  flattering  assent  to  encourage  parents  in  unrighteousness ; 
and  second,  not  to  succor  their  poverty  and  old  age  by 
engaging  in  official  service.  To  be  without  posterity  is  a 
fault  greater  than  these,  because  it  is  an  offense  against  the. 
whole  line  of  ancestors  and  terminates  the  sacrifices  to  them. 

In  short,  by  the  statement  of  Confucius,  to  give  birth  to 
a  son  is  the  greatest  contribution  of  the  parents  to  society 
as  a  whole ;  and  by  that  of  Mencius,  to  have  no  posterity  is 
the  greatest  offense  of  a  son  against  all  his  ancestors. 
Therefore,  the  perpetuation  of  the  family  is  the  chief  duty 
of  both  father  and  son. 

Since  we  have  already  discussed  the  doctrine  of  filial  piety 
(and  the  custom  of  ancestor-worship)  from  the  religious 
and  ethical  point  of  view,  we  shall  now  look  at  it  only  from 
its  influence  on  the  Chinese  population.  Under  the  influence 
of  Confucius,  every  one  wants  to  marry  in  order  to  have 
sons.     The  parents  can  never  be  satisfied  until  they  finish 

^  Sacred  Books,  vol.  iii,  p.  479. 
'  Classics,  vol.  ii,  p.  313. 


LABOR— POPULATION 


329 


for  their  children  the  proceeding  of  marriage,  which  they 
regard  as  an  obligation.  Among  very  poor  families,  it  is 
even  the  social  duty  of  their  friends  to  help  them  to  marry. 
If  one  has  no  son,  he  may  take  a  concubine  in  the  hope 
of  having  posterity,  and  his  wife  almost  always  agrees  to  it. 
If  he  has  no  prospect  of  having  a  son,  he  may  adopt  a  son, 
either  from  his  own  clan  or  from  another.  Sometimes  even, 
when  he  dies  prematurely,  not  having  married  at  all,  his 
family  adopts  a  son  for  him,  in  order  to  continue  his  lineage. 

(b)   Return  to  the  Parents 

While  the  perpetuation  of  the  family  is  the  strongest 
motive  impelling  the  Chinese  to  have  sons,  another  stimulus 
is  the  expected  return  to  the  parents.  Since  we  have  al- 
ready discussed  this  principle,  there  is  no  need  of  any  fur- 
ther explanation.  We  now  simply  point  out  that  it  has  a 
great  influence  upon  the  Chinese  population.  As  we  have 
seen,  China  makes  the  support  of  parents  a  positive  law. 
The  parents  usually  derive  their  support  from  their  sons. 
Although  the  sons  are  not  necessarily  dutiful  enough  to 
support  their  parents,  the  custom  has  behind  it  a  very  strong 
public  opinion ;  hence,  the  return  to  the  parents  is  a  general 
expectation.  Therefore,  when  one  has  no  son,  he  regards  it 
as  the  greatest  of  misfortunes.  First,  he  is  afraid  that  his 
lineage  will  be  extinguished.  Second,  he  has  no  hope  of 
being  supported  in  his  old  age.  Third,  even  when  he  has 
no  need  of  support,  he  needs  a  son  as  an  object  of  pleasure, 
a  performer  of  social  and  religious  duties,  etc.  In  fact,  de- 
sire for  sons  among  the  Chinese  is  stronger  than  among 
any  other  people. 

The  return  to  the  parents  may  be  divitled  into  two  cate- 
gories. One  is  the  material  return.  Since  the  support  of 
parents  is  an  obligation  of  the  sons,  the  parents  claim  the 
duties  from  their  sons  as  creditors  from  debtors,     flence. 


330 


THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 


the  bringing-np  of  children  may  be  regarded  as  a  provision 
for  the  later  part  of  life.  Indeed,  it  is  equivalent  to  an  in- 
surance policy,  providing  a  sickness  benefit,  unemployment 
benefit,  old-age  benefit,  funeral  benefit,  etc. 

The  other  is  the  immaterial  return,  and  it  may  be  divided 
into  three  things.  First,  the  son  may  return  honor  to  his 
parents  during  their  life.  Ts'eng  Tzu  says :  ''  He  whom 
the  superior  man  pronounces  filial  is  he  whom  all  the  people 
of  his  state  praise,  saying  with  admiration,  '  Happy  are  the 
parents  who  have  such  a  son  as  this !' — that  indeed  is  what 
can  be  called  being  filial."  '  Second,  he  may  return  honor 
to  them  after  their  death.  Confucius  says  that  to  make 
our  name  famous  in  future  ages,  and  thereby  glorify  our 
parents,  is  the  end  of  filial  piety. ^  The  "  Pattern  of  the 
Family  "  says : 

Although  his  parents  be  dead,  when  a  son  is  inclined  to  do 
what  is  good,  he  should  think  that  he  will  thereby  transmit  the 
good  name  of  his  parents,  and  carry  his  wish  into  eflFect. 
When  he  is  inclined  to  do  what  is  not  good,  he  should  think 
that  he  will  thereby  bring  disgrace  on  the  name  of  his  parents, 
and  in  no  wise  carry  his  wish  into  effect." 

Since  Confucius  regards  the  name  as  a  very  important  thing, 
the  parents  have  expectations  from  the  glory  of  their  sons. 
In  China,  whatever  official  title  a  son  may  get  may  be  trans- 
mitted to  his  parents  either  during  their  life  or  after  their 
death,  and  also  to  his  grandparents  and  great-grandparents. 
Third,  the  son  may  return  homage  to  his  parents  in  the  form 
of  ancestor-worship.  Thus  we  can  see  how  the  principle  of 
the  returns  to  parents  helps  to  bring  about  China's  great 
population. 

'  Li  Ki,  bk.  xxi,  pp.  226-7.  ^  See  supra,  p.  1 12. 

'  Li  Ki,  bk.  x,  p.  457, 


LABOR— POPULATION 


33^ 


V.    HISTORICAL    STUDY    OF    POPULATION 

The  word  population  is  expressed  in  the  Chinese  language 
by  two  words,  "  door  "  and  "  mouth."  "  Door  "  means  a 
family,  and  ''  mouth  "  a  person.  But  we  do  not  like  to 
translate  the  word  ''door  "  into  the  word  family,  because 
China  had  the  "door  tax,"  which  made  the  people  conceal 
their  families,  and  the  word  "door  "  cannot  represent  the 
word  family.  For  the  same  reason,  the  people  concealed 
their  number  in  order  to  escape  the  "  mouth  tax,"  and  so 
the  word  "  mouth  "  cannot  represent  the  word  person.  We 
shall  use  these  original  words,  "door  "  and  "  mouth,"  to 
stand  as  a  picture  of  the  historical  Chinese  population,  and 
give  our  population  statistics  in  those  terms.  Although  it 
is  too  far  from  the  real  figures,  it  is  the  only  way  by  which 
we  can  get  any  idea  about  the  history  of  Chinese  population. 
Therefore,  we  shall  give  the  most  important  figures,  whether 
the  largest  or  the  smallest,  of  the  most  important  periods,  in 
the  form  of  a  table.  From  the  table  we  can  judge  some- 
thing not  only  about  the  real  population,  but  also  about  the 
economic,  social  and  political  conditions. 


zz^ 


THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 


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LABOR— POPULATION 


333 


The  above  table  shows  the  size  of  the  population  of  China 
proper  throughout  all  the  ages,  and  is  based  mostly  upon 
the  Three  General  Researches.^  Their  materials  came  from 
history,  and  those  of  history  came  from  the  official  reports. 
All  the  figures  of  this  table  are  quoted  from  the  Three  Gen- 
eral Researches  except  those  for  the  years  219  A.  K.  and 
352  A.  K.,  which  are  estimates.  At  the  end  of  the  Yiian 
dynasty,  about  19 18  A.  K.,  although  it  is  an  important 
period,  we  cannot  make  an  estimate,  because  there  is  no 
basis.  All  the  dates  of  this  table  are  also  quoted  from  the 
Three  General  Researches',  but  in  a  few  cases  dates  are  un- 
certain, and  we  have  inserted  the  word  "  about  "  to  indicate 
that  the  dates  may  not  be  exact.  All  the  figures  and  dates 
of  this  table  are  based  on  a  very  careful  study. 

I.  Inaccuracy  of  this  Table 

The  statements  of  this  table  are  very  far  from  accurate, 
(i)  In  the  reigns  of  Hsia  Yii,  of  Chou  Ch'cng  Wang  and 
of  Chou  Chuang  Wang,  there  are  no  real  records  in  regard 
to  the  population,  but  only  the  estimates  of  Huang-fu  Mi 
(766-833  A.  K.  or  215-282  A.  D.),  a  great  authority. 

(2)  The  most  trustworthy  figures  are  those  of  the  Han 
dynasty. 

(3)  Among  the  Three  Kingdoms,  about  814,  the  Wei 
kingdom  and  the  Shu  kingdom  both  had  only  943,423  doors 
and  5,372,891  mouths.  After  Tsin  Wu  Ti  succeeded  to  the 
Wei  kingdom,  which  included  the  Shu  kingdom,  he  con- 
quered the  Wu  kingdom  in  831  and  took  530,000  doors  and 
2,300,000  mouths  by  his  conquest.  The  total  number  of  these 
two  sets  of  figures  in  831  was  1.473.423  doors  and  7.672.891 

*  They  are  (i)  the  General  Research  on  Literature  and  Authorities, 
chs.  x-xi ;  (2)  the  Continuation  of  the  General  Research  on  Literature 
and  Authorities,  chs.  xii-xiii ;  and  (3)  the  General  Research  on  Liter- 
ature and  Authorities  of  the  Present  Dynasty,  ch.  iii. 


334        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

mouths.  Why  should  Tsin  Wu  Ti  in  the  same  year  (831) 
have  2,459,804  doors  and  16,163,863  mouths?  Although 
from  814  to  831  the  number  of  the  first  would  increase,  it 
could  hardly  have  doubled  in  the  short  space  of  seventeen 
years.  It  seems  that  the  historian's  mistake  arose  from 
taking  the  number  of  the  population  toward  the  close  of 
Wu  Ti's  reign  (about  840)  and  putting  it  in  the  year  when 
he  had  just  reunited  the  whole  empire  (831). 

(4)  The  Tang  dynasty  began  in  1169,  and  had  lasted 
137  years  in  1305.  At  that  time  the  people  enjoyed  a  long 
golden  age,  and  the  population  must  have  increased.  Tu  Yu 
says :  "  It  should  at  least  have  thirteen  or  fourteen  millions 
of  doors."  But,  according  to  this  table,  in  1305  it  had  only 
9,619,254  doors. 

(5)  In  the  Former  Han  dynasty,  the  average  number  of 
mouths  for  ten  doors  was  more  than  48 ;  in  the  Latter  Han 
dynasty  it  was  52  mouths,  and  in  the  Tang  dynasty,  58 
mouths.  But  in  the  Sung  dynasty  it  was  only  21  mouths. 
There  is  no  reason  why  one  family  should  have  only  two 
persons.  For  instance,  in  1774,  the  12,670,801  doors  of  the 
Sung  dynasty  had  only  28,320,085  mouths.  But  in  1758, 
the  7,684,438  doors  of  the  Kin  dynasty  had  45,816,079 
mouths.  There  is  no  reason  why  the  Sung  dynasty,  which 
had  doors  nearly  double  those  of  the  Kin  dynasty,  should 
have  about  half  as  many  mouths  as  the  latter.  According 
to  this  table,  each  door  of  Kin  had  more  than  six  mouths. 
If  we  should  take  a  rate  as  low  as  five  mouths  to  each  door. 
Sung  should  have  63,354,005  mouths.  Adding  the  mouths 
of  Kin  on  this  reasonable  estimate,  China  should  have  had 
at  least  109,170,084  mouths  in  1758. 

(6)  The  census  of  the  Ming  dynasty  is  still  worse.  We 
select  the  figures  only  about  its  beginning  and  its  end.  In 
1932  the  revolutionary  war  had  only  recently  ended,  and 
in  1954  the  civil  war  was  just  finished.     If  the  population 


LABOR— POPULATION 


335 


at  those  periods  had  grown  as  large  as  this  table  shows, 
why  should  it  become  smaller  in  the  later  peaceful  time? 
In  fact,  China  was  never  able  to  get  a  census  that  was  even 
approximately  accurate  until  2300. 

2.   Causes  of  the  Inaeeuracy 

Why  did  China  not  have  an  accurate  census?  There  is 
a  sound  reason  for  it.  Because  China  had  a  monarchical 
government  it  did  not  touch  the  people  closely,  and  because 
the  people  did  not  directly  enjoy  political  interest  very  much 
they  tried  to  escape  from  the  taxes.  Since  the  ''door  tax  " 
and  the  "  mouth  tax  "  depended  entirely  upon  the  number 
of  the  population,  the  people  had  to  conceal  their  number  in 
order  to  evade  the  taxes ;  hence.  n(;ne  understood  the  real 
population.  In  the  Han  dynasty  the  two  taxes  were  very 
light,  so  that  the  numbers  of  the  population  were  more  trust- 
worthy. After  that  time,  the  two  taxes  were  higher,  but  the 
number  of  the  population  was  lower.  Why  did  the  gov- 
ernment, however,  not  exercise  its  force  in  order  to  get  the 
full  amount  of  taxes?  It  is  because  the  government  was 
under  the  Confucian  inthience.  The  Confucian  doctrines, 
such  as  "  Love  the  people,"  "  light  tax,"  and  **  benevolent 
government,"  were  familiar  to  all  the  rulers.  Hence,  the 
Chinese  government  generally  never  dared  to  exercise  a  des- 
potic force  directly  upon  the  people.  If  the  people  wanted 
to  conceal  anything,  the  government  could  not  find  it  out. 
because  it  did  not  control  the  actual  life  of  the  people. 
Moreover,  the  mandarin  would  have  some  deep  ideas.  For 
example,  when  Ma  Jen-wang  '  made  his  census  he  finished 
it  in  less  than  twenty  days.  Some  one  was  surprised.  an(l 
questioned  him.  He  said:  "  If  the  numbers  of  population 
were  taken  inclusively  without  remainder,  it  will  induce  the 

'  He  was  made  minister  of  the  Liao  dynasty  in  1664  (1113  A.  D.). 


^36        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

trouble  of  a  heavy  tax  in  the  future.  Generally,  taking  six 
or  seven  out  of  ten  is  quite  enough."  But  we  must  not 
make  such  a  mistake  as  to  think  that  the  Confucians  do  not 
care  to  have  an  accurate  census.  Indeed,  the  Confucians 
regard  the  population  as  the  most  important  thing  and  value 
highly  an  accurate  census.  A  light  tax  is  one  thing,  but 
an  accurate  census  is  another.  Yet,  on  account  of  the  door 
tax  and  the  mouth  tax,  China  could  not  get  a  good  census. 

3.  Significance  of  this  Table 

Although  this  table  is  inaccurate,  it  is  still  valuable.  If 
one  could  completely  understand  these  figures  he  would  be 
able  to  master  the  whole  Chinese  history.  The  really  hered- 
itary monarchical  empire  was  founded  by  Hsia  Yii.  At 
that  time  the  population  was  more  than  thirteen  millions. 
The  beginning  of  the  Chou  dynasty  was  a  golden  age.  As 
China  in  about  564  B.  K.  had  more  than  thirteen  millions 
of  population,  she  should  possess  much  more  two  hundred 
years  later,  because  this  peaceful  period  lasted  for  about 
three  hundred  years.  We  may  think  that  this  period  fos- 
tered the  most  wonderful  civilization  of  the  period  of  Spring 
and  Autumn  (171  B.  K.-71  A.  K.)  and  that  of  Warring 
States  (149-331  A.  K.). 

As  a  destroyer  of  population,  war  is  the  worst  influence. 
According  to  this  table,  in  the  beginning  of  the  Han  dy- 
nasty the  population  lost  five-sixths;  in  the  beginning  of 
the  Latter  Han  dynasty,  about  two-thirds;  in  the  Three 
Kingdoms,  about  six-sevenths ;  in  the  latter  part  of  the 
Southern  and  Northern  Dynasties,  about  three-fourths;  in 
the  beginning  of  the  Tang  dynasty,  about  two-thirds;  in 
the  reign  of  Tang  Su  Tsung,  within  the  period  of  only  five 
years,  it  lost  over  two-thirds:  in  the  beginning  of  the  Sung 
dynasty,  about  two-fifths ;  in  the  beginning  of  the  Southern 
Sung  dynasty,  more  than  half ;  in  the  beginning  of  the  Yiian 


LABOR— POPULATION 


\37 


dynasty,  measured  by  the  number  of  the  'Moors,"  it  lost 
over  one-third;  in  the  beginning  of  the  present  dynasty  it 
lost  about  three-fifths.  From  this  point  of  view,  the  revo- 
lutionary war  was  a  great  calamity.  It  not  only  destroyed 
the  population,  but  retarded  civilization. 

In  Chinese  history,  when  her  civilization  advanced  to  a 
high  level,  it  was  dragged  down  by  warfare.  When,  after 
a  long  time,  it  rose  again,  it  fell  again.  It  is  no  wonder 
that  the  Chinese  progressed  so  slowly.  But,  through  mod- 
ern inventions,  such  as  the  railroad,  telegraph,  telephone, 
etc.,  which  will  enable  her  to  change  absolute  monarchy  into 
a  really  constitutional  monarchy,  China  may  avoid  such  in- 
ternal wars  as  have  troubled  her  in  the  past,  and  will  per- 
mit her  civilization  continuously  to  progress.  Moreover,  as 
China  can  never  be  conquered  by  any  external  power,  she 
will  be  able  to  change  a  constitutional  monarchy  into  a  real 
republic,  and  she  might  form  a  world-state  with  the  lead- 
ing nations,  and  might  realize  the  Great  Similarity  of  Con- 
fucius. Then  the  whole  population  of  the  world  will  enjoy 
the  Stage  of  Extreme  Peace  without  any  war. 

It  should  be  noticed  that  the  magnitude  of  the  figures  in 
this  table  does  not  necessarily  reflect  upon  the  reigning 
rulers.  Generally,  the  ruler  of  the  beginning  of  a  dynasty 
was  an  able  or  good  man,  and  that  of  its  decay  a  weak  or 
bad  man.  But  at  the  beginning  of  a  dynasty  the  popula- 
tion would  be  small,  and  about  the  time  of  its  decay  it  would 
be  large;  for  in  the  former  case  it  would  suffer  from  the 
hard  times  of  the  past,  and  in  the  latter  case  it  would  enjoy 
the  good  fortune  of  the  past.  This  table  indicates  only  the 
facts  of  history  and  does  not  show  exactly  what  the  gov- 
ernments were  during  the  given  years.  As  a  rule,  how- 
ever, a  large  population  would  be  produced  under  a  good 
government,  but  such  a  result  would  of  course  follow  only 
after  a  considerable  period. 


338 


THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 


The  most  wonderful  increase  of  population  was  during 
the  Sui  dynasty.  In  the  first  year  of  Sui  Wen  Ti's  reign 
(1132  A.  K.),  he  had  only  9,009,604  mouths.  In  his  ninth 
year  (1140  A.  K.),  he  took  2,000,000  mouths  from  the 
Southern  Chen  dynasty.  The  total  number  was  1 1 ,009,604 
mouths.  But  in  11 57  A.  K.,  when  only  twenty-five  years 
had  passed,  his  son  had  46,019,956  mouths.  The  popula- 
tion increased  over  fourfold  within  twenty-five  years.  It 
seems  that  the  figures  for  population  increased  not  on  ac- 
count of  the  birth-rate  only,  but  mainly  on  account  of  the 
system  of  taxation.  After  the  great  statesman  of  Sui, 
named  Kao  Kung,  established  a  system  of  taxation  in  favor 
of  the  free  citizens  by  making  the  taxes  light,  the  people  did 
not  like  to  be  the  dependents  of  the  higher  class  for  the  pur- 
pose of  evading  taxes;  hence  the  number  of  citizens  who 
paid  taxes  increased  rapidly.  Indeed,  the  Sui  dynasty  was 
the  richest  one  in  Chinese  financial  history. 

According  to  this  table,  before  2300  the  population  never 
numbered  over  one  hundred  millions.  Why  should  the 
population  figures  of  the  present  dynasty  be  much  larger 
than  those  of  all  the  past  dynasties?  It  is  because  the 
present  dynasty  has  neither  "door  tax  "  nor  "  mouth  tax." 
In  2212  A.  K.  the  number  was  21,068,609,  and  in  2262,  24,- 
621,334.  Throughout  fifty  peaceful  years  the  population 
increased  only  3,552,725.  But  in  2300  A.  K.  the  number 
was  177,495,039.  It  increased  more  than  seven  times  in 
the  thirty-eight  years.  Why  should  the  figures  increase  so 
rapidly  as  this?  It  was  because  Sheng  Tsu  had  abolished 
these  two  taxes  in  2263.     His  decree  is  as  follows : 

The  empire  has  been  peaceful  for  a  long  time,  so  that  the 
population  increases  numerously.  If  I  increase  the  amount  of 
taxes  according  to  the  present  number  of  population,  it  is  not 
right;  for,  although  the  population  becomes  larger,  the  acre- 


LABOR— POPULATION 


339 


age  of  land  does  not  become  wider.^  .  .  .  To-day  the  public 
treasury  is  very  rich.  Although  I  have  frequently  given  the 
exemption,  which  amounted  to  ten  millions,  for  several  years, 
the  national  expenditure  has  never  any  trouble  of  insufficiency. 
Therefore,  I  should  take  the  number  of  people  from  the  pres- 
ent tax-roll  as  a  fixed  number  to  be  taxed,  and  the  increased 
population  of  the  future  shall  be  exempted  from  any  additional 
tax.     What  I  want  is  merely  the  report  of  the  true  numbers. 

Then  the  legislature  established  the  law  that  the  amount  of 
poll  tax  is  permanently  fixed  according  to  the  number  of  the 
tax-roll  in  the  year  2262,  and  that  the  new  increased  num- 
ber, which  is  called  "  the  increasing  population  of  the  pros- 
perous age,"  shall  never  be  taxed. 

This  marks  a  new  epoch  in  Chinese  economic  history. 
The  population  began  to  show  its  approximate  number  in 
2300  A.  K.  Through  thirty- four  years,  to  2334  A.  K.,  the 
population  increased  more  than  half.  Through  fifty-nine 
years,  to  2393  A.  K.,  it  increased  less  than  half.  During 
the  T'ai-p'ing  rebellion  (2401-241 7  A.  K.)  it  may  have  lost 
a  hundred  and  fifty  millions.  Although  the  census  of  the 
present  dynasty  is  still  not  very  accurate,  it  is  near  the  truth. 
In  a  few  years,  when  China  shall  have  a  regular  parliament, 
accurate  statistics  of  population  should  be  available. 

'  This  suggests  the  Malthusian  doctrine. 


CHAPTER  XIX 

Nature  and  Capital 

I.    NATURE 

I .  The  Five  Elements 

Since  land  is  only  one  part  of  nature,  we  should  first 
consider  all  the  elements  of  nature.  For  this  reason  we 
may  take  up  the  five  elements  as  presenting  an  exhaustive 
classification  of  natural  forces.  Although  the  five  elements 
are  the  basis  of  Chinese  philosophy,  we  are  concerned  here 
with  their  economic  aspects  only. 

The  "  Great  Model  "  puts  the  five  elements  in  the  first 
of  the  nine  categories.  The  first  element  is  water ;  the  sec- 
ond, fire;  the  third,  wood;  the  fourth,  metal;  the  fifth,  earth. 
The  five  elements  in  the  Chinese  language  are  called  "  the 
five  movements,"  because  they  move  and  revolve  through- 
out heaven  and  earth  without  ceasing.  In  6  A.  K.  (546 
B.  C),  Tzu-han,  prime  minister  of  Sung,  says:  "Heaven 
has  produced  the  five  elements  which  supply  men's  require- 
ments, and  the  people  use  them  all.  Not  one  of  them  can 
be  dispensed  with."  '  The  Chinese  regard  all  the  five  ele- 
ments as  the  natural  forces  upon  which  human  life  depends. 

After  having  given  the  names  of  the  five  elements,  the 
"  Great  Model  "  describes  their  nature.  "  The  nature  of 
water  is  to  soak  and  descend ;  of  fire,  to  blaze  and  ascend ; 
of  wood,  to  be  crooked  and  to  be  straight;  of  metal,  to 
obey  and  to  change;  while  the  virtue  of  earth  is  seen  in  seed- 

^  Classics,  vol.  V,  pt.  ii,  p.  534. 
340 


NATURE  AND  CAPITAL 


341 


sowing"  and  ingathering."  Then  it  gives  the  tastes  of  the 
five  elements :  *'  That  which  soaks  and  descends  becomes 
salt;  that  which  blazes  and  ascends  becomes  bitter;  that 
which  is  crooked  and  straight  becomes  sour ;  that  which 
obeys  and  changes  becomes  acrid ;  and  from  seed-sowing 
and  ingathering  comes  sweetness."  ^  The  five  elements  have 
their  several  sounds,  colors  and  airs,  as  well  as  tastes ;  but 
the  text  speaks  only  of  their  tastes,  because  they  are  of 
greater  importance  to  the  people  than  the  others,  and  they 
can  be  the  representatives  of  the  others.  Leaving  out  all 
philosophical  points,  we  may  say  that  the  five  elements  are 
the  basis  of  production  and  consumption. 

The  Great  Commentary  of  the  Canon  of  History  says: 
"  Water  and  fire  are  the  things  by  which  the  people  eat  and 
drink;  metal  and  wood  are  the  things  by  which  the  people 
labor;  earth  is  the  thing  upon  which  the  life  of  everything 
depends.  All  these  give  their  utilities  to  man."  Therefore, 
the  five  elements  are  originally  free  goods,  l)ecause  they 
are  produced  by  nature. 

Adding  the  grain  to  the  five  elements,  the  Chinese  call 
them  ''  the  six  treasuries."  Such  a  term  first  appears  in 
the  "  Tribute  of  Yu."  It  says  that  the  six  treasuries  are 
greatly  regulated.^  Because  the  grain  is  the  food  of  the 
people,  they  regard  it  as  equally  important  with  the  five 
elements.  According  to  Tso's  Commentary,  water,  fire, 
metal,  wood,  earth,  and  grain  are  called  the  six  treasuries. 
They  are  called  treasuries  because  they  are  the  sources  of 
wealth  which  depend  upon  nature.  The  rectification  of  the 
people's  virtue,  the  conveniences  of  life,  and  the  securing 
abundant  means  of  sustenance,  are  called  "  the  three  busi- 
nesses." The  six  treasuries  and  the  three  businesses  are 
called  "  the  nine  services."  '      The  distinction  between  the 

^Classics,  vol.  iii,  pt.  ii,  pp.  325-6.        ^/bid.,\A.  i.  p.   141. 
•  Classics,  vol.  V,  pt.  i,  p.  250. 


342        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

six  treasuries  and  the  three  businesses  is  that  the  former 
are  produced  by  natural  power.  But  the  six  treasuries,  al- 
though they  depend  upon  nature,  are  to  be  regulated  by 
human  power.  Therefore,  all  these  are  called  nine  services. 
The  manner  of  regulating  the  six  treasuries  may  be  illus- 
trated by  a  few  examples.  In  ancient  times  there  were 
many  officers  controlling  these  six  things.  During  the  reign 
of  Shun,  the  chief  duty  of  the  prime  minister  was  to  regu- 
late water  and  earth.  Even  after  "  the  great  floods  "  had 
been  repressed  (1725  B.  K.  or  2276  B.  C),  the  regulation 
of  water  remained  important  to  man.  Irrigation,  naviga- 
tion, and  carrying  off  the  floods  are  examples  of  regulating 
water.  Anciently,  the  regulations  of  fire  were  numerous. 
According  to  the  OMcial  System  of  Chou,  there  is  a  bureau 
of  fire.  In  procuring  fire  by  boring  wood,  certain  woods 
were  assigned  to  be  employed  in  the  four  seasons,  in  order 
to  prevent  the  seasonal  diseases.  In  spring  the  fire  was 
taken  from  the  elm  and  willow;  in  summer,  from  the  date 
and  almond  trees;  in  the  last  month  of  summer,  from  the 
mulberry  and  the  wild  mulberry  trees ;  in  autumn,  from  the 
oak  and  the  yu;  in  winter,  from  the  huai  and  the  tan.  In 
the  third  month  the  people  were  ordered  to  use  fire  for 
pottery  and  foundery,  and  in  the  ninth  month  they  were 
forbidden  to  use  fire  for  this  purpose.  In  the  hunting  of 
the  second  month  fire  was  used  for  the  burning  of  the  old 
grass ;  after  that  time  the  people  should  be  fined  if  they  set 
fire  to  the  field  without  permission.^  Metals  and  woods 
were  similarly  regulated  by  rules  in  regard  to  the  manage- 
ment of  mines  and  forests.  As  to  the  regulating  of  the 
earth  and  of  the  grains,  we  shall  speak  later. 

*  Official  System  of  Chou,  ch.  xxx. 


NATURE  AND  CAPITAL  3^3 

2.  Control  over  Nature 

The  acme  of  human  power  is  to  control  nature.  If  man 
can  control  nature,  he  is  equal  to  the  Supreme  Power.  But 
how  can  man  have  such  power?  It  is  by  the  most  com- 
plete sincerity.  Indeed,  it  is  the  result  of  the  most  careful 
and  thorough  study  of  the  truth.  This  is  told  by  the  "  Doc- 
trine of  the  Mean."     It  says : 

It  is  only  he  who  is  possessed  of  the  most  complete  sincerity 
that  can  exist  in  the  world,  who  can  give  its  full  development 
to  his  nature.  Able  to  give  its  full  development  to  his  own 
nature,  he  can  do  the  same  to  the  nature  of  other  men.  Able 
to  give  its  full  development  to  the  nature  of  other  men,  he 
can  give  their  full  development  to  the  natures  of  animals  and 
things.  Able  to  give  their  full  development  to  the  natures  of 
creatures  and  things,  he  can  assist  the  transforming  and  nour- 
ishing powers  of  Heaven  and  Earth.  Able  to  assist  the  trans- 
forming and  nourishing  powers  of  Heaven  and  Earth,  he  may 
with  Heaven  and  Earth  form  a  triumvirate.^ 

The  doctrine  of  controlling  nature  is  very  clearly  given 
by  Hsun  Tzu.  The  seventeenth  book  of  his  work  is  entitled 
"  Essay  on  Heaven  ".  He  uses  the  word  heaven  most  often 
in  the  sense  of  nature,  but  we  may  preserve  the  word  heaven. 
He  says : 

Strongly  clinging  to  the  primary  industry  and  saving  expen- 
diture, heaven  cannot  make  you  poor;  when  the  subsistence  is 
complete,  and  working  at  a  due  time,  heaven  cannot  make  you 
sick.  .  .  .  H  the  primary  industry  is  neglected,  and  the  expen- 
diture is  extravagant,  heaven  cannot  make  you  rich  ;  if  the 
subsistence  is  insufficient,  and  the  working  time  is  contrarv  to 
the  natural  law.  heaven  cannot  make  you  healthy. 

'  Classics,  vol.  i.  p.  416. 


344        ^^^  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

This  shows  that  the  accumulation  of  capital  and  the  preser- 
vation of  labor  are  both  dependent  upon  man,  and  not  upon 
heaven. 

According  to  the  theory  of  Hsun  Tzu,  man  is  the  one 
who  can  form  a  triumvirate  with  Heaven  and  Earth.  What 
we  call  "  divine  ''  is  simply  "  the  natural  deed."  A  sage 
does  not  care  to  know  the  Heaven,  the  supernatural  power. 
When  a  man  has  "  the  natural  feelings  "  and  "  the  natural 
senses,"  the  most  important  thing  for  the  control  of  them 
is  "  the  natural  king,"  the  mind.  To  use  the  mind  for  the 
control  of  those  things  outside  of  the  human  race  is  "  the 
natural  support,"  and  "  the  law  of  natural  selection." 
Therefore,  when  the  natural  king  is  supreme,  man  "  can 
employ  the  heaven  and  earth  as  the  officers  and  exploit  all 
things  as  the  slaves."  This  is  a  materialistic  and  scientific 
doctrine  in  regard  to  the  relation  of  man  and  nature.  The 
chief  power  is  the  human  mind,  the  natural  king. 

Now,  he  makes  a  comparison  between  those  who  can  con- 
trol nature  and  those  who  cannot,  as  follows : 

To  honor  nature  and  to  expect  something  from  it,  is  not  as 
good  as  to  accumulate  things  and  to  shape  them.  To  follow 
nature  and  to  praise  it,  is  not  as  good  as  to  control  what 
nature  has  given  and  to  employ  them.  To  expect  the  time 
and  wait  for  it,  is  not  so  good  as  to  seize  it  and  to  use  it.  To 
increase  the  things  according  to  themselves,  is  not  so  good  as 
to  transform  them  by  the  exercise  of  human  power.  To  wish 
the  thing  and  to  get  the  thing  as  it  is,  is  not  so  good  as  to 
deal  with  the  thing  and  not  to  lose  any  utility  of  it.  To  ex- 
pect the  thing  grown  by  nature,  is  not  so  good  as  to  have  the 
thing  manufactured  by  man.  Therefore,  to  set  aside  the 
power  of  man  and  to  depend  on  the  power  of  nature  is  to  lose 
the  nature  of  everything. 

Hence,  according  to  Hsun  Tzu,  man  is  not  the  dependent 
of  nature,  but  its  controller. 


NATURE  AND  CAPITAL 


345 


3.  Conservation  of  Natural  Resources 

The  conservation  of  natural  resources  takes  three  forms. 
The  first  is  the  conservation  of  the  living-  creatures.  In 
ancient  times  there  were  four  huntings  in  each  quarter  of 
the  year.  But  Confucius  lays  down  a  rule  that  no  hunting 
should  be  held  in  summer,  because  at  that  season  the  crea- 
tures are  growing.  The  "  Royal  Reg-ulations  "  says :  "  To 
hunt  without  observing  the  rules  for  hunting  is  deemed 
cruelty  to  the  creatures  of  Heaven."  The  rules  of  hunting 
and  fishing  are  these:  The  emperor  should  not  surround 
the  hunting-ground,  but  should  leave  one  opening  for  the 
game;  and  the  princes  should  not  take  a  whole  herd  by 
surprise.  When  the  wolf  sacrifices  its  prey,  between  the 
ninth  and  the  tenth  month,  the  hunting  commences.  Until 
the  insects  have  all  withdrawn  into  their  burrows,  the  tenth 
month,  fire  should  not  be  used  for  hunting.  When  the 
otter  sacrifices  its  fish,  the  tenth  month,  the  foresters  begin 
to  enter  the  meres  and  dams  for  fishing.  When  the  dove 
changes  into  a  hawk,  the  eighth  month,  the  large  and  small 
nets  begin  to  be  set  for  the  catching  of  birds.  They  should 
not  take  fawns,  nor  eggs.  They  should  not  kill  pregnant 
animals,  nor  those  which  have  not  attained  to  their  full 
growth.  They  shoulfl  not  throw  down  nests.  These  are 
the  rules  set  forth  in  the  '*  Royal  Regulations."  ^ 

From  the  ethical  point  of  view  these  rules  are  desig'ned 
to  foster  kindness  and  sympathy,  but  from  the  economic 
p>oint  of  view  they  are  for  the  conservation  of  natural 
resources.  Both  points  are  the  objects  of  these  rules.  For 
the  practicing  of  them  we  may  take  Confucius  as  an  ex- 
ample. The  Analects  tells  that  he  angled,  but  did  not  use 
a  net;  and  shot,  but  not  at  birds  perching.*      This  is  the 

'  Li  Ki.  bk.  iii,  pp.  220-221.     The  note  of  Prof.  Legge  makes  a  mis- 
take, because  it  says  that  hunting  is  forbidden  in  autumn. 
'  Classics,  vol.  i,  p.  203. 


346         THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

principle  of  humanity.  On  the  other  hand,  Mencius  points 
out  the  economic  principle,  as  follows :  "  If  close  nets  are 
not  allowed  to  enter  the  pools  and  ponds,  the  fishes  and 
turtles  will  be  more  than  can  be  secured."  ^  The  meshes  of 
a  net  were  anciently  required  to  be  four  inches  in  size,  and 
the  people  might  not  eat  fish  under  a  foot  long.  Therefore, 
the  conservation  of  the  living  creatures  is  preservation  of 
food  for  the  people. 

The  second  is  the  conservation  of  the  forests.  Mencius 
says :  "  If  the  axes  and  hatchets  enter  the  hills  and  forests 
only  at  the  proper  time,  the  wood  will  be  more  than  can  be 
used."  ^  But  what  is  the  proper  time?  We  may  find  this  in 
the  "  Royal  Regulations."  It  says,  when  the  plants  and 
trees  drop  their  leaves,  the  tenth  month,  the  people  enter 
the  hills  and  forests  with  the  axes.^  According  to  the  Offi- 
cial System  of  Chou,  there  is  a  forester  to  take  charge  of 
the  rules  of  forests.  For  instance,  in  midwinter  the  trees 
on  the  south  of  the  hill  are  cut  down,  and  in  midsummer 
those  on  the  north.  When  the  people  are  admitted  to  cut 
down  the  trees,  they  are  regulated  by  the  number  of  days. 
Although  we  do  not  know  the  length  of  the  time  period,  we 
may  be  sure  that  this  rule  preserved  the  trees.  In  spring 
and  autumn  the  people  should  not  enter  forbidden  places  to 
cut  down  trees,  although  they  may  cut  the  wild  trees.  If 
the  people  steal  trees  during  the  forbidden  time,  they  should 
be  fined.*  These  rules  are  for  the  conservation  of  the 
forests. 

The  third  is  the  conservation  of  the  mines.  The  ''  Doc- 
trine of  the  Mean  "  says  that  the  precious  treasuries  are 

'  Classics,  vol.  ii,  p.  130. 

2  Ibid. 

'  L\  Ki,  bk.  iii,  p.  221. 

*  Official  System  of  Chou,  ch.  xvi. 


NATURE  AND  CAPITAL 


347 


found  on  the  mountains,^  but  it  does  not  touch  the  conser- 
vation of  them.  The  ''  Royal  Regulations  "  says  that  the 
famous  mountains  and  great  meres  are  not  conferred  on 
any  feudal  lords  either  within  or  without  the  imperial 
state.^  This  rule  has  two  points.  On  the  distributive  side 
it  is  against  monopoly,  which  will  be  discussed  later.  On 
the  productive  side  it  is  for  the  conservation  of  natural 
resources.  Since  all  the  famous  mountains  and  the  great 
meres  are  under  the  control  of  the  central  government,  no 
one  can  exhaust  the  natural  wealth.  According  to  the  Offi- 
cial System  of  Choti,  all  the  lands  which  produce  gold,  jade, 
tin,  and  precious  stones  are  controlled  by  the  miner,  an 
official.  He  makes  severe  prohibitions,  and  orders  the 
people  of  their  neighborhood  to  guard  them.  If  any  mine 
is  opened  at  a  proper  time,  he  draws  a  map  of  it,  and  gives 
it  to  those  who  dig  the  mine.  Around  those  lands  he  looks 
after  the  prohibitions  and  orders.^  These  are  the  rules  for 
the  conservation  of  the  mines. 

The  fundamental  principle  underlying  the  conservation 
of  natural  resources  is  the  law  of  diminishing  returns. 
Although  this  law  is  not  expressed,  it  is  clearly  implied. 

4.  Influence  of  Natural  Enznronment 

While  nature  is  a  factor  of  production  and  is  controlled 
by  man,  it  has  in  turn  a  great  influence,  modifying  man. 
The  "  Royal  Regulations  "  says: 

In  all  the  settlements,  the  physical  capacities  of  the  people  are 
sure  to  be  according  to  the  sky  and  earthly  influences,  as  cold 
or  hot,  dry  or  moist.  Where  the  wide  valleys  and  the  large 
rivers  are  different  in  shape,  people  born  in  them  have  differ- 

*  Classics,  vol.  i,  p.  421. 
*Li  Ki,  Mc.  iii,  pp.  21 1-2. 

•  Official  System  of  Chou,  ch.  xvi. 


348 


THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 


ent  customs.  The  measure  of  their  temperaments,  as  hard  or 
soft,  Hght  or  grave,  slow  or  rapid;  the  taste  of  their  prefer- 
ences as  to  flavors;  the  fashion  of  their  implements  and 
weapons ;  and  the  suitability  of  their  clothes — all  are  different.^ 

According  to  this  statement  the  natural  environment 
shapes  the  man.  First,  it  fixes  the  physical  capacities  of  the 
people;  second,  it  fosters  their  temperaments;  third,  it  pro- 
duces different  customs;  fourth,  it  establishes  different  eco- 
nomic conditions,  either  in  production  or  in  consumption. 
The  teaching  is,  further,  that  these  differences  should  not 
be  disturbed  by  government — a  laissez-faire  policy,  in  so 
far;  and  there  is  a  recognition  that  in  these  differences  is 
the  basis  of  international  trade.^ 

For  the  influence  of  the  natural  environment  upon  the 
people  there  is  a  general  principle  given  by  Ching  Chiang, 
a  widow  of  the  noble  family  of  Lu.     She  says : 

Anciently,  when  the  sage  kings  settled  the  people,  they  selected 
the  poor  land  for  the  settlement  of  them,  and  made  them  work 
hard  for  the  employment.  Hence,  they  ruled  the  empire  for 
a  long  time.  For  if  the  people  are  working  hard,  they  will 
think.  If  they  think,  their  good  thoughts  arise.  If  they  are 
living  in  an  easy  way,  they  will  be  licentious.  If  they  are 
licentious,  they  forget  what  is  good.  If  they  forget  what  is 
good,  their  bad  thoughts  arise.  Therefore,  the  people  of  the 
rich  land  have  no  strong  character,  because  they  are  licen- 
tious ;  and  those  of  the  poor  land  all  direct  their  mind  to 
righteousness,  because  they  are  working  hard.^ 

Then  she  describes  the  different  businesses  of  the  two  sexes 
of  different  classes,  from  the  emperor  to  the  common  people. 

'  Li  Ki,  bk.  iii,  p.  228.  ^  Cf.  infra,  p.  450. 

'  Narratives  of  Nations,  bk.  v. 


NATURE  AND  CAPITAL 


349 


When  Confucius  has  heard  her  words,  he  tells  his  pupils  to 
record  them. 

The  principle  given  by  Ching  Chiang  is  a  mixture  of  eco- 
nomics and  ethics.  We  now  come  to  the  pure  economic 
principle.  In  the  "  Biography  of  Merchants/'  Ssu-ma 
Chien  gives  a  commercial  geography.  He  describes  the 
geographical  situations  of  the  great  cities,  their  natural  re- 
sources, their  population,  their  history,  their  prominent  occu- 
pations, their  customs,  etc.  We  cannot  enter  into  all  the 
details,  but  we  may  condense  his  conclusion.  According  to 
him.  in  Southern  China  land  was  plenty,  the  i^opulation  was 
sparse,  the  soil  was  rich,  and  food  was  abundant  without 
the  fear  of  famine.  On  this  account  the  people  were  lazy, 
short-sighted,  and  had  no  saving.  Therefore,  there  was 
none  who  suffered  from  hunger,  but  there  was  no  family 
which  possessed  a  thousand  dollars.  In  Northern  China 
the  land  was  scarce,  the  population  was  dense,  the  soil  was 
good  for  agriculture,  but  the  people  often  suffered  from 
flood  and  drought.  Hence,  they  had  a  desire  for  saving. 
Therefore,  they  were  diligent  in  different  industries,  such 
as  agriculture,  animal-breeding,  silk-worm,  commerce  and 
speculation,  in  different  localities.  Such  a  difference  be- 
tween Southern  and  Northern  China  was  true  only  in  an- 
cient times;  it  has  gradually  disappeared  since  the  end  of 
the  Han  dynasty  (about  735  A.  K.  or  184  A.  D. ).  But 
the  theory  of  Ssu-ma  Chien  is  held  true  by  the  general  mind. 
His  theory  is  like  that  of  Ching  Chiang;  both  are  based  on 
the  idea  that  the  people  are  spoiled  if  they  make  their  living 
too  easily.  The  only  difference  is  that  Ching  Chiang  looks 
at  it  from  both  economic  and  ethical  points  of  view,  while 
Ssu-ma  Chien  regards  it  from  the  economic  viewpoint  only. 
Indeed,  natural  environment  has  a  great  influence  in  deter- 
mining the  economic  conditions  and  the  characters  of  men. 
It  is  only  when  the  human  power  grows  greater  that  the 
natural  powrr  fUminishes. 


350        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

II.    LAND 

I.  Limited  in  Quantity 

Since  the  land  is  the  chief  representative  of  the  natural 
things  which  help  production,  we  may  consider  it  separ- 
ately. When  we  study  the  land  question,  the  first  thing  that 
confronts  us  is  that  land  is  limited  in  quantity.  The  "  Royal 
Regulations  "  says : 

A  space  one  mile  square  contains  fields  amounting  to  900 
acres.  Ten  miles  square  is  equal  to  100  spaces  one  mile 
square,  and  contains  90,000  acres.  A  hundred  miles  square  is 
equal  to  100  spaces  ten  miles  square,  and  contains  9,000,000 
acres.  A  thousand  miles  square  is  equal  to  100  spaces  one 
hundred  miles  square,  and  contains  900,000,000  acres.  .  .  .  All 
within  the  four  seas,  taking  the  length  with  the  breadth,  makes 
up  a  space  3,000  miles  square,  and  contains  8,100,000,000  acres. 
A  space  100  miles  square  contains  ground  to  the  amount  of 
9,000,000  acres.  Hills  and  mounds,  forests  and  thickets, 
rivers  and  marshes,  ditches  and  canals,  city  walls  and  suburbs, 
houses,  roads,  and  lanes  take  up  one-third  of  it,  leaving 
6,000,000  acres. ^ 

2.   Various  in  Quality 

The  second  thing  that  confronts  us  is  that  land  is  various 
in  quality.  This  is  most  clearly  set  forth  in  the  "  Tribute 
of  Yii."  After  Yii  repressed  the  great  floods,  he  divided 
the  Chinese  Empire  into  nine  provinces,  and  classified  the 
land  into  nine  gradations.  For  convenience  of  review  we 
may  reduce  the  statements  ^  to  the  form  of  a  table : 

^  Li  Ki,  bk.  iii,  pp.  244-6. 

'  Classics,  vol.  iii,  pt.  i,  pp.  94-125. 


NATURE  AND  CAPITAL 


Yo^ 


Grades  of 
Land 

I 
Names  of 
Provinces 

Yung  Chow 

Present  Provinces 

Color  and  Nature 
of  Soil 

First 

Shensi  and  Kansu 

Yellow  and  mellow 

Second 

Su  Chow 

Shantung,      Kiangsu 

Red,  clayey  and 

and  Anhui 

rich 

Third 

Ts'ing  Chow 

Shantung 

Whitish  and  rich, 

Fourth 

Yii  Chow 

Honan 

salt 
Mellow,  rich,  dark 
and  thin 

Fifth 

Ki  Chow 

Chihli  and  Shansi 

Whitish  and  mellow 

Sixth 

Yen  Chow 

Chihli  and  Shantung 

Blackish  and  rich 

Seventh 

Liang  Chow 

Szechuan  and  Shensi 

Greenish  and  light 

Eighth 

King  Chow 

Hunan  and  Hupei 

Miry 

Ninth 

Yang  Chow 

Kiangsu.       Anhui, 
Kiangsi,  and   Che- 

Miry 

kiang 

This  table  shows  the  differences,  in  color  and  nature,  of  the 
soil  with  general  reference  to  the  whole  province,  and  classi- 
fies the  land  into  nine  grades.  Such  a  classification  is  \^xy 
general  and  rough  indeed,  but  it  indicates  that  the  compara- 
tive study  of  the  quality  of  land  had  begun  at  a  very  early 
time. 

The  Official  System  of  Choii  also  classifies  the  land  into 
nine  grades,  but  it  differs  from  the  '*  Tribute  of  Yu." 
While  the  latter  judges  the  land  collectively  from  the  gen- 
eral view  of  the  whole  province,  it  judges  the  land  specifi- 
cally from  the  quality  of  the  land  itself.  According  to  the 
Official  System  of  Chou,^  the  quality  of  land  is  measured 
by  its  power  of  supporting  population.  It  gives  expressly 
only  the  middle  class  of  land,  by  saying  that  a  prescribed 
amount  (one  hundred  acres)  of  the  superior  land  can  sup- 
port a  family  of  seven  persons;  of  the  ordinary  land,  one 
of  six  persons;  and  the  same  amount  of  the  inferior  land, 
one  of  five  persons.  These  are  the  three  kinds  of  land  in 
the  middle  class.     Such  a  statement,  according  to  the  com- 

'  Ch.  xi. 


352         THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

mentary  of  Cheng  Hsuan,  implies  that  there  are  nine  gra- 
dations of  land,  and  that  only  the  middle  class  is  given  as 
an  example.  In  the  highest  class,  the  land  can  support 
either  eight,  or  nine,  or  ten  persons.  In  the  lowest  class,  it 
can  support  either  two,  or  three,  or  four  persons.  In  the 
grand  division,  land  is  divided  into  three  classes,  and  in  its 
subdivision,  it  is  divided  into  nine  grades.  Such  a  grada- 
tion is  determined  by  the  number  of  people  which  the  land 
can  support. 

3.  D liferent  in  Location 

Difference  in  lands  are  due  not  only  to  their  qualities,  but 
also  to  their  locations.  According  to  the  Confucian  theory, 
the  capital  city  of  a  state  should  be  in  its  center.  Taking 
the  city  as  the  central  point,  the  land  of  the  whole  state  is 
divided  up  into  five  zones.  Outside  of  the  city,  it  is  called 
"  suburb ;"  outside  of  the  suburb,  "  country ;"  outside  of 
the  country,  "  forest;"  outside  of  the  forest,  "  frontier."  ^ 
These  five  names  are  merely  geographical  divisions  for  the 
indication  of  the  difference  of  location.  The  widths  of  all 
the  zones  are  equal,  and  they  vary  only  according  to  the 
extent  of  the  whole  state.  In  fact,  the  difference  of  loca- 
tion is  measured  from  the  central  city.  In  a  simple  way, 
there  are  only  three  divisions,  namely,  the  city,  the  suburb, 
and  the  country,  which  includes  the  forest  and  frontier. 

4.  Form  of  Field 

For  the  division  of  the  land  we  must  study  the  system  of 
tsing  tien.  This  system  is  so  important  that  we  discuss  it 
separately  in  another  chapter.  What  we  consider  here  is 
only  the  form  of  tsing  tien. 

In  ancient  China  the  land  was  divided  up  into  the  form 
of  tsing.     Tsing  means  well,  which  written  in  Chinese  is 

'  The  Oldest  Chinese  Dictionary  ( Rrh  Ya),  ch.  ix. 


NATURE  AXD  CAPITAL  ^r^ 


J L-     Since  the  shape  of  the  field  was  Hke  the  word  j 


it  was  called  tsing  tien.     Tien  (j— j--    )  means  field.     One 

tsing  contained  nine  squares  of  land ;  each  square  was  of 
one  hundred  acres  and  was  called  one  /// ;  the  total  amount 
of  a  fsing  was  nine  hundred  acres.  This  system  began  with 
the  reign  of  Huang  Ti ;  it  was  universally  established  by 
Yii,  and  it  was  completed  in  details  by  the  Duke  of  Chou. 

In  one  square  of  land  the  one  hundred  acres  contained 
ten  thousand  paces.  According  to  the  ancient  measures, 
six  feet  was  one  pace,  and  one  hundred  paces  was  one  acre. 
Therefore,  one  acre  was  six  feet  wide  and  six  hundred  feet 
long.  Hence,  the  Canon  of  Poetry  says,  '*  The  grain  is  well 
cultivated  all  over  the  long  acres."  ^  Between  two  acres 
there  was  a  small  ditch.  If  there  were  one  hundred  acres, 
there  were  one  hundred  small  ditches.  The  acre  was  higher, 
and  the  ditch  was  lower.  Since  one  ploughshare  was  five 
inches  wide,  and  two  men  using  two  ploughshares  were 
called  a  pair,  the  cultivation  of  a  pair  was  a  foot  wide  and 
deep,  and  this  was  the  form  of  a  small  ditch.  In  cultivation, 
the  farmer  first  used  the  plough  to  turn  over  the  grass,  and 
then  formed  lines,  such  as  the  acres  and  ditches.  This  was 
the  plan  of  one  square  of  land,  and  the  small  ditch  was  the 
basis  of  the  measure  of  all  the  water-channels. 

For  the  system  of  tsiug  tien  the  water-channels  were  very 
important,  because  they  determined  the  boundaries  of  the 
field  and  carried  off  the  water  of  floods.  Such  a  system  of 
water-channels  was  originated  by  Yii.  .After  he  had  fixed 
the  natural  waterway  he  devoted  his  attention  to  the  arti- 
ficial waterway  along  the  fields. 

In  the  Chou  dynasty  the  tsing  tien  system  was  at  its  height, 
and  the  water-channels  were  complete.     .According  to  the 

*  Classics,  vol.  iv.  pt.  ii.  p.  378. 


354 


THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 


"  Record  of  Industry,"  ^  the  bureau  of  civil  engineering  is 
in  charge  of  water-channels,  and  it  gives  the  following 
standard  measures  for  the  making  of  different  waterways : 
Within  the  fu,  a  field  of  one  hundred  acres,  the  small  ditch 
running  between  two  acres  is  one  foot  wide  and  deep. 
Hence,  one  fu  has  one  hundred  small  ditches.  Along  the 
head-line  of  the  field,  the  large  ditch  running  outside  of  the 
fu  is  two  feet  wide  and  deep.  Hence,  three  fu  have  only 
one  large  ditch  in  common.  Outside  of  the  tsing  which 
contains  nine  fu,  the  ditch  is  four  feet  wide  and  deep. 
Hence,  ten  tsing  have  only  one  such  ditch  in  common.  Ten 
miles  square  make  one  ch'eng,  which  contains  one  hundred 
tsing,  and  outside  of  the  ch'eng  the  larger  ditch  is  eight  feet 
wide  and  deep.  Hence,  ten  clieng  have  only  one  larger 
ditch.  One  hundred  miles  square  make  one  timg,  which 
contains  ten  thousand  tsing,  and  outside  of  the  tung  the 
largest  ditch  is  sixteen  feet  wide  and  deep.  The  length  of 
the  largest  ditch  is  uncertain,  and  its  water  flows  to  the  nat- 
ural stream  directly.  In  a  tung,  the  tsing  tien  system  is 
complete,  and  it  has  five  grades  of  water-channels :  ( i )  the 
one- foot  ditch,  (2)  the  two-foot  ditch,  (3)  the  four-foot 
ditch,  (4)  the  eight-foot  ditch,  and  (5)  the  sixteen-foot 
ditch.  This  is  the  general  rule,  but  it  must  be  modified 
according  to  the  geographical  situation. 

Along  all  the  water-channels,  except  the  one-foot  ditch, 
there  were  different  roads.  Along  the  two-foot  ditch  the 
road  was  large  enough  for  the  ox  and  horse;  along  the 
four-foot  ditch  it  was  large  enough  for  the  wagon;  along 
the  eight-foot  ditch,  for  one  chariot;  along  the  sixteen-foot 
ditch,  for  two  chariots;  and  along  the  natural  stream  or 
artificial  canal,  for  three  chariots.^  These  waterways  and 
roads  were  the  general  rules  for  the  formation  of  tsing  tien. 

^  It  was  a  separate  book  written  during  the  Chou  dynasty.    But  it  is 
now  contained  in  the  end  of  the  Official  System  of  Chou,  ch.  xlii. 
^  Official  System  of  Chou,  ch.  xv. 


NATURE  AND  CAPITAL 


355 


According  to  the  Canon  of  Poetry,  there  were  two  kinds 
of  acres :  one  kind  was  called  **  southern  acres,"  and  the 
other  ''  eastern  acres."  In  the  southern  acres,  the  acres  and 
the  small  ditches  all  ran  east  and  west,  and  in  the  eastern 
acres  they  all  ran  north  and  south.  Because  looking  from 
the  north  the  southern  acres  were  arranged  in  the  south, 
they  were  called  southern  acres.  Because  looking  from  the 
west  the  eastern  acres  were  arranged  in  the  east,  they  were 
called  eastern  acres.  The  acres  were  southern  or  eastern  in 
accordance  with  the  river.  Since  the  Chinese  rivers  mostly 
run  from  the  west  to  the  east,  the  greater  part  of  the  land 
became  eastern  acres.  For,  if  the  river  was  in  the  latitu- 
dinal line,  the  largest  ditch  should  be  in  the  longitudinal 
line;  then  the  next  smaller  ditch  was  latitudinal  and  the 
four-foot  ditch  longitudinal ;  then  the  two-foot  ditch  was 
latitudinal  and  the  smallest  ditch  longitudinal ;  hence,  the 
acres  were  arranged  in  the  east.  The  southern  acres  were 
arranged  z'icc  versa.  The  Chinese  rivers  sometimes  run 
either  toward  the  south  or  toward  the  north,  so  there  were 
also  the  southern  acres.  Both  the  southern  and  the  eastern 
acres  were  according  to  the  natural  situation  of  the  land. 

III.    CAPITAL 

I.  Capital  and  Wealth 

The  word  capital  in  Chinese  is  pen.  Its  original  sense 
means  the  root  of  a  tree;  hence,  it  means  the  principal  part 
or  the  basis  of  anything.  The  word  pen  used  in  the  sense 
of  capital  first  appears  in  Kuan  Tcii,  and  it  has  been  popu- 
larly used  to  the  present  day.  But  the  word  used  in  this 
sense  is  not  to  be  found  in  the  writings  of  Confucius.  In- 
stead, he  uses  the  word  tcii.  The  Canon  of  Poetry  says; 
"  Ruin  and  flisorder  are  destroying  the  tcti  [the  capital], 
and  do  not  show  any  kindness  to  our  multitudes."  ^     The 

'  Cf.  Classics,  vol.  iv.  pt.  ii.  p.  502.     See  also  ibid.,  p.  520. 


356        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

Park  of  Narratives  says  that  this  sentence  expresses  grief 
that  disorder  is  caused  by  luxury  and  extravagance,  with- 
out saving.^  Chen  Huan  says  that  the  "  accumulated 
wealth  "  is  called  tzii.'^  Therefore,  the  word  tzu  in  Chinese 
is  exactly  the  word  capital  in  English.  In  the  Canon  of 
Changes  there  is  a  book  on  "  Traveling,"  which  refers 
especially  to  the  traveling  merchant,  although  it  includes 
travelers  generally.  It  describes  the  good  condition  of  a 
traveling  merchant  as  follows :  "  The  traveler  occupies  the 
proper  place,  carries  with  him  his  tzu,  and  secures  the 
trusty  servants."  ^  This  statement  includes  the  three  factors 
of  production ;  the  word  tzu  means  capital,  while  the  proper 
place  and  the  trusty  servants  refer  to  land  and  labor  re- 
spectively. Indeed,  the  word  tzu  is  used  by  Confucius  as 
capital,  because  tzu  means  accumulation  or  storage.  Hence, 
the  Chinese  combine  the  word  tzu  either  with  the  word  tsai 
(wealth),  or  with  the  word  pen,  for  the  term  capital.  The 
Japanese  adopt  the  latter  expression. 

The  word  wealth  in  the  Chinese  language  is  sometimes 
the  same  as  the  word  capital.  Such  a  case  has  been  already 
shown  in  the  ''  Great  Learning."  *  Sometimes  the  word 
wealth  combining  with  the  word  commodity  forms  the  term 
capital.  For  instance,  Mencius  says :  '*  The  fields  and  wilds 
not  being  developed,  and  the  commodities  and  wealth  not 
being  accumulated,  these  are  not  the  chief  danger  of  a 
state."  ^  The  two  words  "  commodities  and  wealth " 
stand  as  the  English  word  capital,  while  "  fields  and  wilds  " 
stand  for  land.     This  is  the  style  of  Chinese  expression. 

Since  the  word  wealth  is  sometimes  identified  with  the 

1  Bk.  vii. 

'  In  his  Explanation  of  Mao's  Commentary  of  the  Canon  of  Poetry, 
published  in  2398  (1847  A.  D.). 

-  Yi  King,  p.  188.  ■*  See  supra,  p.  293. 

^Classics,  vol.  ii,  p.  291. 


NATURE  AND  CAPITAL  357 

word  capital,  we  may  find  out  what  is  meant  by  wealth. 
Hsii  Shen's  Dictionary  ^  says :  "  Wealth  is  what  man  re- 
gards as  valuable."  Cheng  Hsiian  says  that  wealth  includes 
all  money  and  grain.  Money  and  grain,  as  we  shall  see, 
are  the  chief  representatives  of  capital  goods ;  hence,  Cheng 
Hsiian  takes  them  for  the  explanation  of  the  word  wealth. 
Even  in  the  present  day  the  Chinese  still  use  the  two  words 
"  money  and  grain  "  to  cover  the  whole  economic  field. 
Although  they  are  not  so  dignified  as  the  term  "  food  and 
commodities,"  they  are  synonyms.  But  the  best  definition 
of  the  word  wealth  is  given  by  Hsiang  An-shih  (died  in 
1759  A.  K.  or  1208  A.  D.).  He  says:  "  The  word  wealth 
is  the  collective  name  of  all  the  things  in  which  the  people 
find  their  utilities."  In  short,  wealth  is  the  general  term 
covering  all  production  and  consumption  goods,  while  cap- 
ital is  the  particular  term  covering  only  production  goods 
and  those  consumption  goods  which  are  used  for  productive 
purposes.  Hence,  the  Chinese  use  such  terms  as  "  funds," 
"  principal  money,"  *'  accumulated  wealth  "  and  "  mother 
wealth  "  for  the  word  capital. 

To  understand  the  meaning  of  wealth  we  may  look  at  the 
problem  from  the  standpoint  of  different  classes.  Accord- 
ing to  the  ''  Details  of  Rites,"  each  class  has  special  repre- 
sentatives of  its  wealth. 

When  one  asks  about  the  wealth  of  the  ruler  of  a  state,  the 
reply  should  be  given  by  telling  the  extent  of  his  territory, 
and  the  productions  of  its  hills  and  lakes.  To  a  question  about 
the  wealth  of  the  great  official,  it  should  be  said :  "  He  has  the 
lands  allotted  to  him,  and  is  supported  by  the  taxes  of  his 
people.  He  needs  not  to  borrow  vessels  or  dresses  for  his 
sacrificial  occasions."     To  a  question  about  the  wealth  of  the 

'  It  was  begun  in  651,  and  presented  to  the  emperor  in  672  (loo-ui 
A.  D.). 


358 


THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 


student,  the  reply  should  be  by  giving  the  number  of  his  car- 
riages; and  to  one  about  the  wealth  of  a  common  man,  by 
telling  the  number  of  the  animals  that  he  keeps. ^ 

According  to  this  passage,  the  wealth  of  any  class  is  a 
collective  name  for  all  material  things.  It  does  not  confine 
the  term  wealth  to  any  particular  thing.  If  the  people 
understand  this,  they  never  make  the  mistake  of  thinking 
that  money  is  the  only  wealth,  because  it  does  not  mention 
money  at  all.  Indeed,  wealth  includes  both  production  and 
consumption  goods. 

2.  Grain  as  Capital 

While  grain  is  a  consumption  good,  the  Confucians  re- 
gard it  also  as  a  very  important  capital  good ;  hence,  there 
is  the  principle  of  accumulating  grain.  The  ''  Royal  Reg- 
ulations "  says : 

If  in  a  state  there  is  not  an  accumulation  of  saving  sufficient 
for  nine  years,  its  condition  is  called  one  of  insufficiency ;  if 
there  is  not  enough  for  six  years,  one  of  urgency.  If  there  is 
not  a  saving  sufficient  for  three  years,  the  state  cannot  con- 
tinue. The  husbandry  of  three  years  is  held  to  give  an  over- 
plus of  food  sufficient  for  one  year ;  that  of  nine  years,  an 
overplus  sufficient  for  three  years.  Going  through  thirty  years 
in  this  way,  though  there  might  be  bad  years,  drought  and  in- 
undations, the  people  would  have  no  lack,  nor  be  reduced  to 
eating  merely  vegetables.^ 

In  short,  every  family  must  save  grain  at  such  a  rate  that 
every  three  years  should  yield  a  surplus  sufficient  for  one 
year.  This  is  the  general  rule  of  saving,  and  grain  is  only 
the  example,  as  it  was  the  most  important  thing  in  ancient 
times. 

^  Li  Ki,  bk.  i,  pp.  115-6.  "^  Ibid.,  bk.  iii,  p.  222. 


NATURE  AND  CAPITAL 


359 


According  to  the  ''  Royal  Regulations,"  a  state  as  a 
whole  must  have  an  accumulation  sufficient  for  at  least 
nine  years.  But  the  accumulation  is  of  nothing  but  food. 
Therefore,  food  is  not  only  a  consumption  good  for  the 
present,  but  also  a  capital  good  for  the  future.  Since  food 
is  not  a  permanent  article,  it  needs  a  successive  renewal 
for  the  change  of  the  old.  But  it  serves  as  a  capital  good 
just  the  same.  In  fact,  in  ancient  China  grain  was  the 
chief  among  all  the  capital  goods,  since  land  was  in  a  sep- 
arate category;  and  the  accumulation  of  grain  was  a  na- 
tional surplus. 

In  the  Han  dynasty  the  theory  of  accumulating  grain 
was  put  into  full  effect.  The  chief  representatives  of  this 
theory  were  Chia  Yi  and  Chao  Tso.  Chia  Yi  pointed  out 
to  his  emperor  that  if  wealth  is  produced  in  limited  amounts 
but  is  consumed  without  any  limit,  the  capital  must  in  time 
be  exhausted.  Now,  the  people  run  away  from  agriculture 
and  turn  to  industry  and  commerce.  Hence,  the  con- 
sumers are  very  many,  and  luxurious  habits  spread  day 
after  day.  These  two  facts  are  the  great  injury  and  the 
great  destroyer  of  the  empire.  Those  who  produce  wealth 
are  few,  but  those  who  waste  it  are  many:  how  can 
the  wealth  and  property  of  the  empire  fail  to  fall  short? 
Indeed,  on  accumulating  and  storing  up  for  the  future  the 
fate  of  the  empire  depends.  If  grain  is  plenty  and  wealth 
is  superabundant,  what  can  we  not  accomplish?  In  an 
attack,  we  can  take  what  we  want ;  in  a  defense,  we  can 
have  a  safeguard ;  in  a  battle,  we  can  win  the  victory.  In 
calling  the  enemy  and  absorbing  the  foreigners,  who  will 
not  come  at  our  invitation?  Now,  if  we  drive  our  people 
back  to  the  farm  for  the  attachment  to  primary  industry, 
we  shall  make  every  one  of  the  empire  eat  the  produce  of 
his  own  labor,  and  the  people  of  little  skill  and  the  journey- 
men turn  to  the  fields.     Then  the  storage  and  accumula- 


360        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

tion  will  be  sufficient  and  the  people  will  enjoy  their  life. 
This  policy  is  for  the  wealth  and  safety  of  the  empire. 
Han  Wen  Ti  was  influenced  by  the  words  of  Chia  Yi,  and 
he  opened  "  the  borrowing  field  "  for  his  personal  cultivation 
in  order  to  set  a  good  example  to  his  people  (374  A.  K. 
or  178  B.  C). 

In  384  (168  B.  C.)  Chao  Tso  also  said  to  Han  Wen  Ti 
that,  when  the  sage  kings  were  in  the  government,  their 
people  did  not  suffer  from  cold  and  hunger.  This  came 
about,  not  because  they  could  feed  and  clothe  them  by  their 
own  cultivation  and  weaving,  but  because  they  opened  the 
sources  of  capital  for  them.  Therefore,  although  Yao  and 
Yii  had  the  flood  of  nine  years,  and  T'ang  had  the  drought 
of  seven  years,  the  empire  did  not  suffer  from  famine  or 
pestilence.  This  was  because  saving  and  accumulation 
were  abundant  and  preparation  was  completed  beforehand. 
Therefore,  the  wise  ruler  encourages  the  people  to  take  up 
agricultural  occupation,  lightens  their  taxes,  and  extends 
the  accumulations  for  the  filling  of  granaries  and  the  prep- 
aration against  flood  and  drought.  The  immediate  policy 
of  Chao  Tso  was  to  call  upon  the  people  for  the  sending 
of  grain  to  the  granaries  in  the  northern  boundary,  where 
the  Chinese  guarded  against  the  Huns.  The  people  should 
receive  titles  from  the  government,  and  the  gradation  of 
the  title  should  be  according  to  the  amount  of  grain  which 
they  sent.  After  Han  Wen  Ti  had  put  his  policy  into 
effect,  he  proposed  again  to  order  the  people  to  send  their 
grain  inland,  and  Wen  Ti  followed  his  advice  again. 
Therefore,  during  the  reigns  of  Wen  Ti  and  Ching  Ti  (373- 
411,  or  1 79-141  B.  C.)  China  was  very  rich,  both  the  gov- 
ernment and  the  people.^  It  was  the  contribution  of  Chia 
Yi  and  Chao  Tso,  and  their  theory  was  drawn  from  Con- 
fucius. 

^  History  of  Han,  ch.  xxiv. 


NATURE  AND  CAPITAL  361 

3.  Saving 

Since  capital  is  the  result  of  saving,  we  now  come  to  the 
principle  of  saving.  Confucius  speaks  of  saving,  not  only 
for  the  private  family,  but  also  for  the  state.  In  ruling  a 
state  of  a  thousand  chariots,  one  of  the  five  things  is  saving 
in  expenditure.^  In  the  Canon  of  Changes  there  is  a  book 
called  ''Chieh/'  which  means  abstinence,  control,  restraint, 
economy,  saving,  etc.  It  includes  three  phases — law,  ethics 
and  economics.  In  the  beginning  of  this  book  it  is  stated 
that  abstinence  is  the  basis  of  progress  and  attainment.  But 
the  reader  is  reminded  that  if  the  abstinence  is  very  severe 
and  difficult,  it  cannot  be  right."  This  shows  that  the 
principle  of  saving  in  the  teaching  of  Confucius  is  not  cruel 
parsimony  but  reasonable  abstinence. 

The  chief  point  of  this  book  is  this:  ''Basing  on  the 
principle  of  abstinence  for  the  making  of  regulations,  it  will 
not  injure  the  wealth,  nor  hurt  the  people."  ^  This  is  an 
abstract  economic  principle.  It  refers  to  either  public  or 
private  economy.  As  soon  as  wealth  is  injured  people  are 
hurt,  even  in  the  case  of  a  private  person.  Therefore,  if 
you  wish  not  to  injure  the  wealth,  there  must  be  some  sort 
of  regulations,  such  as  financial  legislation  in  a  government, 
or  as  control  of  expenditure  in  a  private  person,  according 
to  the  principle  of  abstinence.  Hence,  abstinence  is  the 
basis  for  the  preservation  of  wealth  and  the  benefit  of  the 
people. 

When  Confucius  speaks  of  the  filial  piety  of  the  feudal 
princes,  he  says :  "  Making  the  saving,  and  carefully  observ- 
ant of  the  regulations,  they  are  full  without  overflowing. 
.  .  .  To  be  full  without  overflowing  is  the  way  long  to 
preserve  riches."  *     Again,  when  he  speaks  of  the  filial  piety 

*  See  supra,  p.  79.  '  Vi  King,  p.  197. 

*  Ibid.,  p.  262.  *  Sacred  Books,  vol.  iii,  p.  468. 


362 


THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 


of  the  common  people,  he  mentions  saving  in  expenditure.^ 
Therefore,  every  class,  from  the  emperor  to  the  common 
people,  must  observe  the  principle  of  saving. 

The  importance  of  saving  is  thus  told  by  Hsun  Tzu : 

In  the  living  of  a  man,  he  keeps  fowls,  dogs  and  pigs, 
and  he  keeps  also  oxen  and  sheep ;  but  in  his  eating,  he  does 
not  dare  to  have  wine  and  meat.  He  has  plenty  of  money  and 
stores  of  grain,  but  in  his  dressing  he  does  not  dare  to  have 
silk.  He  has  the  deposit  of  the  most  valuable  things,  but  in 
his  going  he  does  not  dare  to  have  carriage  and  horse.  What 
is  the  reason?  It  is  not  because  he  does  not  want  them,  but 
because  he  has  a  long  thought  and  cares  for  the  future,  lest 
nothing  will  succeed  hereafter.  Therefore,  he  saves  expen- 
diture, controls  wants,  and  accumulates  wealth  for  the  succes- 
sion. How  good  it  is  that  he  has  a  long  thought  and  cares  for 
the  future  in  regard  to  himself !  The  short-sighted  people 
who  are  careless  for  their  living  do  not  know  even  this.  They 
consume  food  extravagantly,  and  do  not  care  for  the  future. 
Then  they  exhaust  quickly  all  the  means.  This  is  the  reason 
they  cannot  escape  from  cold  and  hunger,  and  become  beggars 
or  victims  dying  in  the  ditches.^ 

Indeed,  the  opening  of  the  sources  of  income  and  the  saving 
of  expenditure  are  the  only  ways  for  the  increase  of  wealth. 
They  are  both  familiar  to  all  the  Chinese,  but  the  latter 
only  is  the  way  of  increasing  capital. 

1  See  supra,  p.  157.  ^  Bk.  iv. 


3fc3 


STUDIES  IN  HISTORY,  ECONOMICS  AND  PUBLIC  LAW 

EDITED  BY  THE   FACULTY  OF   POLITICAL  SCIENCE 
OF  COLUMBIA   UNIVERSITY 

Volume  XLV  Whole  Number  113 


THE  ECONOMIC  PRINCIPLES  OF 
CONFUCIUS  AND  HIS  SCHOOL 

p  VOLUME  II 


BY 

CHEN  HUAN-CHANG,  Ph.D., 

Chin  Shih  oj 2455  A.  K.  (1904  A.  D.) 

Former  Secretary  of  the  G-rand  Secretariat^ 

Peking^  China 


^Tciu  Dark 
COLUMBIA    UNIVERSITY 

LONGMANS,  GREEN  &  CO.,  AGENTS 

LxjNDON  :  P.  S.  King  &  Son 

191  I 


Copyright,  191  i 

BY 

The  Faculty  of  Political  Science  of 
Columbia  University,  New  York 


r 


!)tb>  ' 


CONTENTS 


VOLUME  II 

PART  III 
PRODUCTION 

BOOK  VI.    BRANCHES  OF  PRODUCTION 

CHAPTER  PAGE 

XX.  Branches  of  Production  in  General 367 

XXI.  Agriculture 380 

XXII.  Industry 398 

XXIII.  Commerce. 411 

BOOK  VII.    DISTRIBUTION 

XXIV.  General  Principles  of  Distribution:  Rent,  Interest  and 

Profits 460 

XXV.     Wages. 480 

BOOK  VIII.    SOCIALISTIC  POLICIES 

XXVI.  The  Tsing  Tien  System 497 

XXVII.  Monopoly  534 

XXVIII.  Exclusion  of  the  Ruling  Class  from  the  Economic  Field  543 

XXIX.  Government  Control  of  Demand  and  Supply 552 

XXX.  Government  Control  of  Grain 568 

XXXI.  Government  Loans  and  Public  Relief 586 

365 


366  CONTENTS 

PART  IV 

PUBLIC  FINANCE 

BOOK  IX.    PUBLIC  FINANCE 

CHAPTER  PAGE 

XXXII.     Public  Expenditures 605 

XXXIII.  Taxation  in  General 621 

XXXIV.  Direct  Taxes 638 

XXXV.     Indirect  Taxes 683 

PART   V 

CONCLUSION 

XXXVI.     Conclusion > 717 

Appendix    I    Table  of  Chinese  Chronology 731 

Appendix  II     List  of  Authorities  in  English  and  Chinese 733 

Index 72>7 


BOOK  VI.  BRANCHES  OF  PRODUCTION 


CHAPTER  XX 
Branches  of  Production  in  General 

i.  the  four  groups  of  people 

Using  the  principle  of  the  division  of  labor  as  a  basis, 
the  Chinese  have  classified  their  people  into  four  groups 
from  a  very  early  period.  Such  a  classification  is  not  a 
caste  system,  but  a  division  of  occupations,  and  it  includes 
all  the  people.  Ku-liang's  Commentary  says:  "  In  the  an- 
cient time  there  were  four  groups  of  people:  there  was  a 
group  of  people  called  students;  there  was  a  group  of 
people  called  merchants ;  there  was  a  group  of  people  called 
farmers;  and  there  was  a  group  of  people  called  artisans."  ^ 
The  definition  of  these  four  groups  is  given  by  Ho  Hsiu. 
He  says : 

First,  those  whose  virtue  enabled  them  to  occupy  the  public 
positions  were  called  students.  Second,  those  who  cultivated 
land  and  produced  grain  were  called  farmers.  Third,  those 
who  finished  the  goods  by  skilful  mind  and  toilsome  hand 
were  called  artisans.  Fourth,  those  who  exchanged  wealth 
and  sold  goods  were  called  merchants.  The  four  groups 
worked  separately  and  the  labor  of  one  group  was  not  taken 
by  the  other  three.     Therefore,  the  wealth  was  sufficient.* 

*  First  year  of  Duke  Ch'eng. 

'  Annotation  of  Kung-yang.  first  year  of  Duke  Ch'eng. 

367 


368       THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

This  was  the  system  of  the  ancients  and  the  sanie  classifi- 
cation is  still  used  now. 

Under  the  influence  of  Confucius,  China  had  no  social 
class  or  caste.  But  by  the  division  of  labor,  she  had,  and 
has,  four  groups  of  people.  In  the  statements  just  quoted 
above  we  may  note  three  points  of  special  significance. 
The  first  is  social  equality.  All  the  four  groups  are  indis- 
criminately called  people,  and  no  group  is  higher  than  the 
others.  The  second  is  that  the  merchant  is  productive  as 
well  as  the  student,  the  farmer  and  the  artisan.  In  the 
Chinese  language  the  order  of  these  four  groups  is  usually 
this:  the  first  is  student,  the  second  farmer,  the  third  arti- 
san, and  the  fourth  merchant.  But,  according  to  Ku-liang's 
Commentary,  the  merchant  is  next  to  the  student.  It  is 
obvious  that  the  Confucians  recognize  the  productivity  of 
the  merchant,  and  that  they  are  not  hostile  to  him,  no  matter 
whether  he  is  put  second  or  fourth  in  order.  The  third  is 
the  principle  of  division  of  labor.  These  four  groups  are 
divided  in  order  to  make  the  productive  power  more  suffi- 
cient; and  the  people  are  not  confined  to  any  given  group, 
but  simply  fall  into  one  through  the  classification  of  occu- 
pations.    These  are  the  essentials  of  this  grouping  system. 

In  ancient  times  there  was  a  static  theory  about  the  four 
groups.  According  to  Kuan  Tzu,  the  sage  kings  settled 
the  students  in  the  quiet  place,  the  artisans  in  the  factory, 
the  merchants  in  the  market-place,  and  the  farmers  in  the 
country.  Each  group  collectively  lived  in  a  special  district 
by  itself  and  attended  to  its  own  business  day  and  night. 
They  practised  their  occupation  when  they  were  young; 
their  minds  were  satisfied;  and  they  did  not  like  to  change 
their  occupations,  even  when  they  saw  strange  things. 
Therefore,  the  teaching  of  their  fathers  and  older  brothers 
was  effective  without  severity,  and  the  learning  of  their 
sons  and  younger  brothers  was  successful  without  difficulty. 


BRANCHES  OF  PRODUCTION  IN  GENERAL 


369 


Hence,  the  sons  of  each  group  usually  took  up  the  occupa- 
tion of  their  fathers.  Therefore,  these  four  groups  should 
live  separately.  Had  they  all  lived  together,  their  talking 
would  be  confused  and  their  business  would  be  changed.^ 
Such  a  theory  was  carried  out  successfully  by  Kuan  Tzu, 
and  it  was  harmonious  with  the  theory  of  the  Confucians. 
In  fact,  the  separation  of  the  four  groups  was  not  for  social 
distinction,  but  for  occupational  specialization. 

Because  the  ancient  Chinese  had  static  economics  in  mind, 
they  thought  that  it  was  a  good  thing  for  people  not  to 
change  their  occupations.  When  Tzu-nang,  prime  minister 
of  Ch'u,  described  the  good  social  conditions  of  Tsin  (27 
B.  K.  or  578  B.  C),  he  said:  "  The  students  of  the  prince 
of  Tsin  vigorously  study  their  lessons :  his  common  people 
attend  diligently  to  agriculture;  his  merchants,  artisans, 
and  servants  know  nothing  of  changing  their  occupations."  ^ 
According  to  this  statement,  Tzu-nang  judged  the  economic 
condition  of  Tsin  by  the  adherence  to  their  occupations  of 
the  four  groups.  Such  a  judgment  is  correct.  For,  if  the 
people  are  not  satisfied  with  their  occupations,  they  must 
change  from  group  to  group.  So  long  as  the  people  can 
remain  in  their  own  group  without  moving,  it  means  that 
they  can  earn  a  living  in  their  group,  and  there  is  no  in- 
ducement offered  by  other  groups.  It  is  a  static  state,  be- 
cause the  four  groups  stand  on  the  same  level  and  the  people 
do  not  want  to  change  their  occupations. 

II.    FREEDOM    OF    OCCUPATION 

Although  by  the  system  of  four  groups,  the  people  are 
divided  up  on  account  of  their  dift'erent  occupations,  there 
is  freedom  of  occupation.     According  to  the  theory  of  the 

'  Narratives  of  Nations,  bk.  vi. 
•  Classics,  vol.  v,  pt.  ii,  p.  440. 


370        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

Confucians,  every  one  should  have  free  choice  of  his  own 
occupation,  and  this  was  the  fact  in  ancient  times.  Men- 
cius  says : 

Is  the  arrow-maker  less  benevolent  than  the  maker  of  armor 
of  defence?  And  yet,  the  arrow-maker's  only  fear  is  lest  men 
should  not  be  hurt,  and  the  armor-maker's  only  fear  is  lest 
men  should  be  hurt.  So  it  is  with  the  priest  and  the  coffin- 
maker.  The  choice  of  a  profession,  therefore,  is  a  thing  in 
which  great  caution  is  required.^ 

According  to  this  statement,  Mencius  refers  to  any  kind 
of  profession,  and  the  arrow-maker,  armor-maker,  coffin- 
maker  and  priest  are  only  examples.  His  essential 
point  is  that  a  man  should  be  careful  to  choose  his  pro- 
fession for  the  development  of  moral  sense.  An  arrow- 
maker  and  a  coffin-maker  are  not  inhumane,  but  their  pro- 
fessions make  them  wish  men  to  die.  Pan  Ku  says  that 
the  reason  those  who  sell  coffins  wish  to  have  an  epidemic 
in  the  year  is  not  because  they  hate  men  and  wish  to  kill 
them,  but  because  their  profit  depends  upon  the  death  of 
men.^     His  idea  is  the  same  as  that  of  Mencius. 

Indeed,  a  profession  can  generally  affect  the  motives  of 
man.  For  this  reason  the  Chinese  still  have  a  general  con- 
ception about  the  choice  of  an  occupation  from  the  stand- 
point of  morality.  Our  discussion  here,  however,  is  not 
from  the  moral  point  of  view,  but  from  the  economic. 
Since  Mencius  teaches  men  to  be  careful  in  choosing  their 
professions,  it  indicates  that  there  is  freedom  of  occupation 
and  every  one  may  make  his  own  choice  freely.  Other- 
wise, if  there  were  no  choice,  how  could  a  man  be  careful 
about  his  choice? 

*  Classics,  vol.  ii,  p.  204. 
'  History  of  Han,  ch.  xxiii. 


BRANCHES  OF  PRODUCTION  IN  GENERAL  371 

Since  there  is  freedom  of  occupation,  a  son  does  not 
necessarily  have  to  follow  in  the  steps  of  his  father.  The 
reason  a  son  usually  takes  up  the  profession  of  his  father  is 
not  because  he  has  no  freedom  of  choice,  but  because  it  is 
easy  for  him  to  do  so.  According  to  the  "  Record  of  Edu- 
cation," a  son  may  usually  change  from  the  occupation  of 
his  father,  simply  because  he  gets  the  education  from  his 
father's  occupation,  but  applies  it  to  another  line.  It  says: 
"  The  son  of  a  good  founder  is  sure  to  learn  how  to  make 
a  fur  robe.  The  son  of  a  good  maker  of  bows  is  sure  to 
learn  how  to  make  a  sieve."  ^  Because  the  founder  melts 
the  different  metals  to  make  a  complete  article,  or  repairs 
the  broken  things  by  fixing  the  metals  on  it,  such  an  art  is 
similar  to  the  making  of  fur  robes  by  putting,  the  different 
pieces  of  fur  together.  Because  the  bow-maker  bends  the 
wood  in  a  good  condition,  it  is  similar  to  the  making  of 
sieves.  Therefore,  when  the  sons  of  the  founder  and  the 
bow-maker  have  familiarly  seen  the  practice  of  their  fathers, 
they  use  similar  principles  for  different  applications.  In  a 
word,  the  sons  utilize  the  occupations  of  their  fathers  as 
the  basis  of  their  education,  but  they  specialize  in  their  own 
occupations.  Therefore,  the  son  does  not  necessarily  suc- 
ceed to  the  profession  of  his  father  and  has  freedom  of 
choice. 

III.    THE    NECESSITY,    JUSTICE    AND    HONOR    OF    WORK 

Confucius  never  holds  in  contempt  any  kind  of  work, 
and  he  thinks  that  work  is  necessary,  just  and  honorable. 
First,  let  us  see  why  work  is  necessary.  The  Canon  of 
History  says :  "  When  the  farmer  labors  upon  the  fields  and 
spends  his  strength  in  reaping,  there  is  then  a  good  harvest. 
.  .  .  When  the  lazy  farmer  yields  himself  to  ease,  and  is 
not  strong  to  toil  and  to  labor  on  his  acres,  he  cannot  have 

'  Li  Ki,  bk.  xvi,  p.  90. 


372        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

either  rice  or  millet."  Therefore,  P'an  Keng  (850-823  B.  K. 
or  1 401 -1 374  B.  C. )  reproved  his  people  by  saying:  "  You, 
the  myriads  of  the  people,  unexpectedly  do  not  know  how 
to  produce  wealth."  And  he  encouraged  them  to  move 
the  capital  city  by  saying:  "  Go!  Produce  wealth  there."  ^ 
Indeed,  the  production  of  wealth  is  the  necessary  business 
of  the  people,  and  they  must  not  be  lazy.  Therefore,  there 
is  a  proverb :  "  The  life  of  the  people  depends  on  diligence ; 
with  diligence  there  is  no  want."  " 

According  to  Confucius,  the  lazy  man  is  very  bad.  He 
says :  "  Hard  is  it  to  deal  with  him  who  will  stuff  himself 
with  food  the  whole  day  without  applying  his  mind  to  any- 
thing. Are  there  not  gamesters  and  chessplayers?  To  be 
one  of  these  would  still  be  better  than  doing  nothing  at 
all."  ^  Confucius  does  not  teach  man  to  be  a  gamester  or 
chessplayer,  but  he  still  thinks  that  they  are  better  than  the 
idler.  Therefore,  either  physical  work  or  mental  work  is 
necessary  for  the  life  of  man. 

Second,  let  us  see  why  work  is  just.     Confucius  says : 

What  the  superior  man  calls  justice,  is  that  noble  and  mean 
all  do  their  work  in  the  world.  The  emperor  himself  ploughs 
the  ground  for  the  rice  with  which  to  fill  the  vessels,  and  the 
black  millet  from  vv^hich  to  distil  the  spirit  to  be  mixed  with 
fragrant  herbs,  for  the  services  of  God ;  and  the  feudal  princes 
are  diligent  in  discharging  their  duties  to  the  emperor.* 

Indeed,  in  the  world  none  should  be  idle.  Even  the  em- 
peror and  the  princes  must  have  to  do  their  work;  it  is 
what  the  superior  man  calls  justice.  In  other  words,  not 
to  work  is  unjust. 

^  Classics,  vol.  iii,  pt.  i,  pp.  226-7,  239,  241. 

'  Classics,  vol.  v,  pt.  i,  p.  318. 

'  Classics,  vol.  i,  p.  329.  *  Li  Ki,  bk.  xxix,  p.  338. 


BRAXCHES  OF  PRODUCTION  IN  GENERAL 


373 


Third,  let  us  find  out  how  work  is  honorable.  Take 
Confucius  for  example.  He  was  a  good  worker.  He  was 
once  keeper  of  granaries,  and  his  calculations  were  all  cor- 
rect. He  was  once  in  charge  of  the  public  fields,  and  the 
oxen  and  sheep  were  fat,  strong,  and  superior.^  Confucius 
worked  in  many  ways,  and  was  famous  on  account  of  his 
various  abilities.  But  he  himself  spoke  of  it  modestly: 
"  W^hen  I  was  young  my  condition  was  low,  and  therefore 
I  acquired  my  ability  in  many  mean  matters."  ^  This  was 
only  a  modest  description  of  himself,  but  it  indicates  that 
he  did  not  think  work  a  dishonor  to  the  w-orker. 

For  the  illustration  of  this  principle  we  may  go  to  Men- 
cius.     He  says : 

Shun  rose  from  among  the  channelled  fields.  Fu  Yiieh  was 
called  to  office  from  the  midst  of  his  building-frames  ;  Chiao  Ko 
from  his  fish  and  salt ;  Kuan  Yi-wu  from  the  hands  of  his 
gaoler ;  Sun-shu  Ao  from  his  hiding  by  the  seashore ;  and  Pai-li 
Hsi  from  the  market-place.  Thus,  when  Heaven  is  about  to 
confer  a  great  work  on  any  man.  it  must  first  exercise  his 
mind  with  suft'ering,  and  his  sinews  and  bones  with  toil ;  ex- 
pose his  body  to  hunger;  subject  him  to  extreme  poverty;  and 
confound  his  undertakings.  By  all  these  methods  it  stimulates 
his  minfl,  liardcns  his  nature,  anrl  supplies  his  incomp>etencies.^ 

According  to  Mencius.  all  great  men  are  developed  by 
hardships.  Therefore,  the  farmer,  the  artisan,  or  the 
merchant  may  become  a  great  emperor  or  a  great  minister. 
His  conclusion  is  this:  **  Life  springs  from  sorrow  and 
calamity,  and  death  from  ease  and  pleasure."     Therefore, 

*  Classics,  vol.  ii.  pp.  383-4.  '  Classics,  vol.  i,  p.  218. 

'  Shun  was  the  best  emperor ;  Fu  Yiieh  and  Chiao  Ko  were  great 
ministers  of  the  Yin  dynasty;  Kuan  Yi-wu  (Kuan  Tzii),  Sun-shu  Ao, 
and  Pai-li  Hsi  were  great  ministers  of  the  states  of  Ch'i,  Ch'u  antl 
Ch'in.     Classics,  vol.  ii,  pp.  446-7. 


374        ^^^  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

we  should  not  dislike  work,  and  should  accept  the  hardship 
with  thankfulness  to  Heaven.  Indeed,  poverty  is  a  con- 
dition under  which  great  men  are  produced,  and  a  man's 
working  does  not  bring  him  any  dishonor  at  all.  Under 
the  influence  of  such  teachings,  the  poor  may  keep  their 
ambitions  even  higher  than  the  rich,  and  workingmen  may 
hold  an  honorable  position  in  society. 

IV.    ABSENCE    OF    SLAVERY 

In  Chinese  history  there  is  a  very  glorious  thing — that  is, 
China  has  never  had  slavery  existing  as  a  general  institu- 
tion. Under  the  tsing  tien  system  every  one  received  one 
hundred  acres  of  land  from  the  government,  so  that  every 
one  was  a  landlord.  Who  would  be  a  slave?  And  how 
could  slavery  come  to  exist?  Since  the  land  was  rich  and 
easily  cultivated,  and  landholding  was  limited  to  one  hun- 
dred acres,  there  was  no  need  of  slaves.  Moreover,  such 
intensive  cultivation  was  not  fitted  to  slave  labor,  and  the  free 
labor  would  not  permit  slavery  to  exist,  under  competition, 
because  there  was  a  large  population.  Furthermore,  China 
has  been  an  agricultural  country,  and  the  Chinese  have  been 
a  diligent  people,  since  the  remotest  times.  Therefore,  they 
made  agriculture  the  fundamental  and  honorable  occupa- 
tion, and  even  the  emperor  took  up  such  work.  The  theory 
that  slavery  becomes  an  institution  most  often  in  the  agri- 
cultural stage  seems  refuted  when  we  study  Chinese  history. 
Slavery  may  have  existed  in  the  prehistoric  period,  but  if 
so  there  is  no  trace  of  it. 

Although  China  had  no  slavery  as  a  general  institution, 
there  were  still  a  few  slaves.  According  to  the  Official  Sys- 
tem of  Chou,  slavery  resulted  from  crime.  But  no  inno- 
cent man  became  a  slave.  It  was  only  a  kind  of  punish- 
ment, and  it  exempted  those  who  had  titles  and  those  whose 
age  was  either  above  seventy  or  below  eight. ^     But  it  was 

^  Ch.  xxxvi. 


BRANCHES  OF  PRODUCTION  IN  GENERAL  37- 

not  a  social  or  an  economic  institution.  Hence,  Hsii  Shen's 
Dictionary  defines  the  word  slave  as  the  criminal  of  the 
ancients. 

Such  are  the  facts  of  history.  Now,  we  come  to  the 
teachings  of  Confucius.  According  to  him  and  his  school, 
there  should  be  no  slavery.  The  social  classes  are  five — 
emperor,  princes,  great  officials,  students,  and  common 
people.  The  groups  of  people  are  four — student,  farmer, 
artisan,  and  merchant.  But  there  is  no  such  class  or  group 
as  that  of  slave.  According  to  his  system,  all  the  menial 
work  in  the  family  is  done  by  the  son,  the  daughter  and  the 
daughter-in-law ;  in  society,  by  young  men ;  in  the  govern- 
ment, by  government  employees.  There  is  no  need  of 
slaves.  Take  Confucius  himself  for  example.  He  lived  in 
the  style  of  the  great  official.  Yet  he  had  no  slave,  and 
not  even  a  servant.  The  drivers  of  his  carriage  were  his 
pupils,  such  as  Fan  Ch'ih  and  Jan  Yu.  When  he  em- 
ployed a  boy  as  the  bearer  of  a  visitor's  card,  he  meant 
that  it  should  teach  the  boy  a  lesson.^  Even  for  himself, 
he  said,  "  I  will  take  up  driving  as  a  profession."  -  There- 
fore, Tzu-hsia  taught  his  pupils  to  sprinkle  and  sweep  the 
ground,  to  answer  and  reply,  and  to  advance  and  recede.^ 
These  things  are  the  necessary  lessons  of  a  servant,  but 
Tzu-hsia  took  them  to  teach  his  pupils.  This  shows  that 
everyone  should  learn  the  cluties  of  a  servant,  because  in 
the  ordinary  life  there  was  no  servant.  Confucius  says: 
''Among  all  the  lives  given  by  Heaven  and  Earth,  that  of 
man  is  the  noblest."  *  According  to  the  system  of  Confu- 
cius, there  is  absolutely  no  slavery. 

Although  China  had   no  slavery  before  Confucius,  and 

*  Classics,  vol.  i,  p.  293. 

'  Ibid.,  p.  216.  "  Ibid.,  p.  343. 

*  .Sacred  Books,  vol.  iii,  p.  476. 


-.76        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

although  Confucius'  system  has  no  slavery,  the  economic 
condition  changed  in  the  Ch'in  dynasty.  After  the  tsing 
tien  system  was  destroyed  (202  A.  K.  or  350  B.  C),  con- 
tinuous wars  went  on,  taxes  were  very  heavy,  and  wealth 
was  unequally  distributed,  so  the  poor  people  were  unable  to 
maintain  their  independent  condition.  Hence,  the  market 
of  slaves  was  established,  and  there  was  traffic  in  slaves 
who  came  from  the  kidnapper  and  the  robber.^  Therefore, 
slavery  arose  during  the  Ch'in  dynasty. 

In  347  A.  K.  (205  B.  C),  during  the  war  between  Han 
and  Ch'u,  a  great  famine  occurred,  so  that  the  people  ate 
human  flesh.  Then  Han  Kao  Ti  permitted  the  people  to 
sell  their  sons.  It  was  the  first  time  that  the  people  were 
allowed  to  sell  themselves  as  slaves.  But,  in  350  A.  K.,  when 
Han  Kao  Ti  conquered  Ch'u  and  became  emperor,  he  issued  a 
decree :  "  The  people  who  have  sold  themselves  to  be  slaves 
of  others  on  account  of  famine  are  all  emancipated  as  free 
citizens."  This  shows  that  slavery  was  not  an  institution. 
But  it  was  bad  enough  that  criminals  became  government 
slaves  and  that  the  poor  sold  themselves  as  private  slaves. 
The  slaves,  however,  were  very  few  in  number  and  did  not 
form  a  special  class.  They  should  be  called  servants  rather 
than  slaves.  For  example,  Wei  Ts'ing  (died  in  446  A.  K. 
or  106  B.  C.)  was  a  slave.  But  he  was  later  the  comman- 
der-in-chief of  the  army  which  conquered  the  Huns,  the 
marquis  of  an  honorary  estate  amounting  to  twenty  thou- 
sand two  hundred  families,  and  the  husband  of  the  oldest 
sister  of  Han  Wu  Ti. 

The  first  to  make  a  public  announcement  against  slavery 
was  Tung  Chung-shu.  In  432  A.  K.  (120  B.  C.)  he  peti- 
tioned Wu  Ti  in  the  following  words :  ''  We  should  abolish 
slavery,  and  prevent  the  master  from  killing  the  slave  by 

*  History  of  Han,  ch.  xcix. 


BRAXCHES  OF  PRODUCTION  IX  GEXERAL  t^jj 

arbitrary  oppression."  ^     But  this  proposal  was  not  carried 
out  by  Wu  Ti. 

The  first  to  abolish  slavery  was  Wang  Mang.  Tn  560 
A.  K.  (9  A.  D.)  he  decreed  that  all  slaves  should  be  called 
"  private  dependents."  and  should  not  be  bought  and  sold. 
But  there  was  still  slavery  as  a  punishment.  Since  his  gov- 
ernment was  not  successful,  in  563  A.  K.  he  allowed  the 
people  to  sell  and  buy  the  *'  private  dependents."  - 

The  Confucian  emperor  most  influential  in  the  abolition 
of  slavery  was  Kuang-wu,  whose  reign  was  from  576  to 
608  A.  K.  (25-57  A.  D.).  In  577  he  decreed:  "The 
people  have  formerly  married  their  wives  away  and  sold 
their  sons;  now  they  are  all  allowed  to  go  back  to  their 
parents  if  they  wish.  Who  dares  to  hold  them  shall  be 
punished  according  to  law."  In  581  he  decreed:  "The 
officials  and  the  commons  who,  during  the  time  of  Wang 
Mang,  were  subdued  to  slavery  without  the  accordance  of 
old  law,  are  all  emancipated  to  be  free  citizens."  In  582 
he  decreed :  "  The  officials  and  the  commons  who  became 
slaves  or  inferior  wives,  either  on  account  of  famine  and 
warfare  or  through  the  robbers  of  Sii  Chow  and  Ts'ing 
Chow,  are  all  allowed  either  to  go  or  to  stay,  as  they  please. 
Who  dares  to  hold  them  and  not  give  them  return  shall  be 
punished  by  the  law  of  selling  persons." 

In  the  second  month  of  586  he  decreed :  "  'Among  all  the 
lives  given  by  Heaven  and  Earth,  that  of  man  is  the  noblest.* 
If  anyone  kills  a  slave,  his  crime  cannot  be  less  than  ordi- 
nar\^  murder."  In  the  eighth  month  he  decreed  :  '*  He  who 
dares  to  torture  a  slave  with  fire  shall  be  punished  accord- 
ing to  law,  and  those  who  are  tortured  are  emancipated  as 
free  citizens."  In  the  eleventh  month  he  abolished  the  law 
that  the  slave  who  wounded  any  person  was  to  be  punished 
by  death. 

'  History  of  Han,  ch.  xxiv.  '  Ibid.,  ch.  xcix. 


2^yS       THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

In  587  he  decreed :  "  The  people  of  Lung  ^  and  Shu  ^ 
who  were  captured  and  made  slaves,  whether  those  who 
have  appealed  to  the  courts  or  those  who  have  not  been 
reported  by  the  judges,  are  all  emancipated  to  be  free  citi- 
zens." In  588  he  decreed:  "  Since  the  eighth  year  [583], 
the  people  of  Yi  Chow  ^  who  were  captured  and  made 
slaves  are  all  emancipated  to  be  free  citizens.  Those  who 
depend  on  others  as  inferior  wives  are  all  allowed  to  go 
away  if  they  wish.  Who  dares  to  keep  them  shall  be  pun- 
ished by  the  law  of  capturing  persons,  as  it  has  been  applied 
to  Sii  Chow  and  Ts'ing  Chow."  In  589  he  decreed: 
"  Since  the  eighth  year,  the  slaves  of  Yi  Chow  ^  and  Liang 
Chow,^  who  have  appealed  to  the  local  courts,  are  all  eman- 
cipated to  be  free  citizens.  Those  who  were  sold  need  not 
pay  back  the  price  to  their  owner."'  ^ 

In  Chinese  history,  although  there  were  many  emperors 
who  freed  slaves,  Kuang-wu  was  the  most  important.  He 
decreed  freedom  to  the  slaves  nine  times.  Since  his  reign, 
China  virtually  has  had  no  slaves  at  all.  Some  other  em- 
perors paid  the  price  to  the  slave-owner,  but  he  did  not  do 
so.  He  was  the  Abraham  Lincoln  of  China,  but  he  abol- 
ished slavery  without  civil  war.  In  an  absolute  govern- 
ment, although  the  emperor  can  do  wrong  easily,  he  can 
also  do  good  easily. 

Unfortunately,  during  the  disturbance  of  the  Five  Bar- 
barians (855-990  A.  K.  or  304-439  A.  D.)  and  the  con- 
quest of  the  Tartars  and  the  Mongolians,  slavery  was  in- 
troduced into  China  by  those  barbaric  tribes.  From  the 
Northern  Wei  dynasty  to  the  beginning  of  the  present 
dynasty  (937-2195  A.  K.  or  386-1644  A.  D.),  however, 
the  slaves  were  generally  not  actual  slaves.      They  were 

^  Kansu  province.  ^  Szechuan  province. 

'  History  of  Latter  Han,  ch.  i. 


BRANCHES  OF  PRODUCTION  IN  GENERAL 


379 


mostly  persons  who  pretended  to  be  dependents  of  noble 
or  rich  families  in  order  to  escape  taxes.  At  the  end  of 
2460  (Jan.  1909  A.  D.)  slavery  was  absolutely  abolished 
in  China. 

We  cannot  say  that  China  had  no  slaves  at  all.  But  we 
deny  that  China  had  such  slavery  as  that  of  ancient  Greece 
and  Rome  or  that  of  the  United  States  before  the  Civil  War. 


CHAPTER  XXI 

Agriculture 

i.  importance  of  agriculture 

Basing  our  classification  on  the  system  of  four  groups, 
we  shall  divide  the  branches  of  production  into  three  cate- 
gories— namely,  agriculture,  industry  and  commerce.  Al- 
though the  group  of  students  is  productive  like  the  other 
three  groups,  they  do  not  produce  material  wealth.  There- 
fore we  shall  take  up  the  other  three  groups  first,  discussing 
the  productivity  of  students  later.  ^  Among  these  three 
groups  the  farmers  stand  first;  hence,  we  shall  begin  with 
agriculture.  As  man  is  supported  by  food,  and  food  comes 
from  the  land,  agriculture  is  always  the  primary  occupation. 
And  as  the  land  of  China  is  fitted  to  agriculture,  and  she 
has  had  a  large  population,  the  Chinese  always  attach  the 
chief  importance  to  agriculture.  Therefore,  the  Chinese 
economy  is  mostly  an  agricultural  economy. 

The  importance  of  agriculture  is  indicated  in  the  **  Great 
Model."  We  have  already  seen  that  the  ''  Great  Model  " 
puts  food  and  commodities  as  the  first  and  second  of  the 
eight  objects  of  government.^  For  this  reason  it  says :  '^  It 
is  on  the  basis  of  agriculture  that  the  eight  objects  of  gov- 
ernment can  be  attained."  "  It  is  very  clear  that  the  ''  Great 
Model  "  lays  the  emphasis  on  agriculture,  because  food  is 
the  first  of  the  eight  objects. 

^  See  infra,  pp.  487-8. 
'  See  supra,  p.  50. 

^  Classics,  vol.  iii,  pt.  ii,  p.  324. 

380 


AGRICULTURE  38: 

Since  ancient  times  there  has  been  a  system  of  **  bor- 
rowing field  ".  This  held  contains  one  thousand  acres,  and 
the  emperor  cultivates  it  personally.  As  the  emperor  has 
no  time  to  finish  the  cultivation  of  the  whole  field,  and  so 
borrows  the  labor  of  the  people,  it  is  called  borrowing 
field.  In  276  B.  K.  (827  B.  C),  when  Hsiian  Wang  did 
not  plough  the  borrowing  field,  Duke  Wen  of  Kuo  gave 
him  a  remonstrance.  In  its  beginning,  he  pointed  out  the 
importance  of  agriculture  as  follows : 

The  greatest  business  of  the  people  is  agriculture.  From  agri- 
culture, the  millet  which  is  used  for  the  sacrifice  to  God  is 
produced ;  the  density  of  population  grows ;  the  expense  of  the 
businesses  is  supplied ;  social  harmony  and  peace  arise ;  the 
multiplication  of  wealth  begins ;  and  the  characters  of  hon- 
esty, great-mindedness,  integrity  and  solidity  become  a  general 
habit  of  the  people.^ 

According  to  the  Record  of  Rites,  in  the  first  month,  the 
emperor  selects  a  good  day,  puts  the  plough  in  his  own 
carriage,  and  conducts  his  three  ducal  ministers,  nine  high 
ministers,  the  feudal  princes,  and  his  great  officials,  for  the 
personal  cultivation  of  the  ''borrowing  field."  The  em- 
peror ploughs  the  land  three  times,  each  of  the  ckical  min- 
isters five,  and  the  other  ministers  and  feudal  princes  nine.' 
This  system  is  significant  from  two  points  of  view.  In  the 
first  place,  it  touches  religion.  The  '*  Principles  of  Sacri- 
fices "  says  that  this  system  is  for  the  service  of  Heaven. 
Earth,  the  spirits  of  the  land  and  grain,  and  the  ancestors, 
because  the  new  wine,  cream,  and  vessels  of  grain  are  made 
from  the  products  of  the  borrowing  field.  This  procedure, 
then,  is  a  great  expression  of  reverence.^      It  is  significant. 

*  Narratives  of  Nations,  bk.  i. 

'  Li  Ki.  bk.  iv.  pp.  254-5.  •"'  Jbid.,  bk.  xxi,  p.  222. 


382        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

too,  from  the  economic  viewpoint.  The  emperor,  honor- 
able as  he  is,  ploughs  the  field  personally;  it  is  an  encour- 
agement of  agriculture.  To-day  this  system  still  exists, 
and  the  emperor  and  his  representatives  all  perform  this 
service  throughout  the  provinces.  This  shows  well  the 
importance  ascribed  to  agriculture. 

In  the  28th  year  of  the  reign  of  Duke  Chuang  the  Spring 
and  Avitumn  records :  "  There  is  greatly  no  wheat  and  rice." 
This  means  that  there  was  a  great  famine.  In  432  A.  K. 
(120  B.  C.)  Tung  Chung-shu  said  to  Han  Wu  Ti : 

The  Spring  and  Autumn  does  not  record  any  other  grain. 
But,  when  wheat  and  rice  have  no  crop,  it  records  them.  By 
this  statement  it  shows  that  the  Holy  Man  gives  the  greatest 
importance  to  wheat  and  rice  among  the  five  grains.^  Now, 
the  people  of  the  metropolitan  province  ^  have  a  custom  of 
disliking  to  plant  wheat.  It  loses  annually  what  the  Spring 
and  Autumn  regards  as  important,  and  diminishes  the  nour- 
ishment of  the  people.  I  wish  your  Majesty  graciously  to  de- 
cree that  the  Minister  of  Agriculture  order  the  people  of  this 
province  to  plant  more  wheat  without  delay.^ 

This  proposal  was  carried  into  effect.  Thus  we  see  the 
theory  of  Confucius  put  into  practice. 

All  the  Confucians  are  in  favor  of  agriculture,  and  it  is 
needless  to  quote  all  their  words  on  the  subject.  During 
the  Han  dynasty  there  was  a  popular  theory  that  the  great 
profit  of  the  world,  in  last  analysis,  is  ascribable  to  agri- 
culture. In  urging  the  importance  of  agriculture,  Chao  Tso 
speaks  strongly.  He  says  that  poverty  comes  from  in- 
sufficiency of  food,  and  insufficiency  of  food  from  the 
neglect  of  agriculture.     When  the  people  neglect  agricul- 

^  The  five  grains  are  rice,  millet,  panicled  millet,  wheat  and  pulse. 

'  Shensi  province. 

'  History  of  Han,  ch.  xxiv. 


AGRICULTURE  383 

ture,  they  do  not  become  attached  to  the  land.  If  they  are 
not  attached  to  the  land,  they  leave  their  families  and  towns 
carelessly,  like  birds  and  animals.  Hence,  emigration  takes 
place.  Then  he  makes  a  comparison  between  the  pearl, 
jade,  gold  and  silver,  and  the  grain,  rice,  cloth  and  silk, 
and  says  that  a  wise  ruler  should  value  grain  more  highly 
than  gold  and  jade.  His  conclusion  is  this:  the  most  im- 
portant thing  is  to  direct  the  people  to  work  earnestly  in 
agriculture.  For  this  direction,  the  grain  must  be  valued 
highly:  and  the  policy  of  giving  high  value  to  grain  is  to 
make  the  grain  an  object  of  reward.  Therefore,  the  gov- 
ernment should  order  the  people  to  turn  over  their  grain 
to  the  government.  If  the  people  do  so,  they  may  either 
get  honorable  titles  or  be  relieved  from  punishment.  In 
this  way  the  rich  can  receive  titles  and  the  farmer  can  make 
more  money  by  the  increasing  demand  for  grain.  Since 
those  who  can  send  grain  to  the  government  for  the  re- 
ceiving of  titles  must  be  the  rich,  if  the  state  takes  the 
superabundance  from  them  for  its  expenditure,  the  taxes 
of  the  poor  can  be  reduced.  This  may  be  said  to  be  dimin- 
ishing superabundance  to  relieve  insufficiency.  The  results 
of  this  policy  will  be  three:  to  make  public  expenditure 
sufficient,  to  reduce  taxation,  and  to  encourage  agricultural 
industry.  This  is  the  policy  of  Chao  Tso,  and  it  was  car- 
ried out  very  successfully  by  Han  Wen  Ti.  Although 
Chao  Tso  does  not  understand  the  law  of  diminishing  re- 
turns since  he  says  that  the  grain  which  is  produced  by  the 
people  will  grow  in  the  land  without  deficiency,  his  whole 
essay  has  had  a  great  influence  in  emphasizing  the  import- 
ance of  agriculture.^ 

II.    AGRICULTURE    NOT   THE   ONLY    PRODUCTIVE   OCCUPATION 

Although  Confucius  thinks  that  agriculture  is  most  im- 
^  History  of  Han,  ch,  xxiv. 


384 


THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 


portant  so  far  as  food  is  concerned,  he  does  not  think  that 
every  one  should  be  a  farmer,  and  that  besides  agriculture 
there  is  no  productive  labor.  To  prove  this  point  there  is 
a  case  in  the  Analects.  One  day  Fan  Ch'ih  requested  Con- 
fucius to  teach  him  husbandry.  He  said :  "  I  am  not  so 
good  for  that  as  an  old  husbandman."  Then  Fan  re- 
quested Confucius  to  teach  him  gardening.  He  replied  :  ''  I 
am  not  so  good  for  that  as  an  old  gardener."  ^  Although 
Confucius  had  shown  his  disapproval  of  Fan  Ch'ih's  learn- 
ing agriculture  by  these  two  answers,  yet  he  was  still  afraid 
that  Fan  would  fail  to  understand.  Therefore,  when  Fan 
Ch'ih  had  gone  out,  he  said :  ''A  small  man,  indeed,  is  Fan 
Hsii!"  Then  he  described  the  effect  of  a  good  government 
upon  the  people,  and  his  conclusion  was  that  there  is  no 
need  of  the  knowledge  of  husbandry.  Confucius  said  this, 
intending  that  it  should  be  repeated  to  Fan  Ch'ih. 

The  reason  Confucius  refused  to  teach  Fan  Ch'ih  agri- 
culture is  that  agriculture  is  an  occupation  of  the  common 
people  only,  and  it  should  not  be  learned  by  the  students. 
Since  the  students  are  the  candidates  for  the  public  offices, 
they  should  learn  how  to  manage  the  government  and  how 
to  influence  the  people,  but  they  should  not  learn  how  to 
practise  agriculture.  Moreover,  as  Confucius  was  a  great 
reformer,  and  Fan  Ch'ih  was  his  pupil,  why  should  he  ask 
him  about  such  a  small  thing  as  agriculture?  It  indicated 
that  the  ambition  of  Fan  was  not  higher  than  to  become  a 
farmer.  Therefore,  Confucius  pointed  out  the  great  in- 
fluence of  a  good  government  affecting  the  people,  and  said 
that  agriculture  is  not  a  necessary  thing  for  a  student.  In 
short,  Confucius  taught  Fan  Ch'ih  politics  instead  of  agri- 
culture. Therefore,  according  to  Confucius,  agriculture  is 
the  profession  of  only  one  of  the  four  groups  of  people, 

*  From  this  conversation  we  know  that  there  was  the  science  of  agri- 
culture.    Classics,  vol.  i,  pp.  264-5. 


AGRICULTURE  385 

and  the  student  may  produce  even  more  utility  for  societ} 
than  the  farmer. 

For  this  reason  most  of  the  pupils  of  Confucius  were 
not  farmers.  Take  Tzu-lu,  for  example.  When  he  fol- 
lowed Confucius  and  happened  to  fall  behind,  he  asked  an 
old  farmer.  "  Have  you  seen  my  master?"  The  answer 
was :  '*  Your  four  limbs  are  unaccustomed  to  toil ;  you  can- 
not distinguish  the  five  kinds  of  grain — who  is  your  mas- 
ter?" '  We  may  take  the  words  of  the  old  farmer  as  typical 
of  the  pupils  of  Confucius. 

In  Mencius'  time  there  was  a  founder  of  the  agricul- 
tural school  named  Hsii  Hsing.^  He  pretended  that  he 
studied  the  doctrine  of  Shen  Nung.  He  had  a  large  num- 
ber of  disciples,  "  several  tens  "  in  all.  All  of  them  wore 
clothes  of  haircloth,  and  made  sandals  of  hemp  and  wove 
mats  for  their  living.  His  doctrine  is  this:  A  wise  and 
able  ruler  should  cultivate  the  land  equally  and  along  with 
his  people,  and  eat  the  fruit  of  his  labor.  He  should  pre- 
pare his  own  meals  morning  and  evening,  while  at  the 
same  time  he  carries  on  his  government.  .\  ruler  should 
not  have  granaries,  treasuries,  and  arsenals.  If  he  has 
such  things,  it  is  oppressing  the  people  for  his  own  sup- 
port.^ His  doctrine  is  extremely  democratic,  but  it  is  im- 
practicable, because  it  implies  the  abolition  of  government 
and  advocates  the  universal  application  of  a  communistic 
scheme. 

The  argument  of  Mencius  against  the  doctrine  of  Hsii 
Hsing  is  based  on  the  principle  of  division  of  labor.*  But 
here    we    wish    to    show    simply    that    Mencius    does    not 

*  Classics,  vol.  i,  p.  335. 

'  Hsii  Hsing's  doctrine  might  come  from  Shih  Chiao,  the  teacher  of 
Shang  Yang,  since  Shih  Tzu  advocated  the  same  theory. 

'  Classics,  vol.  ii.  pp.  246-7. 

*  Sec  infra,  pp.  485-6. 


386       THE  ECONOMIC  PRINCIPLE:^  OF  CONFUCIUS 

think  agriculture  alone  productive.  He  makes  use  of  his- 
torical facts  for  the  support  of  his  argument.  For  in- 
stance, he  says :  "  Yii  was  eight  years  away  from  his  home, 
and  though  he  thrice  passed  the  door  of  it,  he  did  not  enter. 
Although  he  had  wished  to  cultivate  the  land,  could  he 
have  done  so  ?"  "  When  the  sages  were  exercising  their 
solicitude  for  the  people  in  this  way,  had  they  leisure  to 
cultivate  the  land  ?"  "  He  whose  anxiety  is  about  his  hun- 
dred acres  not  being  properly  cultivated  is  a  mere  husband- 
man." "  In  their  governing  of  the  empire,  were  there  no 
subjects  on  which  Yao  and  Shun  employed  their  minds? 
There  were  subjects,  only  they  did  not  employ  their  minds 
on  the  cultivation  of  the  land."  ^  Thus  we  see  that  Men- 
cius  believes  that  public  officers  also  are  producers  and  that 
they  should  not  take  up  the  work  of  a  farmer. 

III.    METHODS    OF    AGRICULTURE 

In  describing  the  form  of  the  field,  we  have  already  shown 
the  methods  of  agriculture  in  a  general  way.  But  we  must 
now  study  them  in  some  detail.  The  chief  feature  is  the 
system  of  "  alternative  fields."  It  was  a  very  old  system, 
Hou  Chi,  the  minister  of  agriculture  of  Emperor  Yao 
(about  1732  B.  K.  or  2283  B.  C),  being  the  one  who  in- 
vented it.  As  the  acre  was  six  feet  wide  and  six  hundred 
feet  long,  the  system  of  alternative  fields  was  to  make  three 
low  lines  within  one  acre.  The  low  line  was  made  by  two 
ploughshares,  and  was  a  foot  wide  and  deep  and  as  long 
as  the  acre.  In  the  field  of  one  hundred  acres  there  were 
three  hundred  low  lines,  and  parallel  with  them  were  three 
hundred  high  lines.  The  seed  was  sowed  into  the  low 
line,  and  the  blade  sprang  up.  When  the  grass  of  the  high 
line  was  weeded  out,  the  soil  of  the  high  line  was  put  down 

'  Classics,  vol.  ii,  pp.  251-3. 


AGRICULTURE  387 

to  the  low  one,  in  order  to  protect  the  root  of  the  blade. 
In  every  time  of  weeding  the  root  was  protected  by  the  ad- 
ditional soil.  Such  a  process  was  repeated  and  repeated : 
hence,  the  low  line  gradually  became  higher  and  the  high 
line  lower.  By  summer  the  high  line  had  disappeared,  and 
the  root  was  very  deep.  Therefore,  the  grain  was  able  to 
stand  against  the  wind  and  drought. 

The  reason  this  system  was  called  alternative  fields  was 
this:  since  there  were  three  low  lines  and  three  high  lines 
within  one  acre,  the  low  one  and  the  high  one  were  alter- 
nated every  year.  Therefore,  the  power  of  the  soil  was 
annually  recovered  and  the  crop  was  very  good.  In  463 
A.  K.  (89  B.  C.)  this  old  method  was  put  in  practice  again, 
and  the  annual  harvest  of  the  alternative  fields  exceeded  that 
of  those  fields  which  were  not  alternative  by  more  than  one 
bushel  to  every  acre.  If  this  method  was  properly  em- 
ployed by  a  good  farmer,  the  surplus  doubled  this  amount.^ 

The  second  feature  is  cultivation  by  pairs.  As  the 
ploughshare  made  of  metal  was  eleven  inches  long  and  five 
inches  wide,  the  cultivation  of  land  was  carried  on  by  two 
men  using  two  ploughshares.  Since  the  strength  of  one 
man  was  sufficient  for  one  ploughshare,  why  should  the 
cultivation  be  carried  on  by  two?  It  was  because  the  co- 
operative labor  of  two  men  was  better  than  the  individual 
power.  This  method  also  was  invented  by  Hou  Chi.  The 
Canon  of  Poetry  says:  "Attend  to  your  cultivation,  with 
your  ten  thousand  men  all  in  pairs."  Again  it  says:  "  In 
thousands  of  pairs  they  remove  the  roots."  "  According  to 
the  Official  System  of  Chou  '  and  the  Record  of  Rites  * 

'  History  of  Han,  ch.  xxiv. 

'  Classics,  vol.  iv,  pt.  ii,  pp.  584,  600. 

'  Ch.  XV. 

*  Li  Ki,  zV..  iv,  p.  308. 


:j^8        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

there  was  a  local  officer  to  arrange  the  pairs  in  the  twelfth 
month.  Such  an  arrangement  was  to  equalize  their  ages 
and  physical  conditions.  In  Confucius'  time  this  method 
still  existed.  The  Analects  says  that  Chang-chii  and  Chieh- 
ni  were  cultivating  in  a  pair.^  This  method  lasted  during 
the  Han  dynasty. 

The  third  feature  is  the  ploughing  with  oxen.  Accord- 
ing to  the  Canon  of  Mountains  and  Seas,  this  method  was 
invented  by  the  grandson  of  Hou  Chi,  whose  name  was 
Shu-chiin.  In  Confucius'  time  this  method  prevailed. 
Among  his  pupils,  one  was  named  Jan  Keng,  and  his  desig- 
nation was  Po-niu;  another  was  named  Ssu-ma  Keng,  and 
his  designation  was  Tzu-niu.  Jan  and  Ssu-ma  were  family 
names,  and  Keng  meant  cultivation.  Since  there  was  a 
connection  between  cultivation  and  the  ox,  they  both  used 
the  word  Niu  for  their  designations,  because  Niu  meant 
ox.  Moreover,  Confucius  himself  spoke  of  "  the  calf  of  a 
ploughing  cow."  ^  Therefore,  the  Chinese  began  to  em- 
ploy the  ox  or  cow  for  ploughing  a  long  time  ago,  but  they 
still  do  the  same  to-day.  They  very  seldom  employ  the 
horse  for  this  purpose. 

The  fourth  feature  is  the  application  of  agricultural  chem- 
istry. According  to  the  Oificial  System  of  Chou,  there  are 
nine  kinds  of  soils.  The  different  seeds  are  chosen  to  fit  the 
different  soils.  The  bones  of  different  animals  are  boiled 
and  their  juice  is  discriminate^  used  to  soak  the  different 
seeds  for  the  different  soils;  or  the  bones  are  burned  and 
their  ashes  are  put  on  different  soils."'' 

The  fifth  feature  is  the  two-crop  system.  We  do  not 
know  when  this  system  began,  but  we  find  a  statement 
given  by  Hsun  Tzu.       He  says :  *'  Now,  the  land  is  pro- 

*  Classics,  vol.  i,  p.  323-  ^  Classics,  vol.  i,  p.  t.86. 

Ch.  xvi. 


AGRICULTURE  389 

ducing  the  five  grains.  If  man  cultivates  it  well,  each  acre 
will  yield  several  bushels,  and  he  will  reap  the  harvest  twice 
in  one  year."  '  Although  the  two-crop  system  might  not 
have  prevailed  over  the  whole  empire  on  account  of  dif- 
ferent climates  and  soils,  it  was  a  great  advance. 

All  these  five  things  are  most  important  methods  of  the 
ancient  Chinese. 

IV.    EXTENSn'E    AND    INTENSIVE    CULTIVATION 

For  the  cultivation  of  land  there  are  two  methods,  ex- 
tensive and  intensive.  If  the  land  is  poor,  the  farmer  must 
cultivate  a  larger  area  than  if  it  is  good,  in  order  to  get 
the  same  return.  This  is  extensive  cultivation.  If  the 
land  is  good,  he  may  cultivate  it  intensively  by  using  more 
labor  and  capital  on  a  smaller  area,  getting  the  same  re- 
turn. This  is  intensive  cultivation.  The  margin  of  ex- 
tensive cultivation  is  determined  by  the  imaginary  boundary 
beyond  which  the  land  is  not  fitted  to  be  used  at  all.  The 
margin  of  intensive  cultivation  is  determined  by  the  law  of 
diminishing  returns.  In  a  static  condition,  the  productivity 
of  labor  and  capital  at  these  two  margins  will  be  equal. 

For  the  extensive  cultivation,  there  is  a  theory  given  by 
Chia  K'uei  (581-652  .\.  K.  or  30-101  A.  D.),  commentator 
of  Tso's  Commentary.'^  He  divides  the  land  into  nine 
kinds,  and  takes  the  best  kind  as  the  standard.  In  the  best 
kind  of  land,  which  is  rich  and  plain,  one  fu,  100  acres,  is 
the  unit;  and  nine  fu  is  one  tsing.  Now.  if  you  measure 
all  the  other  eight  kinds  of  land  by  the  extent  of  nine  fu, 
900  acres,  the  differences  will  be:  in  the  second  kind,  which 
is  low  and  wet,  nine  fu  is  a  ;;/».  and  two  mu  equal  one 
tsing:  in  the  third  kind,  the  land  between  the  dikes,  nine  fu 
is  a  ting,  and  three  ting  equal  one  fsin^i^:  in  the  fourth  kind. 

^  Bk.  X.  "  Classics,  vol.  v.  pi.  ii.  ]>.  517. 


390        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

the  low  land  with  water,  nine  fu  is  a  ktiei,  and  four  kuci 
equal  one  tsing ;  in  the  fifth  kind,  the  land  having  sand  and 
small  stones,  nine  fu  is  a  shu,  and  five  shu  equal  one  tsing ; 
in  the  sixth  kind,  poor  and  salt,  nine  fu  is  a  piao,  and  six 
piao  equal  one  tsing;  in  the  seventh  kind,  the  hills,  nine  fu 
is  a  />f^n^  and  seven  pien  equal  one  tsing ;  in  the  eighth  kind, 
the  marshes,  nine  fu  is  a  cAiw,  and  eight  chiu  equal  one 
tsing;  in  the  ninth  kind,  the  wooded  mountains,  nine  fu  is 
a  tu,  and  nine  fw  equal  one  tsing.  These  nine  kinds  of  land 
are  the  classification  for  the  land  tax,  but  they  represent  at 
the  same  time  the  different  degrees  of  extensive  cultivation. 
One  tsing  of  the  best  land  is  the  standard ;  and  if  we  want 
to  get  the  same  return  from  the  lower  grades  of  land  as 
that  from  the  best,  we  must  extend  our  cultivation  over  an 
area  from  two  to  nine  times  as  great.  The  poorer  the  land, 
the  larger  must  be  its  area. 

Such  a  mathematical  calculation  is  only  a  general  theory 
and  cannot  be  the  exact  measure  of  the  value  of  the  land. 
Yet  it  was  the  classification  of  the  land  tax  of  Ch'u  (4  A.  K. 
or  548  B.  C. ).  Since  Ch'u  was  a  new  country  in  southern 
China  where  the  land  was  plenty  but  poor,  extensive  culti- 
vation would  prevail.  In  the  Middle  Kingdom,  the  China 
proper  of  the  ancient  times,  the  land  was  good,  and  the 
population  was  dense;  hence,  there  was  intensive  cultiva- 
tion. Taking  ancient  China  as  a  whole,  cultivation  was 
mostly  intensive,  because,  under  the  tsing  tien  system,  one 
family  cultivated  only  one  hundred  acres. 

According  to  Mencius  and  the  "  Royal  Regulations," 
intensive  cultivation  is  this :  When  a  farmer  cultivates  one 
hundred  acres  of  land,  together  with  some  capital,  such  as 
manure,  he  gets  different  amounts  of  return  from  the  land 
according  to  the  intensity  of  his  cultivation.  If  he  is  the 
best  farmer,  the  return  can  support  nine  persons;  next  to 
the  best,  eight  persons;  if  he  is  an  ordinary  farmer,  seven 


AGRICULTURE 


391 


persons;  next  to  the  ordinary  one,  six  persons;  if  he  is  a 
poor  farmer,  it  can  support  only  five  persons/  In  this  case 
there  is  a  certain  area  of  land  connected  with  a  certain 
number  of  men.  And  yet  the  amount  of  return  from  the 
one  hundred  acres  of  land  cultivated  by  one  farmer  varies. 
These  differences  come  from  the  differences  of  cultivation. 
In  fact,  the  amount  of  return  is  determined  by  the  degree 
of  intensity.  However,  why  cannot  the  best  farmer  get 
more  return  than  support  for  nine  persons  by  putting  more 
labor  and  capital  in  the  one  hundred  acres  of  land?  Be- 
cause land  is  subject  to  the  law  of  diminishing  returns. 
Therefore,  support  for  nine  persons  is  the  intensive  margin 
of  cultivation. 

The  theory  of  intensive  cultivation  was  put  into  practice 
very  successfully  by  Li  K'o.  His  theory  is  called  ''  the  doc- 
trine of  exhausting  land  power."  It  is  something  like  this: 
Within  an  area  one  hundred  miles  square,  there  are  nine 
million  acres.  Taking  away  the  mountains,  marshes  and 
city  residences,  one-third  of  this  amount,  there  are  six  mil- 
lion acres  of  cultivable  land.  If  the  people  cultivate  it  in- 
tensively, each  acre  can  yield  three  additional  pecks  (ton) 
of  grain.  Therefore,  even  within  an  area  one  hundred 
miles  square,  the  difference  between  an  addition  and  a  loss 
of  grain  will  be  one  million  eight  hundred  thousand  bushels 
(shih).  When  this  doctrine  was  applied  to  Wei,  the  state 
became  rich  and  strong.^  But  why  did  Li  K*o  not  say  that 
the  addition  of  grain  per  acre  would  be  more  than  three 
pecks  if  the  cultivation  should  be  still  more  intensive?  Be- 
cause land  is  subject  to  the  law  r)f  diminishing  returns. 
Therefore,  according  to  Li  K*o,  the  additional  amount  of 
three  pecks  of  grain  is  the  intensive  margin  of  cultivation. 

^Classics,  vol.  ii,  p.  376;  /,/  Ki.  hk.  iii,  p.  210. 
'  History  of  Han,  ch.  xxiv. 


392        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 
V.    DIMINISHING    RETURNS 

For  the  law  of  diminishing  returns,  the  Chinese  do  not 
give  a  complete  principle.  Yet  they  point  out  the  facts. 
Han's  External  Commentary  of  the  Canon  of  Poetry  says : 
"  The  produce  of  the  land  cannot  be  increased,  and  the 
yielding  of  the  mountains  and  marshes  can  be  exhausted."  ^ 
The  first  part  of  the  sentence  refers  to  agriculture,  and  the 
second  to  natural  resources  in  general.  This  sentence 
shows  a  very  good  apprehension  of  essential  elements  of 
the  law  of  diminishing  returns. 

When  Yeh  Shih  describes  the  evils  of  congestion  of  the 
regions  surrounding  the  capital,^  he  says : 

In  the  over-populated  land,  the  people  dig  the  mountains  and 
dam  the  sea,  picking  out  any  profit  which  is  left.  While  the 
productivity  of  the  land  is  limited,  the  cultivation  of  the  people 
is  endless.  Hence,  it  hurts  the  natural  phenomena  and  in- 
jures the  five  elements.  Therefore,  the  power  of  land  is  ex- 
hausted without  supplying  the  demand  of  men,  and  the  air  be- 
comes dry  without  the  natural  harmony. 

These  are  the  ill  effects  of  over-population  upon  natural 
resources.  In  fact,  the  reason  a  large  population  living  on 
a  small  area  of  land  is  an  economic  evil  is  because  land  is 
subject  to  the  law  of  diminishing  returns,  a  point  shown 
very  clearly  by  Yeh  Shih. 

VI.    AGRICULTURAL    LIFE 

Let  us  study  the  agricultural  life  of  the  ancients  as  a 
whole,  beginning  with  the  earliest  we  can  find.  In  the 
Canon  of  Poetry  there  is  a  poem  written  by  the  people  of 
Pin,  describing  the  economic  life  of  Pin,  at  the  time  of 
Kung  Liu    (about   1245  B.   K.  or   1796  B.   C).     It  was 

^  Bk.  V.  2  See  supra,  p.  303. 


AGRICULTURE  ^g^ 

presented  by  the  Duke  of  Chou  to  the  emperor  as  the  foun- 
dation of  the  Chou  dynasty.  This  poem  is  very  valuable, 
giving  us  a  picture  of  the  actual  life  at  that  time.  There- 
fore we  shall  give  it  fully. 

In  the  seventh  month,  the  Fire  Star  passes  the  meridian; 

In  the  ninth  month,  clothes  are  given  out; 

In  the  days  of  the  [eleventh]   month,  the  wind  blows  cold; 

In  the  (lays  of  the  [twelfth]  month,  the  air  is  cold. 

Without  the  clothes  and  garments  of  hair, 

How  could  we  get  to  the  end  of  the  year? 

In  the  days  of  the  [first]  month,  we  fix  the  ploughs; 

In  the  days  of  the  [second]  month,  we  cultivate  the  fields. 

Together  with  our  wives  and  children, 

We  carry  food  to  those  southern  acres. 

The  surveyor  of  the  fields  comes,  and  is  glad  to  eat  with  us. 

In  the  seventh  month,  the  Fire  Star  passes  the  meridian; 
In  the  ninth  month,  clothes  are  given  out. 
With  the  spring  days  the  warmth  begins. 
And  the  oriole  utters  its  song. 
The  young  women  take  their  deep  baskets, 
And  go  along  the  small  paths. 

Looking  for  the  tender  leaves  of  the  mulberry  trees. 
As  the  spring  days  lengthen  out. 
They  gather  in  crowds  the  white  southernwood. 
When   the  young  ladies'  hearts  are  wounded   with   hardship, 
They  begin  to  have  the  common  idea  witii  the  princesses,   wishing  to 
irarry. 

In  the  seventh  month,  the  Fire  Star  passes  the  meridian  ; 

In  the  eighth  month  are  the  sedges  and  reeds; 

In  the  silkworm  month  we  strip  the  mulberry  branches  of  their  leaver. 

And  take  the  axes  and  hatchets. 

To  lop  off  those  that  are  distant  and  high, 

Only  stripping  the  young  trees  of  their  leaves; 

In  the  seventh  month,  the  shrike  is  heard  : 

In  the  eighth  month,  we  begin  the  spinning  of  flax. 

We  make  dark  fabrics  and  yellow; 

Our  red  manufacture  is  very  brilliant, 

It  is   for  the  lov.er  rol)Cs  of  our  princesses. 


T^qj^        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

In  the  fourth  month,  the  small  grass  is  in  seed; 

In  the  fifth,  the  cicada  gives  out  its  note; 

In  the  eighth,  we  reap; 

In  the  tenth,  the  leaves  fall; 

In  the  days  of  the  [eleventh]   month,  we  go  after  badgers, 

And  take  those  foxes  and  wild  cats, 

To  make  furs  for  our  princesses; 

In  the  days  of  the  [twelfth]  month,  we  have  a  general  hunt, 

And  proceed  to  keep  up  the  exercises  of  war. 

The  boars  of  one  year  are  for  ourselves; 

Those  of  three  years  are  offered  to  our  lord. 

In  the  fifth  month,  the  locust  moves  its  legs; 

In  the  sixth,  the  spinner  sounds  its  wings; 

In  the  seventh,  in  the  fields ; 

In  the  eighth,  under  the  eaves ; 

In  the  ninth,  about  the  doors ; 

In  the  tenth,  the  cricket  enters  under  our  beds. 

Chinks  are  filled  up,  and  rats  are  smoked  out; 

The  northern  windows  are  stopped  up,  and  the  doors  are  plastered. 

Ah !  our  wives  and  children ! 

That  the  year  is  changing. 

We  enter  these  houses  and  dwell. 

In  the  sixth  month,  we  eat  the  sparrow-plums  and  grapes;        v 

In  the  seventh,  we  cook  the  kuei  and  pulse; 

In  the  eighth,  we  knock  down  the  dates ; 

In  the  tenth,  we  reap  the  rice, 

And  make  the  spirits  for  the  spring. 

For  the  benefit  of  the  bushy  eyebrows; 

In  the  seventh  month,  we  eat  the  melons; 

In  the  eighth,  we  cut  down  the  bottle-gourds; 

In  the  ninth,  we  collect  the  hemp-seed; 

We  gather  the  sowthistle  and  make  firewood  of  the  fetid  tree, 

To  feed  our  husbandmen. 

In  the  ninth  month,  we  prepare  the  vegetable  gardens  for  the  stacks; 

And  in  the  tenth,  we  convey  the  sheaves  to  them, 

The  millets,  both  the  early  sown  and  the  late, 

With  the  rice,  the  hemp,  the  pulse,  and  the  wheat. 

O,  our  husbandmen. 

Our  harvest  is  all  collected. 

Let  us  go  to  the  town,  and  be  at  work  on  our  homes, 


AGRICULTURE  395 

In  the  day  time  collect  the  grass, 

And  at  night  twist  it  into  ropes, 

Then  repair  quickly  our  houses  in  the  fields. 

For  we  shall  have  to  recommence  our  sowing. 

In   the  days  of  the    [twelfth]    month,   we  hew   out  the   ice   with  har- 
monious blows; 
And  in  those  of  the  [first]  month,  we  convey  it  to  the  ice-houses, 
Which  we  open  in  those  of  the  [second]  month,  early  in  the  morning, 
Having  offered  in  sacrifice  a  lamb  with  scallions. 
In  the  ninth  month,  it  is  cold,  with  frost; 
In  the  tenth  month,  we  sweep  clean  the  stack-sites. 
Every  two  bottles  of  spirits  are  arranged  for  the  public  banquet; 
The  lambs  and  sheep  are  killed. 
We  go  to  the  public  school. 
Where  we  raise  the  cup  of  rhinoceros  horn, 
And  wish  our  lord  long  life, — that  he  may  live  forever.^ 

This  poem  is  a  description  of  the  economic  life  of  the 
ancient  Chinese.  The  first  stanza  covers  all  the  ideas  of 
the  whole  poem,  and  the  other  seven  stanzas  give  the  de- 
tails. The  most  important  things  of  economic  life  are  food 
and  clothes.  The  former  is  produced  by  the  labor  of  men, 
and  the  latter  by  that  of  -women.  The  different  kinds  of 
grain  are  the  principal  articles  of  food,  and  the  vegetables 
and  fruits  are  auxiliary.  The  silk  and  flax  are  the  principal 
materials  of  clothes,  and  the  furs  are  auxiliary.  These 
two,  food  and  clothes,  are  the  chief  subjects  of  this  poem. 
Besides  the  economic  life,  all  the  family  life,  social  life,  and 
political  life  are  indicated  by  this  poem.  In  fact,  it  pic- 
tures the  golden  age  of  the  ancients. 

In  the  beginning  of  the  Han  dynasty  there  was  a  policy 
of  suppressing  the  merchants  for  the  encouragement  of  the 
farmers.  Yet  the  condition  of  the  farmers  was  very  bad. 
and  the  merchants  took  advantage  of  them.  Chao  Tso 
says: 

'  Classics,  vol.  iv,  pt.  i.  pp.  226-233. 


396       THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

Now,  if  a  farmer  has  a  family  of  five  persons,  the  mimber  for 
serving  at  pubHc  labor  is  not  less  than  two  persons.  But  the 
land  which  he  can  cultivate  is  no  more  than  one  hundred  acres, 
and  the  harvest  of  one  hundred  acres  can  be  no  more  than 
one  hundred  bushels  of  rice.  In  spring,  he  cultivates  the  land ; 
in  summer,  weeds  the  field ;  in  autumn,  gathers  the  harvest ; 
in  winter,  stores  up  the  grain.  H^  cuts  the  woods,  repairs  the 
public  buildings,  and  serves  the  public  labor.  He  cannot 
escape  from  the' wind  and  dust  in  spring,  nor  the  heat  in  sum- 
mer, nor  the  soaking  rain  in  autu«nn,  nor  the  cold  in  winter. 
Within  the  four  seasons  he  does  not  have  a  day  of  rest.  More- 
over,  he  must  pay  the  expense  for  the  commg  and  gomg  of 
his  guests,  the  funeral  and  sickness  of  his  friends,  and  the 
nourishment  and  bringing-up  of  his  children.  Working  hard 
as  he  does,  he  still  suffers  from  the  calamities  of  flood  and 
drought,  and  from  oppressive  government  and  uncertain  taxa- 
tion, which  is  different  from  morning  to  evening.  When  he 
has  goods,  he  is  compelled  to  sell  them  at  half  price ;  when  he 
has  nothing,  he  must  borrow  money  at  the  rate  of  one  hun- 
dred per  cent.  Therefore,  among  the  farmers  there  are  those 
who  liquidate  their  debts  by  selling  their  farms  or  houses,  their 
sons  or  grandsons. 

On  the  other  hand,  the  great  merchants  accumulate  money 
and  get  interest  at  the  rate  of  one  hundred  per  cent;  and  the 
small  ones  sell  goods  in  the  market.  They  control  extraordi- 
nary profit,  and  speculate  around  the  market  day  by  day. 
Taking  advantage  of  any  immediate  demand  of  the  govern- 
ment, they  raise  their  price  to  double.  Therefore,  although 
their  men  do  not  cultivate  and  weed  the  land,  nor  their  women 
take  up  the  silkworm  and  weaving,  their  clothes  must  be  of 
beautiful  silk,  and  their  food  must  be  the  best  rice,  together 
with  meat.  Without  the  hardship  of  the  farmer,  they  secure 
hundreds  or  thousands  of  large  coins.  On  account  of  their 
wealth,  they  connect  themselves  with  the  princes  and  mar- 
quises. Their  power  is  even  greater  than  the  influence  of  the 
officials,  and  they  control  society  by  money.  Traveling  over 
thousands  of  miles  in  a  great  style,  their  carriages,  horses,  hats 


AGRICULTURE 


397 


and  shoes  all  are  of  the  first  grade.  Such  a  condition  is  the 
reason  the  merchants  can  crush  the  farmers,  and  the  reason 
the  farmers  emigrate.  To-day  the  law  dishonors  the  mer- 
chants, but  they  are  rich  and  honorable  already;  it  honors  the 
farmers,  but  they  are  poor  and  mean  already.^ 

From  the  end  of  the  Chou  dynasty  to  the  beginning  of 
the  Han  dynasty,  economic  life  was  dynamic.  Hence,  the 
condition  of  the  farmers  was  much  worse  than  that  of  the 
merchants.  What  Chao  Tso  described  referred  to  the  be- 
ginning of  Han,  but  it  was  true  at  the  end  of  Chou.  Such 
a  condition  began  about  the  time  of  Confucius  and  it  pre- 
vailed about  the  time  of  Mencius.  But,  since  the  policy  of 
Chao  Tso  ^  was  carried  out  by  Han  Wen  Ti,  the  condition 
of  the  farmers  was  greatly  improved,  and  during  his  reign 
and  that  of  his  son  (373-411  A.  K.  or  1 79-141  B.  C.) 
there  was  a  golden  age.  In  fact,  this  period  was  one  of 
national  prosperity  based  upon  agriculture,  and  it  was  the 
result  of  encouraging  agriculture. 

^  History  of  Hau,  ch.  xxiv. 
2  See  supra,  p.  360. 


CHAPTER  XXII 
Industry 

The  occupation  of  the  group  of  artisans  is  industry. 
By  industry,  we  mean  the  making  of  things  by  the  power  of 
man.  The  word  handicraft  gives  the  exact  meaning,  but 
we  are  obliged  to  use  the  word  industry.  In  the  Chinese 
language,  the  word  kung  really  means  industry,  although 
the  industry  of  the  ancients  was  done  by  hand.  Therefore 
we  cannot  use  the  word  handicraft  in  place  of  the  word 
kimg.  If  we  do  so,  it  means  that  we  must  put  the  word  shou 
before  the  word  kung,  "hand  industry;"  and  such  a  term 
will  change  the  sense  of  the  word  kung  from  a  general  and 
abstract  sense,  which  can  be  applied  to  all  ages,  to  a  narrow 
and  definite  meaning,  which  is  fitted  only  to  the  ancient 
time. 

I.    IMPORTANCE   OF  INDUSTRY 

The  importance  of  industry  is  indicated  by  Confucius 
himself.  As  we  have  seen,  among  the  nine  standard  rules 
of  a  government,  he  says :  "  By  inducing  all  classes  of  arti- 
sans to  come  in,  wealth  is  made  sufficient."  ^  Therefore,  if 
a  government  wishes  to  make  the  national  wealth  sufficient, 
it  must  welcome  all  classes  of  artisans,  because  they  are  the 
industrial  workmen.  It  is  industry  alone  that  can  produce 
new  wealth,  at  all  independent  of  nature.  Industry  can  pro- 
duce wealth  in  greater  degree  and  more  easily  than  agricul- 
ture.   Hence  Confucius  does  not  mention  agriculture  in  the 

1  See  supra,  p.  318. 
398 


INDUSTRY 


399 


nine  standard  rules.  Commerce  can  only  add  to  the  utility 
of  the  existing  wealth ;  industry  produces  new  items  of 
wealth.  Hence  Confucius  ascribes  to  industry  only  the 
power  of  making  wealth  sufficient.  From  this  passage,  it  is 
clear  that  Confucius  thinks  that  industry  is  more  important 
than  both  agriculture  and  commerce. 

The  reasons  the  Chinese  make  agriculture  precede  indus- 
try are,  in  the  first  place,  that  agriculture  supplies  food, 
and  in  the  second  place,  that  it  furnishes  raw  materials. 
Therefore,  in  the  process  of  production,  agriculture  comes 
naturally  before  industry.  But  as  regards  the  efficiency  of 
production,  industry  is  under  the  absolute  control  of  human 
power.  Hence  industry  is  more  important  than  agricul- 
ture. The  reasons  the  Chinese  make  industry  precede  com- 
merce are  still  clearer.  First,  there  can  be  little  if  any  com- 
merce unless  there  is  some  sort  of  industry.  A  good  must 
be  finished  in  the  workshop  before  it  can  go  to  the  market 
for  sale.  Therefore,  in  the  process  of  production,  industry 
comes  naturally  before  commerce.  Second,  commerce  is 
only  an  exchange  of  goods  which  have  been  produced,  but 
industry  is  a  creation  of  goods  which  have  never  before  ex- 
isted. Therefore,  as  regards  the  efficiency  of  production, 
industry  has  creative  power  nuich  greater  than  that  of 
commerce.  Hence  industry  is  more  important  than  com- 
merce. Indeed,  agriculture,  industry  and  commerce  are  all 
necessary,  but  industry  is  the  most  important  branch  of  pro- 
duction. 

II.   DIVISIONS  OF  INDUSTRY 

In  ancient  times,  the  kinds  of  industry  must  have  been 
very  few.  But  there  were  still  six  grand  divisions  of  in- 
dustry-. According  to  the  "  Details  of  Rites,"  the  emperor 
had  six  treasuries  for  the  storir.g  of  products,  and  there 
were  six  superintendents  in  charge  of  them.     These  were: 


400 


THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 


first,  the  superintendent  of  the  land;  second,  the  superin- 
tendent of  the  wood;  third,  the  superintendent  of  the 
waters;  fourth,  the  superintendent  of  the  grass;  fifth,  the 
superintendent  of  the  manufactured  articles;  sixth,  the 
superintendent  of  the  mineral  commodities.  At  that  time, 
the  taxes  were  paid  in  kind  much  more  than  in  money. 
Therefore,  the  imperial  government  established  the  six 
treasuries  for  the  keeping  of  the  cifferent  commodities.  All 
the  products  paid  by  the  farmers,  the  foresters,  the  inhabi- 
tants along  the  waters,  the  gardeners,  the  artisans,  and  the 
merchants,  were  stored  up  in  these  six  treasuries.  The 
stores  of  these  six  treasuries  came  from  the  taxes,  but  they 
were  mostly  raw  materials ;  hence,  they  needed  to  be  manu- 
factured. 

On  this  account  there  were  six  imperial  factories.  Hence 
industry  was  divided  into  six  kinds,  and  thus  there  were 
workers  in  earth,  workers  in  metal,  workers  in  stone,  work- 
ers in  wood,  workers  in  the  skins  of  animals,  and  workers 
in  twigs.  These  six  factories  were  for  working  up  the  ma- 
terials of  those  six  treasuries.^  The  reason  the  six  treas- 
uries left  out  metal,  stone,  and  the  skins  of  animals,  was 
because  these  were  included  in  the  manufactured  articles  and 
mineral  commodities.  For  the  same  reason,  the  six  factories 
left  out  the  products  of  the  water,  the  manufactured  articles, 
and  the  mineral  commodities,  because  they  were  included 
in  the  factories  of  metal-workers  and  scone-workers.  The 
six  factories,  however,  did  not  necessarily  correspond  with 
the  six  treasuries  in  details.  For  instance,  the  superin- 
tendent of  the  land  had  charge  of  the  products  of  the  farmer, 
which  might  be  ready  for  consumption,  but  the  factory  of 
earth-workers  was  a  factory  of  pottery.  Therefore,  the  six 
treasuries  were  simply  warehouses  of  the  different  products, 

^  Li  Ki,  bk.  i,  p.  no. 


IXDUSTRV 


40  r 


and  their  goods  were  not  necessarily  turned  over  to  the  six 
factories  for  production.  On  the  other  hand,  the  six  fac- 
tories were  places  for  manufacturing  different  articles,  and 
they  did  not  necessarily  take  their  materials  from  those  six 
treasuries  only.  Of  course,  the  six  factories  had  a  very 
close  connection  with  the  six  treasuries,  but  there  was  no 
exact  correspondence.  The  six  treasuries  and  the  six  fac- 
tories were  the  system  of  the  Yin  dynasty  (12 15-571  B.  K. 
or  1766-1122  B.  C. ).  Hence,  we  know  that  even  at  that 
time  Chinese  industry  was  divided  up  into  six  kinds. 

During  the  Chou  dynasty,  industry  was  highly  developed ; 
yet  there  were  still  six  kinds  only.  According  to  the  "Record 
of  Industry,"  there  are  the  industry  of  wood,  the  industry 
of  metal,  the  industry  of  skin,  the  industry  of  coloring,  the 
industry  of  polishing,  and  the  industry  of  earth.  These  are 
the  grand  divisions  of  industry. 

For  their  sub-divisions,  the  branches  of  the  industry  of 
wood  are  seven — namely,  the  wheelwright,  the  carriage- 
wright,  the  bow-maker,  the  maker  of  the  handle  of  different 
weapons,  the  mason,  the  car-maker,  and  the  carpenter.  The 
branches  of  the  industry  of  metal  are  six — namely,  the 
maker  of  the  knife  (used  as  a  pen),  the  maker  of  different 
weapons,  the  maker  of  bells,  the  maker  of  measures,  the 
maker  of  agricultural  implements,  and  the  sword-maker. 
The  branches  of  the  industry  of  skin  are  five — namely,  the 
maker  of  armors  of  defense,  the  tanner  of  hides,  the  maker 
of  drums,  the  worker  in  leather,  and  the  furrier.  The 
branches  of  the  industry  of  coloring  are  five — namely,  the  de- 
sign-drawer, the  maker  of  embroidery,  the  dyer  of  feathers, 
the  drawer  of  baskets,  and  the  steeper  of  silk.  The  branches  of 
the  industry  of  polishing  are  five — namely,  the  lapidary,  the 
comb-maker,  the  sculptor,  the  arrow-maker,  and  the  maker 
of  musical  stones.  The  branches  of  the  industry  of  earth  are 
two — namely,  the  maker  of  different  pots,  and  the  maker  of 


402        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

different  vessels.  In  the  six  grand  divisions,  four  divisions 
are  based  upon  materials,  such  as  wood  and  metal ;  the  other 
two,  upon  the  nature  of  arts,  such  as  coloring  and  polishing. 
The  total  number  of  the  branches  of  industry  is  thirty,  but 
this  number  is  incomplete.  These  thirty  branches  are  simply 
the  representatives  of  the  prominent  skilled  workmanship, 
and  this  Record  does  not  give  all  the  branches  of  industry 
of  that  time.  Moreover,  there  is  even  a  branch  given  in 
this  Record  which  is  not  included  in  the  thirty  branches; 
the  maker  of  the  shaft  where  the  yoke  for  the  two  inside 
horses  is  attached.  Therefore,  these  thirty  branches  are 
merely  examples. 

All  the  thirty  branches  are  government  factories,  and  are 
controlled  by  officials.  Hence  they  are  subject  to  the  pro- 
motion of  the  government.  Since  the  progress  of  civiliza- 
tion is  from  simplicity  to  complexity,  the  division  of  labor 
follows  the  same  law,  and  the  domination  of  different  in- 
dustries changes  along  this  direction.  Therefore,  in  the  Yii 
dynasty,  the  government  promoted  the  industry  of  pottery ; 
in  the  Hsia,  that  of  masonry ;  in  the  Yin,  that  of  carpentry ; 
and  in  the  Chou,  that  of  carriage-making.  Such  a  gov- 
ernment promotion  simply  followed  the  natural  course.  In 
the  Yii  dynasty,  society  was  simplest ;  hence,  pottery  was  the 
prominent  industry,  because  it  was  the  simplest  form  of  in- 
dustry. In  the  Hsia  dynasty,  when  "  the  great  flood  "  had 
just  been  settled,  there  was  a  great  demand  for  shelter,  and 
the  land  needed  the  system  of  water-channels,  so  the  in- 
dustry of  the  mason  was  prominent.  In  the  Yin  dynasty, 
when  civilization  had  advanced,  and  society  had  demands 
beyond  the  necessaries  of  life,  the  industry  of  the  carpenter 
was  dominant.  According  to  the  "  Record  of  Industry," 
the  works  of  the  carpenter  are:  the  making  of  the  stands 
of  the  musical  instruments,  which  are  carved  with  the  fig- 
ures of  animals ;  the  making  of  drinking-cups ;  and  the  mak- 


INDUSTRY 


403 


ing  of  the  poles  of  the  targets  which  are  for  the  game  of 
archery.  Those  things  are  far  beyond  the  class  of  necessar- 
ies. In  the  Chou  dynasty,  when  the  civilization  was  most 
complex,  and  the  division  of  labor  was  marked,  the  industry 
of  the  carriage-wright  was  dominant.  Among  all  these  in- 
dustries, the  carriage  is  the  chief  thing  which,  although 
itself  a  single  article,  concentrates  many  kinds  of  labor. 
The  wheelwright,  the  carriage-wright,  the  maker  of  the 
shaft,  the  car-maker,  all  are  the  workers  of  a  carriage. 
Since  the  economic  life  of  the  Chou  was  comfortable,  the 
industry  of  the  carriage  was  made  prominent.  In  fact,  the 
government  promotion  of  industr}'  is  harmonious  with  the 
need  of  society  at  large,  and  the  need  of  society  is  harmoni- 
ous with  the  stage  of  civilization.  Therefore,  the  higher 
civilization  is,  the  more  complex  is  industry. 

III.  FOUR  ELEMENTS  OF  INDUSTRY 

According  to  the  "  Record  of  Industry."  industry  depends 
upon  four  things :  the  season  of  the  heaven,  the  climate  of 
the  earth,  the  goodness  of  the  material,  and  the  skill  of  the 
workman.  Combining  these  four  things,  the  article  will  be 
excellent. 

( I )  In  some  seasons,  the  heaven  gives  birth  to  a  thing, 
and  in  some  seasons,  it  kills  it.  In  some  seasons,  the  grass 
and  trees  grow,  and  in  some  seasons,  they  die.  The  stone 
sometimes  dissolves,  as  in  the  hottest  summer;  the  water 
sometimes  freezes,  and  sometimes  flows.  These  are  the 
differences  of  seasons.  For  the  adaptation  to  the  seasons, 
we  may  take  the  bow-maker  as  ?.n  example.  The  materials 
of  a  l)ow  are  six:  the  strip  of  wood,  the  horn  of  the  cow, 
the  sinew  of  the  brash  animals,  the  glue  of  the  cow,  silk 
and  varnish.  The  wood  should  be  taken  in  winter;  the 
horn,  in  autumn;  the  silk  and  varnish,  ir.  summer.  For  the 
making  of  a  bow,   in   winter,  the  strip   is  divided   up:   in 


404        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

spring,  the  horn  is  steeped;  in  summer,  the  sinew  is  made 
ready;  in  autumn,  these  three  materials  are  united  by  the 
glue,  silk,  and  varnish ;  in  winter,  the  bow  is  finished,  and 
its  condition  is  fixed  by  the  cold.  In  short,  the  different 
processes  of  making  a  bow  are  in  harmony  with  the  seasons. 
This  is  an  example  of  the  adaptation  to  the  seasons  of 
heaven. 

(2)  The  knife  of  Cheng,  the  adze  of  Sung  (both  in  the 
province  of  Honan),  the  knife  used  as  a  pen  of  Lu  (Shan- 
tung province),  the  sword  of  Wu  (Kiangsu)  and  Yiieh 
(Chekiang),  all  are  very  famous.  Yet  they  could  not  be 
excellent,  if  they  were  made  of  the  same  materials,  but 
changed  to  other  localities.  Therefore,  any  industry  should 
be  in  harmony  with  the  climate  of  the  earth. 

(3)  The  horn  of  Yen  (Chihli),  the  wood  for  bow  of 
King,  the  wood  for  arrow  of  Hu  (both  in  Hupei  province), 
and  the  metals  and  tin  of  Wu  and  Yiieh,  are  the  materials 
of  superiority.  Therefore,  any  industry  should  take  its 
materials  from  those  places  where  they  are  especially  good 
for  the  industry. 

(4)  In  Yiieh,  anyone  can  make  agricultural  implements, 
because  its  soil  needs  such  things  and  its  mines  supply  the 
materials.  In  Yen,  anyone  can  make  armors  of  defense, 
because  its  boundary  is  near  to  the  Huns.  In  Ch'in  (Shen- 
si),  anyone  can  make  handles  of  weapons,  because  its  woods 
are  fitted  to  this  occupation.  In  Hu  (where  the  Huns  live), 
anyone  can  make  the  bow  and  the  car,  because  it  is  a  no- 
madic country.  This  shows  the  different  workmanship  of 
different  nations.  Indeed,  the  skill  of  workmen  is  deter- 
mined by  the  natural  resources  and  the  natural  environment. 
Where  the  place  is  fitted  to  a  particular  industry,  the  people 
are  accustomed  to  it,  and  develop  a  special  skill.  Hence, 
any  industry  needs  the  skill  of  the  workman. 

All  these  four  things  are  important  for  any  mdustry.     If 


INDUSTRY 


405 


the  materials  are  good,  and  the  workmen  are  skilful,  but 
the  article  is  not  excellent,  it  may  be  because  the  article  is 
made  either  during  the  improper  season,  or  in  opposition 
to  the  climate.  These  four  things  are  the  grounds  upon 
which  any  industry  is  built.  Bur  the  skill  of  the  workman 
is  the  most  important  of  all,  because  it  can  modify  the  other 
three  elements. 

IV.   IMPORTANCE  OF  TOOLS 

In  the  "  Record  of  Industry,"  there  are  many  details 
about  the  methods  of  industry.  But  they  are  very  tech- 
nical, and  we  shall  not  enter  into  them.  Since  those  four 
elements  of  industry  mentioned  above  left  out  the  element 
of  tools,  which  might  be  included  in  the  element  of  skill,  we 
now  point  it  out  especially,  and  show  the  importance  of  the 
tools. 

The  Canon  of  History  quotes  these  words  from  Ch'ih  Jen, 
a  good  historian  of  the  ancients :  "  While  in  the  employment 
of  men  we  seek  the  old  friends,  in  the  employment  of  tools 
we  seek,  not  the  old  ones,  but  the  new."  '  Therefore  any 
industry  needs  new  tools.  Since  the  newer  tools  are  the 
better,  there  should  always  be  a  change  in  the  methods  of 
production.  This  principle  of  seeking  new  tools  is  a  dy- 
namic force  in  economic  life. 

The  importance  of  the  tools  is  indicated  by  Confucius 
himself.  He  says :  "  The  artisan  who  wishes  to  do  his  work 
well  must  first  sharpen  his  tools."  '  Therefore,  next  to  the 
artisan  himself,  tools  are  most  important.  This  is  why 
capital  is  as  important  as  labor  m  production.  .\nd  this  is 
why  tools  are  the  determining  forces  of  industry.  The  arti- 
san should  improve  his  tools  all  the  time,  if  he  wishes  to  do 
good  work. 

*  Classics.  \ol.  iii,  pt.  i,  pp.  229-230. 
'  Ibid.,  vol.  i,   p.  297. 


4o6        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 
V.    POSITION   OF  THE  ARTISANS 

For  the  position  of  the  artisans,  it  is  best  to  refer  to  the 
beginning  of  the  ''  Record  of  Industry.'      It  says: 

A  state  has  six  functions,  and  the  '*  hundred  artisans  "  take 
up  one  of  them.  Some  are  sitting  down  and  discussing  the 
principles.  Some  are  rising  and  executing  them.  Some  are 
judging  the  curve,  the  plane  and  all  the  conditions  of  the  ma- 
terials, for  the  utilization  of  the  five  elements  and  the  prepara- 
tion of  the  articles.  Some  are  transporting  the  valuable  and 
strange  goods  of  the  four  corners  and  storing  them  up.  Some 
are  using  tlieir  energy  for  the  increase  of  wealth  from  the  land. 
Some  are  making  the  silk  and  flax  ready  for  the  finishing  of 
clothes.  Those  who  are  sitting  down  and  discussing  the  prin- 
ciples are  called  emperor  and  princes.  Those  who  are  rising 
and  executing  them  are  called  students  and  great  officials. 
Those  who  are  judging  the  curve,  the  plane  and  all  the  condi- 
tions of  the  materials,  for  the  utilization  of  the  five  elements 
and  the  preparation  of  the  articles,  are  called  the  hundred 
artisans.  Those  who  are  transporting  the  valuable  and  strange 
goods  of  the  four  corners  and  storing  them  up  are  called  mer- 
chants. Those  who  are  using  their  energy  for  the  increase  of 
wealth  from  the  land  are  called  farmers.  Those  who  are  mak- 
ing the  silk  and  flax  ready  for  the  finishing  of  clothes  are  called 
working  women. ^ 

In  this  statement  we  find  four  important  points.  First, 
it  shows  industrial  democracy.  It  classifies  the  emperor, 
the  princes,  the  students  and  the  great  officials  along  with  the 
hundred  artisans,  the  merchants,  the  farmers  and  the  work- 
ing women.  All  of  them  are  in  the  laboring  class.  No  one 
is  personally  higher  than  any  other,  but  everyone  must  fulfil 
one  of  the  six  functions  of  the  state ;  hence  there  is  a  division 
into  six  groups.  Such  a  grouping  system  is  not  a  caste, 
but  a  division  of  labor.     Second,  it  attaches  the  chief  im- 

'  Official  System  of  Chou,  ch.  xxxix. 


INDUSTRY  407 

portance  to  industry.  In  the  beginning,  it  especially  gives 
emphasis  to  industry  by  saying  that  the  hundred  artisans 
take  up  one  of  the  six  functions.  This  shows  that  the  ar- 
tisans play  the  most  important  part  in  the  economic  func- 
tions of  a  state.  Therefore,  it  puts  the  artisans  in  the  third 
order,  preceding  the  merchants,  farmers,  ?nd  working 
women.  Third,  it  indicates  the  economic  position  of  woman. 
It  classifies  the  working  women  with  the  emperor  and  the 
princes,  etc.  This  shows  that  women  have  economic  inde- 
pendence, in  forming  a  separate  group  from  men,  and  that 
they  have  political  rights,  in  bearing  the  function  of  a  state, 
like  the  emperor  and  princes.  Cheng  Tlsiian  says:  "  Cloth 
is  the  task  of  the  female  officials."  As  women  can  be  offi- 
cials in  the  state,  the  political  rights  of  women  are  obvious. 
Fourth,  it  indicates  that  every  kind  of  labor  is  productive. 
The  emperor  and  the  princes,  who  are  sitting  down  and  dis- 
cussing the  principles,  and  the  students  and  great  officials, 
who  are  rising  and  executing  them,  are  just  as  productive  as 
the  other  four  groups.  Indeed,  no  one  should  be  unpro- 
ductive. These  are  the  four  significant  points.  And  the 
chief  point  to  which  we  want  to  call  attention  is  that  the  ar- 
tisans occupy  a  prominent  position  in  the  state. 

VI.    CONDITION  OF  THE  ARTISANS 

Since  we  have  described  the  position  of  artisans  in  the 
state  at  large,  we  now  come  to  consider  the  artisans  them- 
selves. Under  this  head,  we  may  note  six  points.  First, 
the  government  controls  all  the  industries.  In  ancient 
times,  the  government  was  not  only  a  political  organization, 
but  also  an  economic  one.  In  the  whole  society,  there 
is  no  greater  industrial  enterprise  than  that  of  govern- 
ment. It  receives  all  kinds  of  products  as  taxes,  so  it  has 
all  the  raw  materials  and  unfinished  goods.  Hence,  it  has 
the  means  of  production.     Since  the  government  contains  a 


408       THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

large  body  of  men,  and  is  the  richest  organization  of  the 
whole  society,  it  has  the  greatest  power  for  consumption. 
Therefore  the  government  factories  rise.  Every  important 
industry  has  a  factory,  and  all  the  factories  belong  to  the 
department  of  labor.  The  artisans  of  high  grade  are 
government  officers,  while  the  common  artisans  are  gov- 
ernment employees.  From  this  point  of  view,  we  may 
say  that  it  is  a  factory  system.  The  government  is  the  em- 
ployer, supplies  all  the  materials  and  tools,  takes  the  finished 
products,  and  pays  the  wages.  But  it  does  not  sell  the 
products  which  are  produced  in  the  factories,  but  consumes 
them  itself.  The  employees  are  simply  the  wage-earners, 
dependent  upon  the  government ;  but  they  may  get  good  pay, 
because  theirs  is  not  forced  labor,  and  the  government  does 
not  lay  the  burden  upon  any  particular  group  of  people,  as 
the  artisans.  Moreover,  their  work  may  be  very  regular, 
and  unemployment  is  unknown  to  them.  Therefore,  we 
may  venture  to  say  that  the  conditions  of  artisans  in  the 
government  factories  are  better  than  in  the  private  fac- 
tories. 

Second,  the  different  crafts  are  hereditary.  The  "  Record 
of  Industry  "  gives  a  definition  of  the  word  industry,  as 
follows :  "  After  the  sage  has  invented  a  thing,  the  expert 
transmits  it  and  holds  it  generation  after  generation — this 
is  called  an  industry."  Since  the  division  of  labor  is  not 
complete,  the  technical  training  is  complex,  and  the  secret 
of  the  industry  is  not  written  out,  the  artisans  usually  getting 
their  special  training  from  their  fathers.  Hence  the  craft 
becomes  hereditary.  This  is  not  a  caste  system;  but  it  nec- 
essarily comes  about  through  specialization  of  industry, 
family  education,  and  the  careful  transmission  of  secrets. 
Therefore,  although  the  artisans  have  freedom  of  occupa- 
tion, they  usually  take  up  the  work  of  cheir  fathers.  But  we 
must  understand  that  any  industry  does  not  exclude  the 


INDUSTRY 


409 


outsider  who  does  not  belong  to  the  same  family.  The 
fundamental  thing  is  this;  since  the  government  controls 
all  industries,  there  is  no  room  for  any  private  family  to 
monopolize  any  industry.  Because  the  crafts  are  mostly 
hereditary,  however,  the  artisans  sometimes  adopt  the  name 
of  their  industry  for  their  surname — Ch*iu  (furrier),  T'ao 
(potter),  etc. 

Third,  every  industry  has  a  master  to  preside  over  the 
whole  of  it.  He  is  an  officer  of  the  government.  Accord- 
ing to  the  "  Record  of  Industry,"  the  industry  of  carpentry 
has  a  master:  from  this  we  may  presume  that  there  is  a 
master  for  every  industry.  Mencius  speaks  of  the  master 
of  the  workmen.^  The  duties  of  the  master  are  to  choose 
and  to  inspect  the  materials,  to  oversee  the  work,  to  test 
the  finished  articles,  to  educate  the  workmen,  etc.  But 
teaching  may  be  the  chief  duty  of  a  master.  Mencius  says : 
"  A  master-workman,  in  teaching  others,  uses  the  compass 
and  square,  and  his  pupils  do  the  same."  ^  The  relation 
between  master  and  workmen  is  in  part  like  tliat  between 
teacher  and  pupils.  Such  technical  training  is  open  to  any- 
one who  wishes  to  specialize  in  the  particular  industry,  but 
we  do  not  know  the  length  of  the  term  of  apprenticeship. 

Fourth,  the  artisans  are  mostly  confined  to  a  single  indus- 
try for  a  lifetime.  According  to  the  "  Royal  Regulations," 
all  the  public  artisans,  who  serve  the  government  with  their 
particular  arts,  are  not  allowed  to  practise  any  other  thing, 
or  to  change  their  offices  outside  of  their  industry.'^  There 
are  two  reasons  for  this:  first,  it  makes  them  concentrate 
their  attention  on  their  own  specialization:  and  second,  they 
are  not  qualified  for  general  activities. 

Fifth,  the  artisans  live  together  in  a  special  district,  and 

•  Classics,  vol.  ii,  p.   167.  '  Ibid.,  p.  421. 

'  Li  Ki,  bk.  iii.  p.  235. 


41  o       THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

by  themselves.  Since  we  have  stated  above  the  theory  of 
Kuan  Tzu — that  the  four  groups  of  people  are  separated  ^ 
— we  need  not  enter  into  details  now.  On  the  one  hand, 
they  can  easily  learn  their  profession  within  their  group; 
and  on  the  other,  they  do  not  pay  any  attention  to  the  out- 
side.    This  is  a  scheme  for  specialization  of  arts. 

Sixth,  we  are  sure  that  the  group  of  artisans  is  in  the  true 
handicraft  stage.  All  those  five  characteristics  belong  to 
the  artisans  of  the  government  factories,  but  they  are  com- 
mon to  all  the  independent  artisans,  except  that  the  first  and 
the  fourth  characteristics  should  be  somewhat  modified. 
The  independent  artisans,  too,  are  controlled  by  the  gov- 
ernment; their  crafts  are  hereditary;  there  is  a  master  in 
every  industry ;  they  confine  themselves  to  a  single  industry 
for  life;  and  they  live  in  a  special  district.  But  they  have 
their  own  factory  or  workshop;  buy  their  own  materials 
and  tools;  sell  their  own  products;  and  are  both  em- 
ployers and  employees.  They  are  different  from  the  arti- 
sans of  the  government  factories.  The  latter  are  really 
in  a  factory  system,  and  they  are  simply  wage-eatners ; 
but  the  former  are  in  the  handicraft  system.  Tzu-hsia  says : 
''  The  artisans  have  their  shops  to  dwell  in,  in  order  to  ac- 
complish their  works."  ^  Such  shops  are  in  the  market 
place,  for  the  display  and  sale  of  goods.  In  so  far  as  the 
artisans  dwell  in  the  shops,  they  are  not  only  artisans,  but 
also  merchants.  This  is  a  very  important  characteristic  of 
the  independent  artisan. 

All  these  six  characteristics  mark  the  life  of  the  artisans 
of  ancient  China,  and  they  show  the  industrial  conditions  of 
the  time.  To-day,  China  is  coming  from  the  domestic  sys- 
tem to  the  modern  factory  system,  and  industrial  conditions 
are  quite  different  from  those  of  the  ancients. 

1  See  supra,  pp.  368-9.  ^  Classics,  vol.  i,  p.  341. 


CHAPTER  XXIII 

Commerce 

The  occupation  of  the  group  of  merchants  is  commerce. 
In  it  is  included  what  economists  call  *'  exchange;"  but  we 
shall  preserve  the  word  commerce,  because  it  is  the  usual 
designation  of  one  of  the  four  great  groups  of  people.  In 
the  Chinese  language,  the  group  of  merchants  is  divided  into 
two  classes.  The  one  is  called  traveling  merchant ;  he  de- 
liberates about  the  distance  to  be  covered,  makes  calculations 
in  regard  to  market  conditions,  and  transports  his  goods  to 
distant  places.  The  other  is  called  stationary  merchant:  he 
stores  up  goods,  and  waits  for  customers,  in  order  to  sell 
at  a  profit.  Such  a  distinction  might  have  been  very 
important  in  ancient  times,  but  it  does  not  help  us  any 
to-day;  hence,  we  shall  use  the  word  commerce  to  include 
these  two  classes  of  merchants,  and  make  no  distinction  be- 
tween them. 

I.  importance  of  commerce 

Since  the  Chinese  put  merchants  in  the  last  of  the  four 
groups  of  people,  a  misconception  has  arisen.  According  to 
the  common  view,  merchants  belong  to  the  worst  class  of 
people,  because  they  do  not  make  anything  themselves,  but 
simply  pick  up  profit  from  things  made  by  others.  More- 
over, they  invite  the  hatred  of  the  people  by  storing  up  com- 
modities in  order  to  raise  their  prices,  and  then  selling  them 
at  a  profit.  This  was  the  reason  why  Han  Kao  Ti  (350-357 
A.  K.  or  202-195  B.  C. )  forbade  the  merchants  wearing  silk 
and  riding  in  carriages,  and  put  a  burden  and  disgrace  upon 

411 


412        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

them  by  heavy  taxes.  It  was  the  first  law  appHed  to  the 
whole  empire  for  the  suppression  of  merchants.^  From  that 
time  on,  there  were  several  periods  in  Chinese  economic  his- 
tory in  which  merchants  suffered  a  great  deal.  But  such  a 
policy  is  not  according  to  the  principle  of  Confucius. 

As  we  have  seen,  in  Ku-liang's  Commentary,  merchants 
are  ranked  next  only  to  students,^  and  are  not  the  worst  class 
of  people  at  all.  The  reason  why  the  Chinese  usually  put 
the  merchants  in  the  last  of  the  four  groups  is  simply  this. 
Since  the  farmers  produce  the  raw  materials,  and  the  arti- 
sans the  manufactured  goods,  the  merchants  who  exchange 
the  raw  materials  and  the  manufactured  goods  should  not 
come  before  them.  It  is  the  order  of  the  processes  of  pro- 
duction, not  the  order  of  social  position,  nor  of  moral  dis- 
tinction. Therefore,  the  Chinese  call  agriculture  the  primary 
occupation,  industry  and  commerce  the  secondary  occupa- 
tions. It  is  the  natural  order  of  production,  but  there  is 
no  contempt  for  industry  and  commerce. 

Confucius  never  underestimates  the  merchants.  And 
before  the  Han  dynasty,  no  Confucian  ever  advocated  the 
policy  of  suppressing  the  merchants  for  the  encouraging  of 
farmers.  The  principle  that  the  four  groups  of  people  are 
equally  useful  to  society  is  pointed  out  by  Yeh  Shih  as  fol- 
lows :  ''  It  is  because  the  four  groups  of  people  all  together 
contribute  their  usefulness  to  society,  that  civilization  can 
be  advanced.  To  depress  the  secondary  occupations  and  to 
promote  the  primary  one,  is  not  a  correct  theory.^ 

The  relative   importance   of   agriculture   and   commerce 

^  Shang  Yang  was  the  first  one  who  established  the  policy  of  supress- 
ing  merchants  for  the  encouragement  of  farmers  (192-214  A.  K.  or 
360-338  B.  C).  See  Book  of  the  Lord  of  Shang,  bk.  ii ;  Historical 
Record,  ch.  Ixviii. 

2  See  supra,  p.  367. 

'  General  Research,  ch.  xx. 


COMMERCE 


413 


varies  with  the  times.  This  principle  is  stated  by  Ssu-ma 
Chien  as  follows : 

The  Canon  of  History  tells  of  the  interval  of  the  Tang  and  the 
Yii  dynasties,  and  the  Canon  of  Poetry  relates  the  ages  of  the 
Yin  and  the  Chou  dynasties :  In  time  of  calm  and  repose,  they 
honored  the  school  as  the  chief  social  institution ;  they  pre- 
ferred the  primary  occupation  at  first,  and  put  the  secondary 
ones  in  the  background  ;  they  used  the  rites  and  justice  to  con- 
trol personal  interest.  But  things  change,  and  in  the  com- 
plexity of  many  causes,  it  is  necessary  to  take  the  opposite  view. 
Therefore,  when  a  thing  is  at  its  apogee,  it  decays,  and  when 
a  time  comes  to  the  climax,  it  turns.  Sometimes  the  simple 
reality  predominates,  and  sometimes  the  complex  civilization; 
such  is  the  evolution  of  an  end  and  of  a  beginning.^ 

According  to  his  theory,  in  a  dynamic  state  and  a  complex 
civilization,  commerce  is  naturally  more  important  than 
agriculture.  Therefore,  even  though  the  moral  influence 
is  weakened  by  economic  interest,  and  capitalistic  production 
destroys  the  equality  of  distribution,  it  is  a  natural  result 
which  is  bound  to  come.  In  fact,  when  there  is  a  universal 
empire,  without  struggle  outside,  and  the  people  live  on  the 
social  income  by  themselves,  the  Chinese  attach  more  im- 
portance to  agriculture:  it  is  looked  at  from  the  standpoint 
of  distribution.  But,  when  there  is  a  national  struggle,  they 
attach  more  importance  to  industry  and  commerce;  it  is 
looked  at  from  the  standpoint  of  production. 

II.  COMMUNICATION  AND  TRANSPORTATION 

The  important  things  helping  the  growth  of  commerce 
are  communication  and  transportation.     These  two  things 

'  Historical  Record,  ch    xxx. 


414        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

usually  work  along  the  same  line.  Regarding  communi- 
cation, in  Confucius'  time  it  depended  on  the  strength  of 
horses  and  the  speed  and  endurance  of  man.  Therefore, 
Confucius  says :  ''  The  flowing  progress  of  virtue  is  more 
rapid  than  the  transmission  of  royal  orders  by  stages  and 
couriers."  ^  Along  the  roads,  there  were  stations  at  fixed 
distances.  As  the  government  dispatch  reached  any  station, 
the  station  employed  its  own  stage  or  courier  to  transmit  it 
to  the  next  station,  and  the  next  station  did  the  same.  In 
this  way,  the  dispatch  was  rapidly  sent  forward. 

According  to  the  Law  Code  of  the  Ts'ing  Dynasty,^ 
every  fifteen  miles  a  post  station  is  established;  and  at 
every  station,  there  are  one  postmaster  and  four  postmen. 
Within  twenty-four  hours,  the  dispatch  must  pass  over  three 
hundred  miles.  The  postman  must  not  delay  midway. 
When  any  dispatch  comes  in,  no  matter  how  many  or  how 
few,  the  postmaster  must  give  it  immediately  to  the  postman 
without  waiting  for  the  coming  dispatch.  Such  a  system  is 
the  survival  of  an  old  fashion,  but  it  is  gradually  being 
abolished. 

Formerly,  private  letters  were  delivered  by  a  private  post- 
ofiice.  NoWj  communication  is  usually  through  the  new 
postal,  telegraph  and  telephone  system.  These  three  things 
belong  to  the  Department  of  Communication  and  Trans- 
portation which  controls  also  steamships  and  railroads  (es- 
tablished in  2457  A.  K.  or  1906  A.  D.). 

Since  transportation  is  even  more  important  than  commu- 
nication, we  shall  discuss  it  at  greater  length.  Since  trans- 
portation by  land  was  naturally  easier  than  transportation 
by  water,  it  shall  receive  first  atiention.     According  to  his- 

^  Classics,  vol.  ii,  p.  184. 
'  Ch.  xxii. 


COMMERCE  413 

tory/  Huang  Ti  was  the  inventor  of  the  carriage;  Shao 
Hao  was  the  first  one  who  used  the  ox  to  draw  it;  and  Yao 
was  the  first  one  who  used  the  horse.  In  ancient  times,  the 
use  of  oxen  or  cows  for  the  drawing  of  c^rts  was  more  com- 
mon than  that  of  horses.^ 

The  "  pointing-south  car  "  was  invented  by  Huang  Ti. 
When  he  fought  with  Ch'ih  Yu,  the  latter  created  a  fog 
by  magic  power,  and  his  soldiers  missed  their  way.  Huang 
Ti  therefore  invented  the  ''  pointing-south  car "  for  the 
showing  of  direction.  After  the  victory  was  won,  this  car 
was  often  used.  During  the  Chou  dynasty,  when  the  envoy 
of  Annam  who  came  to  pay  the  tribute  to  the  court  missed 
his  way  going  home,  the  Duke  of  Chou  made  this  car  for 
him,  and  he  arrived  home  in  the  length  of  one  year.  There- 
fore, this  car  always  led  the  procession  when  the  emperor 
went  out,  in  order  to  impress  the  people.  During  the  Latter 
Han  dynasty,  Chang  Hcng  (629-690,  or  78-139  A.  D.) 
began  to  make  this  car  again.  But  the  invention  was  lost 
during  the  revolutionary  war  of  that  dynasty.  Under  the 
reig^i  of  Wei  Ming  Ti  (about  784-787,  or  233-236  A.  D.), 
Professor  Ma  Chiin-shao  was  ordered  to  make  it.  On  the 
top  of  the  car,  there  was  a  wooden  figure  with  hand  raised, 
and  always  pointing  south.  But  it  was  lost  again  during  the 
revolution  of  the  Tsin  dynasty.  In  968  (417  A.  D.),  this 
car  was  discovered,  but  its  mechanism  was  not  perfect. 
During  the  reign  of  Sung  Shun  Ti  (1028-1029,  or  477-478 
A.  D.),  Tsu  Chung-chih  renewed  and  perfected  it.  In  later 
times,  there  were  many  styles,  but  the  essential,  that  is, 
pointing  south,  was  always  the  same.  The  "  pointing-south 
car  "  was  of  great  importance  to  the  development  of  trans- 
portation, because  it  was  the  origin  of  the  compass. 

*  General  Research,  ch.  cxvi. 

*  Classics,  vol.  iii,  pt.  ii,  p.  404;  vol.  iv.  pt.  ii,  pp.  356.  413. 


41 6        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

According  to  the  imperial  procession,  next  to  the  "  point- 
ing-south car "  was  the  "  recording-miles-drum  car." 
Within  the  car,  there  was  a  wooden  person  holding  a  ham- 
mer toward  a  drum,  and  striking  the  drum  once  when  it 
passed  each  mile.  It  was  discovered  in  968,  but  the  in- 
ventor is  unknown.  In  later  times,  it  had  many  modifi- 
cations.^ This  original  form  of  speedometer  was  also  im- 
portant to  the  development  of  transportation. 

One  of  the  most  wonderful  inventions  along  the  line  of 
transportation  was  the  invention  of  ''  wooden  oxen  and 
flowing  horses."  In  782  (231  A.  D.),  Chu-ko  Liang,  the 
greatest  statesman  of  the  Three  Kingdoms,  invented  the 
wooden  oxen  and  the  flowing  horses  for  the  transportation 
of  food  to  his  army.^  They  were  labor-saving  machines, 
and  their  operation  was  very  successful.  Unfortunately, 
after  his  death  (785),  no  one  was  able  to  make  use  of  his  in- 
vention, although  a  description  of  it  is  still  preserved. 

Uniformity,  which  is  a  very  important  principle  of  Con- 
fucius, is  especially  applicable  to  the  system  of  transporta- 
tion. The  "  Doctrine  of  the  Mean  "  says  that  all  over  the 
world  carriages  have  wheels  of  the  same  size.^  This  is 
the  theoretical  view  of  the  Confucians ;  it  requires  the  roads 
of  the  whole  world  to  be  uniform.  Such  a  theory  will  be 
easily  realized  when  the  railway  system  is  perfected. 

According  to  the  "  Royal  Regulations,"  one  road  is  di- 
vided up  into  three  parts.  Men  take  the  right  vv^ay;  women 
take  the  left  way ;  and  carriages  keep  in  the  middle.*  There- 
fore, the  road  is  very  broad ;  the  two  sexes  are  kept  apart ; 
and  the  carriages  never  can  hurt  the  people.  This  is  the 
general  system  of  roads. 

^  General  Research,  ch.  cxvii. 

2  History  of  the  Three  Kingdoms,  ch.  xxxv. 

'  Classics,  vol.  i,  p.  424. 

*  Li  Ki,  bk.  iii,  p.  244. 


COMMERCE 


417 


According  to  the  Official  System  of  Chou,  the  system  of 
roads  is  very  complete.  There  is  the  surveyor  {Hang  jen)^ 
to  fix  the  different  standards  of  different  roads,  which  vary 
in  width  from  eight  feet  to  seventy-two  feet.  There  is  the 
superintendent  of  strategical  positions  (ssii  hsieny  to  con- 
nect the  roads  through  the  mountains  and  rivers,  and  to 
plant  trees  along  the  roads.  There  is  the  inspector  of  hotels 
(yeh  In  shihy  to  look  after  the  roads  of  the  whole  imperial 
state,  and  the  stations,  hotels,  wells  and  trees  along  the 
roads.  There  is  a  general  rule.  ^  Every  ten  miles,  there  is  a 
station  along  the  road,  and  food  and  drink  are  served  there. 
Every  thirty  miles,  there  is  a  lodging  place,  where  the 
hotel  stands;  and  within  the  hotel,  a  small  store  of  grain  is 
kept.  Every  fifty  miles,  there  is  a  market  place,  where  a 
tower  is  built;  and  within  the  tower,  a  large  store  is  kept. 
All  these  public  buildings  are  for  the  convenience  of  travel- 
ers. There  is  the  chief  of  guards  {hou  jen)  *  who  sends  the 
guards  carrying  lances  and  halberds  on  the  roads,  for  the 
safety  of  travelers.  Finally  and  most  important  for  the 
economic  life,  there  is  the  officer  called  the  combiner  of  all 
directions  {ho  fang  skill). ^  His  function  is  to  control  all 
the  roads  of  the  empire,  for  the  exchange  of  wealth. 
Through  these  regulations  prescribing  the  duties  of  different 
officers,  the  operation  of  an  efficient  system  of  roads  is  as- 
sured. 

For  transportation  by  water,  we  must  go  back  to  the 
"  Tribute  of  Vii."  This  book  is  a  description  of  the  differ- 
ent water-ways  by  which  the  tribute  of  the  nine  provinces 
was  presented  to  the  capital  city.  The  capital  city  was  in 
Ki  Chow,  the  present  provinces  of  Chihli  and  Shansi.   Along 

'  Ch.  XXX.  '  Ch.  xxxvi. 

»  Ch.  xiii.  *  Ch.   xxx. 

*  Ch.  xxxiii.  ' 


4i8       THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

the  three  directions  of  Ki  Chow,  west,  south  and  east,  there 
is  the  Ho^  the  Yellow  River.  I'he  reason  why  the  capital 
was  there  was  for  the  convenience  of  transportation.  Ac- 
cording to  the  theory  of  Confucius,  a  capital  must  be  in  a 
place  where  the  water-way  is  good,  in  order  to  facili- 
tate the  paying  of  visits  and  tribute  by  the  princes,  and  the 
exchanges  of  the  merchants.  Therefore,  the  "  Tribute  of 
Yii,"  after  telling  about  the  taxation  and  the  tribute  of  dif- 
ferent provinces,  describes  the  water-ways  connected  with 
the  capital.  The  fundamental  point  was  the  Ho,  because, 
when  anything  came  to  the  Ho,  it  was  easily  conveyed  to 
the  capital.  The  routes  to  be  taken  by  boats  from  the  dif~ 
ferent  provinces  are  described  in  detail.  This  is  the  oldest 
system  of  water  transportation  in  the  history  of  the  empire.' 
Transportation  by  sea  can  be  traced  back  to  the 
"Tribute  of  Yii."  When  Yang  Chow  (Kiangsu,  An- 
hui,  Kiangsi,  Chekiang,  Fukien)  sent  its  tribute,  they  fol- 
lowed the  course  of  the  Kiang  (the  Yangtze  River)  and 
the  sea,  and  so  reached  the  Hwai  and  the  Sze;  then  they 
came  to  the  Ho.  From  the  mouth  of  the  Kiang  to  the 
mouth  of  the  Hwai,  however,  are  only  six  or  seven  hundred 
miles.  The  long  way  of  transportation  by  sea  conducted  by 
the  government  really  began  under  the  Tang  dynasty.  In 
1290  (739  A.  D.),  the  governor  of  Yu  Chow  (Chihli  pro- 
vince) was  appointed  as  a  commissioner  of  sea  transporta- 
tion. At  that  time,  the  rice  of  Kiangsu  was  transported  by 
sea  to  Chihli  for  the  support  of  the  soldiers.  During  the 
Yuan  dynasty,  sea  transportation  became  very  important. 
It  began  in  1833  (1282  A.  D.),  and  ended  in  1914,  about 
the  end  of  that  dynasty  (1918).  It  transported  rice  from 
Kiangsu  and  Chekiang  to  Peking  twice  a  year,  and  the  an- 
nual amou:|t  of  rice  at  the  highest  point  was  more  than  three 

^  Classics,  vol.  iii.  pt.  i,  pp.  92-127. 


COMMERCE 


419 


million  bushels.     All  the  officials  and  the  people  were  de- 
pendent upon  this  transportation.^ 

The  "  Tribute  of  Yii  "  describes  the  natural  water- 
ways ;  we  come  next  to  the  system  of  canals.  In  an- 
cient times,  there  was  no  canal  for  the  purpose  of  trans- 
portation, because  there  was  no  need  of  it.  In  66  A.  K. 
(486  B.  C),  the  first  canal,  which  was  called  the  Han  Canal, 
was  built,  and  it  was  the  most  important  one.  Tso's  Com- 
jiicntary  says :  ''  This  autumn,  Wu  walled  Han,  and  thence 
formed  by  a  canal  a  communication  between  the  Kiang  and 
the  Hwai."  ^  Before  that  time,  these  two  large  rivers  had 
never  been  connected.  It  was  only  when  the  king  of  \Vu 
wished  to  get  the  supremacy  over  the  northern  states,  that 
he  first  opened  this  canal  for  the  transportation  of  food  to 
his  army.  It  was  to  lead  the  water  of  the  Kiang  to  that  of 
the  Hwai,  and  it  was  the  basis  of  the  Imperial  Canal.  In 
1 138  (587  A.  D.),  Sui  Wen  Ti  opened  a  new  canal  on  the 
west  of  the  Han  Canal.  This  was  the  first  tune  that  the 
water  of  the  Hwai  was  led  to  the  Kiang,  but  it  was  not 
large  enough  for  the  navigation  of  battle  ships.  In  11 56 
(605  A.  D.),  Sui  Yang  Ti  employed  more  than  one  hundred 
thousand  laborers  for  the  enlarging  of  the  new  canal.  Its 
length  was  more  than  three  hundred  miles,  and  its  width 
was  forty  paces.  The  "  dragon  boats  "  could  be  navigated. 
Along  the  two  sides  of  the  canal,  the  imperial  roads  were 
built,  and  willow  trees  were  planted  on  the  roads.  In  the 
same  year,  more  than  one  million  laborers,  including  men 
and  women,  were  employed  f«^r  the  opening  of  the  Tung-chi 
Canal,  in  order  to  connect  the  Loh  with  the  Ho  and  the  Ho 
with  the  Hwai.  In  1 159,  a  similar  number  of  laborers  were 
employed   for  the  opening  of  the  Yung-chi   Canal,  which 

'  Continuation  of  the  General  Research,  ch.  xxxi. 

-  Classics,  vol.  v,  pt.  ii.  p.  819.     Han  is  the  present  Yangchow. 


420 


THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 


led  the  Ts'in  southward  connecting  with  the  Ho,  and  north- 
ward reaching  Peking.  Inii6i  (610A.  D.),  the  South- 
ern Canal  was  opened  from  Chenkiang  to  Hangchow.  Its 
length  was  more  than  eight  hundred  miles,  and  its  width 
more  than  one  hundred  feet.  Thus  the  Imperial  Canal  was 
completed.  Since  the  large  rivers  of  China  run  mostly 
from  the  west  to  the  east,  there  is  only  the  Imperial  Canal 
running  from  the  north  to  the  south  for  a  great  distance. 
In  fact,  it  connected  the  north  and  the  south,  and  had  a 
great  influence  upon  every  aspect  of  Chinese  life.  Before 
the  modern  railway  system  began,  there  was  no  means  of 
communication  comparable  with  the  Imperial  Canal. 

For  transportation  by  water,  the  best  invention  was 
the  '^  thousand-miles  ship  ".  It  was  the  invention  of  Tsu 
Chung-chih,  and  was  made  between  1034  and  105 1  (483- 
500  A.  D.).  It  was  moved  by  machine  power.  When  it 
was  tested,  it  sailed  more  than  one  hundred  miles  in  one 
day.^  It  was  like  the  modem  steamship,  but  it  produced 
no  practical  effect. 

III.    WEIGHTS   AND    MEASURES 

Among  the  instruments  of  com.merce,  the  different  kinds 
of  measures  are  very  important.  In  ancient  China,  all  the 
measures  were  based  upon  the  standard  tubes.  The  twelve 
tubes  were  originally  made  by  Huang  Ti  of  bamboo,  then 
of  jade,  and  in  the  Han  dynasty  of  brass  or  copper.  They 
were  a  little  more  than  three-tenths  of  an  inch  in  diameter, 
and  the  circumference  of  the  bore  was  exactly  nine-tenths. 
The  longest,  called  the  "  yellow  cup,"  was  9  inches  long, 
and  the  shortest,  the  "  responsive  cup,"  only  4.66  inches. 
Six  tubes  of  them  gave  the  sharped  notes  in  music,  and  the 
other  six  gave  the  flat  notes;  the  twelve  together  formed  a 

^  History  of  Southern  Ch'i,  ch.  Hi. 


COMMERCE  421 

chromatic  scale.  Besides  their  application  to  music,  ( i )  the 
yellow  cup  was  the  standard  measure  of  length.  Since  the 
breadth  of  a  grain  of  millet  made  i  fen,  90  grains  deter- 
mined the  length  of  the  yellow  cup;  10  fen  were  i  inch;  10 
inches  were  i  foot;  10  feet  were  i  cJiang:  and  10  chang 
were  i  yin.  (2)  The  yellow  cup  was  also  the  standard  for 
measures  of  capacity.  13I/3  millet  grains  filled  i  fhi  of  it, 
and  1200  grains  filled  the  whole;  so  much  made  i  yo;  2  yo 
made  i  ko ;  10  ko,  i  sh-eng  or  pint;  10  sheng,  i  ton  or 
peck;  10  ton,  1  Jiu  or  bushel.  (3)  This  tube,  again,  sup- 
plied the  standard  for  weights,  roo  grains  of  millet  weighed 
I  chu;  24  chu,  i  Hang  or  tael ;  16  taels,  i  chin  or  catty;  30 
catties,  i  chiin;  and  4  chiin,  i  shih  or  stone.  Therefore,  it 
was  said  that  the  yellow  cup  was  the  basis  of  all  human  af- 
fairs.^ 

The  comparison  between  the  ancient  measuies  and  the 
modern  measures  we  may  state  as  simply  as  possible."  First, 
regarding  the  measure  of  length,  the  ancient  foot  was  only 
7.4  inches  of  the  modern  foot  (the  foot  of  the  Department 
of  Labor)  ;  and  the  modern  foot  is  i  foot  3.5  inches  of  the 
ancient  foot.  If  we  take  this  standard  to  measure  the  land, 
the  ancient  pace  was  6  feet,  and  the  modern  pace  is  5  feet ; 
hence,  the  ancient  pace  was  only  4  feet  4.4  inches  of  the 
modern  pace,  and  the  modern  pace  is  \  pace  7.5  inches  of 
the  ancient  pace.  In  ancient  times,  3CX)  paces  made  i  mile; 
and  in  modern  times.  360  paces  make  i  nnle.  Therefore. 
100  miles  of  the  ancient  were  litile  more  than  55  miles  and 
22  paces  of  the  modern.  In  ancient  times.  100  paces  made 
I  acre;  and  in  modern  times,  (from  the  Han  dynasty  to  the 
present).  240  paces  make  i  acre.  According  to  the  differ- 
ence of  measures,  the  240  paces  cf  the  modern  acre  are  little 

*  History  of  Han,  ch.  xxi. 

'  .Ml  the  mea.sures  mentioned  in  this  treatise  refer  to  this  paragraph. 


422        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

more  than  364  paces  of  the  ancient.  Therefore,  100  acres 
of  the  ancient  were  little  more  than  2y  acres  of  the  modern. 
Second,  regarding  the  measures  of  capacity,  the  propor- 
tion is  10  to  2.  For  example,  10  pints  of  the  ancient  equaled 
only  2  pints  of  the  modern/  Third,  regarding  weights, 
the  proportion  is  3  to  i.  For  example,  the  ancient  weight 
of  3  catties  equaled  only  i  catty  of  the  modern  weight  (since 
the  Sui  dynasty).^  It  thus  appears  that  all  the  measures  and 
weights  of  the  modern  are  much  greater  than  those  of  the 
ancient.^ 

Since  the  different  measures  are  very  important  for 
human  affairs,  and  especially  for  commerce,  the  government 
should  pay  much  attention  to  them.  According  to  the 
Canon  of  History,  the  Emperor  Shun  made  a  tour  of  in- 
spection every  five  years;  and  during  that  time  he  made 
uniform  the  standard  tubes,  the  measures  of  length,  of 
capacity  and  of  weight  throughout  the  whole  empire.*  Ac- 
cording to  the  Record  of  Rites,  at  the  equinox  of  the  sec- 
ond month,  the  government  makes  uniform  the  measures 
of  length  and  capacity;  the  weight  of  30  catties,  the  steel- 
yard, and  the  weight  of  120  catties.  L  corrects  the  peck 
and  bushel,  the  steelyard  weights  and  the  bushel-scraper. 

^  Canonical  Interpretation  of  the  Present  Dynasty,  vol.  xxxix,  ch.  ii. 

*  General  Research  of  the  Present  Dynasty,  ch.  ii. 

^  A  comparison  of  modern  Chinese  measures  and  weights  with  Eng- 
Ush,  results  as  follows:  (i)  The  Chinese  foot  (chih)  is  fixed  by  treaty 
at  14.1  inches  English,  or  0.3581  meters.  The  Chinese  acre  (mou)  is 
fixed  by  treaty  at  733y2  square  yards,  or  6.6  Chinese  acres  equal  i 
English  acre.  A  Chinese  mile  (Ii)  is  360  paces  or  1800  feet,  and  it 
equals  1894.12  English  feet.  (2)  A  Chinese  pint  (sheng)  is  about  one- 
fourth  less  than  an  English  pint.  (3)  The  Chinese  catty  (chin)  is 
equal  by  treaty  to  1^/3  lbs.  avoirdupois,  or  604.53  grams.  Except  that 
the  measurement  of  the  pint  is  quoted  from  a  note  of  Legge  (Chinese 
Classics,  vol.  i,  p.  185),  all  these  statements  are  quoted  from  the 
Chinese-English  Dictionary  of  H.  A.  Giles. 

*  Classics,  vol.  iii,  pt.  i,  p.  36 


COMMERCE 


423 


x\nd,  at  the  equinox  of  the  eighth  month,  it  does  the  same.' 
Thus  the  government  regulated  the  different  measures  twice 
a  year.  From  these  statements,  it  appears  that  in  ancient 
China,  the  government  gave  much  attention  to  the  different 
measures  in  order  to  prevent  fraud  in  commercial  life. 

During  Confucius'  time,  the  government  did  not  pay  at- 
tention to  the  measures,  and  there  either  we^'e  no  special 
officers  in  charge  of  them,  or  the  officers  did  not  do  their 
duty.  Therefore,  Confucius  sets  forth  the  rules  of  a  gov- 
ernment as  follov^s :  '*  Carefully  attending  to  the  weights 
and  the  measures  of  capacity;  examining  the  standard  tubes 
and  the  measures  of  length ;  and  restoring  the  discarded  offi- 
cers who  take  charge  of  them — the  good  government  will 
be  prevailing  over  the  four  corners."  ■"  According  to  the 
principle  of  Confucius,  the  weights  and  measures  are  the 
most  important  instruments  of  commerce,  and  they  must 
be  regulated  carefully  and  uniformly  by  the  government. 
If  they  are  correct,  it  is  good  not  only  for  commerce,  but 
also  for  political  affairs  as  a  whole. 

IV.  VALUE  AND  PRICE 

The  value  of  a  thing  is  dependent  not  only  upon  its  utility, 
but  also  upon  its  scarcity.  Such  a  principle  is  given  by 
Mencius.     He  says : 

The  i)cople  cannot  live  without  water  and  fire,  yet  if  you  knock 
at  a  man's  door  in  the  dusk  of  the  evening,  and  ?i^V  for  water 
and  fire,  there  is  no  man  who  will  not  give  them,  such  is  the 
abundance  of  these  things.  A  sage  governs  the  world  so  as 
to  cause  pulse  and  grain  to  be  as  abundant  as  water  and  fire."* 

According  to  this  statement,  water  and  fire  have  utility, 

•  Li  Ki,  bk.  iv.  pp.  260.  289. 

•  Cf.  Classics,  vol.  i,  p.  351. 

•  Classics,  vol.  ii.  pp.  462-3. 


424        T^^  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

because  the  people  cannot  live  without  them.  But  they 
have  no  value  when  they  are  abundant  and  can  be  ob- 
tained easily.  On  the  other  hand,  pulse  and  grain 
have  both  utility  and  value,  because  they  are  limited  in 
supply.  Therefore,  the  sage  wants  to  make  them  as  abun- 
dant as  water  and  tire.  In  other  words,  the  sage  wants 
to  make  economic  goods  as  abundant  as  free  goods.  The 
multiplication  of  their  quantity  in  supply  is  the  funda- 
mental cause  of  lowering  their  value,  provided  that  there  is 
a  constant  demand  for  them.  If  all  the  economic  goods 
were  converted  into  free  goods,  they  would  have  no  value, 
but  utility,  and  the  people  would  obtain  them  without  pay- 
ment; hence,  the  people  would  all  be  virtuous.  This  is  the 
object  of  the  sage  who  wants  to  solve  the  ethical  problem 
by  the  solution  of  the  economic  problem;  and  this  is  also 
the  principle  of  value. 

The  difference  between  economic  goods  and  free  goods 
is  pointed  out  very  clearly  by  Su  Shih,  a  great  writer  of  the 
Sung  dynasty  (i  587-1652,  or  1036-1101  A.  D.).  In  one 
of  his  famous  essays,  he  says : 

Generally^  in  the  world,  everything  has  its  owner.  If  it  does 
not  belong  to  us,  we  ought  not  to  take  even  a  little  bit.  But 
the  gentle  wind  above  the  river  which  is  obtained  by  the  ear 
as  a  sound,  and  the  radiant  moonlight  in  the  mountain  which  is 
met  by  the  eye  as  a  beauty,  are  to  be  taken  without  prohibition, 
and  to  be  consumed  without  exhaustion.  They  are  supplied 
by  the  unexhausted  treasury  of  nature. 

His  essay  is  not  a  treatise  on  economic  subjects  at  all,  but 
this  statement  is  a  good  principle  of  economics.  According 
to  it,  economic  goods  are  limited  in  supply,  and  belong 
to  their  owners ;  but  free  goods  are  not  limited  in  supply, 
and  belong  to  nature  only.  Hence,  the  former  have  value, 
and  the  latter  have  not.     Therefore,  economic  goods  differ 


COMMERCE 


425 


from  free  goods  as  regards  their  suppl}- ;  while  as  regards 
demand  there  is  no  difference  between  them. 

Confucius  very  seldom  speaks  of  price.  But  there  is  one 
statement  in  reference  to  price,  and  it  is  in  harmony  with  eco- 
nomic principles.  Tzu-kung  asks  Confucius :  '*  There  is  a 
beautiful  jade  here.  Should  1  lay  it  up  in  a  case  and  keep  it? 
or  should  I  seek  for  a  good  price  and  sell  it?"  Confucius 
says :  "  Sell  it !  Sell  it !  But  I  would  wait  for  some  one  to 
offer  the  price."  ^  This  conversation  is  not  about  an  eco- 
nomic problem  at  all,  but  is  allegorical.  Tzu-kung  takes  the 
jade  as  the  representative  of  Confucius,  and  then  asks  him 
why  he  should  not  offer  himself  for  official  employment. 
The  answer  of  Confucius  is  that  self-respect  is  more  im- 
portant and  more  proper  than  office-seeking.  Therefore,  he 
does  not  bend  himself  for  the  seeking  of  office.  This  is  the 
whole  meaning  of  this  conversation.  According  to  their 
words,  however,  it  is  a  princii)le  of  price.  Since  price  is 
determined  by  demand  and  supply,  if  the  seller  offers  his 
commodity  for  sale  before  there  is  any  demand  for  it.  its 
price  must  be  low ;  but,  if  he  keeps  it  on  his  own  hands  and 
waits  until  the  rise  of  demand,  its  price  must  be  high.  This 
is  really  a  true  principle  of  price,  althoucfh  it  is  stated  in  an 
illusive  way. 

Although  Confucius  very  seldom  spoke  about  price,  he 
(lid  influence  the  market  price  by  his  administration.  Ac- 
cording to  Hsun  Tzu,  when  he  was  about  to  become  the 
minister  of  justice,  the  sellers  of  cows  and  horses  in  the 
state  of  Lu  did  not  have  frauflulent  prices."  though  fraud- 
ulent prices  were  common  in  ancient  times.  The  sellers 
made  devices  to  deceive  the  buyers  for  the  purpose  of  rais- 
ing prices,  especially  the  sellers  of  animals.     But.  when  Con- 

•  Classics,  vol.  i.  p.  221. 
»  Bk.  viii 


426       THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

fucius  was  about  to  take  that  office,  his  moral  influence  pre- 
vailed even  over  the  market  place.  Therefore,  the  whole 
market  was  free  from  fraudulent  prices. 

Mencius  gave  a  very  good  principle  about  price,  in  his 
reply  to  Chen  Hsiang,  the  follower  of  Hsii  Hsing.  After 
Chen  Hsiang  had  been  defeated  by  Mencius,^  he  advanced 
the  following  argument: 

If  the  doctrines  of  Hsii  Tzii  were  followed,  then  there  would 
not  be  two  prices  in  the  market,  nor  any  deceit  in  the  state.  If 
a  boy  of  five  cubits  were  sent  to  the  market,  no  one  would 
impose  on  him.  Linen  and  silk  of  the  sam.e  length  would  be  of 
the  same  price.  So  it  would  be  with  bundles  of  hemp  and 
silk,  being  of  the  same  weight;  with  the  different  kinds  of 
grain,  being  the  same  in  quantity;  and  with  shoes  which  were 
of  the  same  size. 

Mencius  replied: 

It  is  the  nature  of  things  to  be  of  unequal  quality.  Some  are 
worth  twice,  some  five  times,  some  ten  times,  some  a  hundred 
times,  some  a  thousand  times,  some  ten  thousand  times  as  much 
as  others.  If  you  reduce  them  all  to  the  same  standard,  that 
must  throw  the  world  into  confusion.  If  coarse  ^hoes  and  fine 
shoes  were  of  the  same  price,  who  would  make  the  latter? 
For  people  to  follow  the  doctrines  of  Hsii  Tzu,  would  be  for 
them  to  lead  one  another  on  to  practise  deceit.  How  can  such 
doctrines  avail  for  the  government  of  a  state?  ^ 

According  to  these  arguments,  Hsii's  doctrine  is  that  the 
price  should  be  made  uniform  on  the  basis  of  the  quantity 
of  things;  but  Mencius'  principle  is  that  price  should  vary 
according  to  the  quality  of  things.  We  cannot  make  a  com- 
parison between  these  two  arguments,  because  the  former 

1  See  supra,  p.  385,  and  infra,  pp.  485-6. 
'  Classics,  vol.  ii,  p.  256. 


COMMERCE 


427 


is  obviously  wrong,  and  the  latter  is  obviously  correct.  We 
now  simply  explain  the  principle  of  Mencius.  According  to 
him,  the  value  of  a  thing  is  determined  by  its  quality,  not 
by  its  length,  nor  by  its  weight,  nor  by  its  quantity,  nor  by 
its  size.  Now,  we  may  ask  what  is  the  determining  factor 
of  the  quality  of  a  thing?  In  fact,  the  quality  of  a  thing 
depends  on  the  cost  of  making  it.  Therefore,  if  coarse 
shoes  and  fine  shoes  were  of  the  same  price,  no  one  will 
make  the  fine  ones.  If  we  put  it  into  modern  terms,  price 
is  determined  by  the  cost  of  production.  When  the  cost  of 
a  thing  is  twice,  or  five  times,  or  ten  times,  or  a  hundred 
times,  or  a  thousand  times,  or  ten  thousand  times  as  much 
as  that  of  others,  its  price  will  be  in  the  same  proportion. 
This  is  true  in  regard  to  manufactured  goods,  and  even 
in  regard  to  natural  goods,  such  as  pearl  and  jade, 
they  cannot  get  away  from  the  cost  element,  because  they 
are  difficult  to  obtain.  This  theory  is  from  the  standpoint 
of  the  producer,  but  the  producer  really  has  a  greater 
power  in  the  making  of  price  than  the  consumer.  There- 
fore, the  cost  of  production  is  a  great  element  in  determin- 
ing price.  Moreover,  if  we  return  to  the  beginning  of  the 
argument  of  Mencius,  we  must  say  that  the  price  of  all 
things  is  determined  by  the  nature  of  them.  By  the  phrase 
"  nature  of  things,"  on  the  one  hand,  he  means  the  utility 
which  can  be  derived  from  them,  and  it  is  looked  at  from 
the  point  of  view  of  the  consumer;  on  the  other  hand,  he 
means  the  cost  which  has  been  put  into  them,  and  it  is 
looked  at  from  the  point  of  view  of  the  producer.  There- 
fore, Mencius'  statement  that  price  is  determined  by  the 
nature  of  things  is  quite  correct  and  conclusive,  because  it 
combines  the  utility  element  and  the  cost  element. 

There  is  a  very  close  relation  between  consumers'  wants 
and  prices,  and  it  is  shown  by  the  '*  Royal  Regulations." 
It  says:  **  [When  the  emperor  makes  r.  tour  of  inspection 


428       THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

throughout  the  empire],  he  orders  the  superintendents  of 
markets  to  present  hsts  of  prices,  that  he  may  see  what  the 
people  want.  If  their  mind  were  luxurious,  they  would 
want  the  extraordinary  things."^  Cheng  Hsiian  explains: 
"  If  their  wants  are  simple,  the  price  of  necessaries  will 
be  high;  and  if  they  are  luxurious,  that  of  luxuries  will 
he  high."  Therefore,  prices  are  the  index  of  consumers* 
wants.  If  we  do  not  know  what  is  the  characteristic  of 
their  wants,  we  may  judge  them  by  the  lists  of  prices.  In 
fact,  the  wants  of  consumers  are  usually  the  causes,  and 
prices  are  their  effects,  although  the  latter  may  sometimes 
affect  the  former. 

V.    MONEY  AND  BANKING 

I.  History  of  Money  and  Banking 
The  history  of  Chinese  money  begins  in  the  remotest 
time.  It  is  said  that  money  had  been  used  since  the  reign 
of  Pao  Hsi  (2402-2288  B.  K.  or  2953-2839  B.  C).  Dur- 
ing the  dynasties  of  Yii  and  Hsia,  three  metals  were  used 
for  money.  Gold  occupied  first  place  as  a  standard,  silver 
the  next,  and  copper  the  lowest  in  the  class  of  money.^  Ac- 
cording to  the  "  Tribute  of  Yu,"  the  provinces  of  Yang 
and  King  both  sent  these  three  kinds  of  metal  to  the  imperial 
government  as  tribute.^  We  may  say  that  the  Chinese  give 
us  our  oldest  example  of  the  gold  standard. 

During  the  beginning  of  the  Chou  dynasty,  T'ai  Kung 
established  the  nine  treasuries  to  have  charge  of  the  money 
system.  The  gold  money  was  an  inch  square,  and  its  weight 
was  one  catty.  The  shape  of  copper  money  was  round,  and 
there  was  a  square  hole  in  its  middle;  its  weight  was  counted 

*  Li  Ki,  bk.  iii,  p.  216. 

*  Historical  Record,  ch.  xxx. 

*  Classics,  vol.  iii,  pt.  i,  pp.  no,  115. 


COMMERCE 


429 


by  chu.  The  name  of  the  gold  coin  was  catty,  and  that  of 
the  copper  was  coin.^  According  to  Chia  K'uei,  the  mone- 
tary system  of  all  the  four  dynasties,  the  Yii,  the  Hsai,  the 
Yin,  and  the  Chou,  was  the  same.  They  used  gold,  silver, 
and  copper  as  the  three  kinds  of  money. ^  Therefore,  the 
state  of  Ch'u  had  the  treasuries  of  three  kinds  of  money.* 

We  do  not  know  the  ratio  of  the  three  kinds  of  money 
during  ancient  times,  but  we  do  know  it  during  the  Han 
dynasty.  At  the  time  of  Wang  Mang  (561  A.  K.  or  10 
A.  D.),  the  smallest  copper  coin,  weighing  i  chu,  was  the 
unit,  and  the  largest  one,  weighing  11  chu,  was  worth  50  of 
the  smallest  coins;  a  silver  coin,  weighing  8  taels,  was  the 
unit,  and  was  worth  1,000  of  the  smallest  copper  coins;  the 
gold  coin  weighed  i  catty,  and  was  worth  10.000  of  the  small- 
est copper  coins.  These  were  the  ratios  of  the  three  kinds  of 
money  in  the  Han  dynasty.  According  to  these  ratios,  one 
tael  of  silver  exchanged  for  a  little  more  than  one  catty  and 
ten  taels  of  copper,  and  one  tael  of  gold  exchanged  for  a  little 
more  than  eight  catties  and  two  taels  of  copper.  In  fact, 
one  tael  of  gold  was  equal  to  only  five  taels  of  silver.  Ac- 
cording to  Hu  Wei  (his  book  was  published  in  2252,  or 
1701  A.  D.),  in  ancient  times,  the  value  of  all  commodities 
was  measured  by  the  copper  coin,  and  the  value  of  copper 
coin  was  measured  by  the  gold  and  silver  coins.  When  the 
payment  was  large,  gold  and  silver  took  the  place  of  copper ; 
and  when  gold  and  silver  were  insufficient,  copper  took 
their  place,  even  though  they  were  to  be  paid.  This  system 
was  used  to  make  the  three  kinds  of  money  supplement  one 
another.* 

*  History  of  Han,  ch.  xxiv. 

^Narratives  of  Nations,  bk.  iii   (commentary). 

*  Historical  Record,  ch.  xli. 

*  Canonical  Interpretation  of  the  Ts'ing  Dynasty,  vol,  ix,  ch.  vii. 


430       THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

During  the  Ch'in  dynasty,  there  were  only  two  kinds  of 
money.  Gold  was  the  higher  money;  its  weight  was  one 
yi,  twenty  taels;  and  its  name  was  therefore  yi.  Copper 
was  the  lower  money ;  it  was  inscribed  with  the  two  words, 
''  half  tael,"  and  its  weight  conformed  to  the  inscription. 
Han  Kao  Ti  changed  the  weight  of  the  copper  coin,  making 
it  lighter,  and  also  that  of  the  gold  money,  which  was  one 
catty.  Therefore,  in  the  Ch'in  dynasty  and  in  the  beginning 
of  the  Han  dynasty  the  money  systems  were  similar. 

As  China  had  used  gold  as  the  standard  of  money  since 
the  Yii  dynasty,  why  did  she  give  it  up  after  the  Tsin  dy- 
nasty? In  the  first  place,  it  was  because  gold  had  decreased 
in  quantity.  During  the  Chou  and  the  Han  dynasties  gold 
was  used  by  both  government  and  people.  The  Han  and 
the  Northern  Wei  dynasties  allowed  the  punishment  of 
crime  to  be  commuted  with  gold.  In  the  Northern  Wei  dy- 
nasty, however,  on  account  of  the  scarcity  of  gold,  ten  rolls 
of  silk  were  accepted  as  the  equivalent  of  one  tael  of  gold. 
In  the  Tang  dynasty,  the  ransom  was  paid  with  copper  in- 
stead of  gold.  Therefore,  the  decrease  of  gold  began  in 
the  period  of  the  Southern  and  the  Northern  Dynasties. 
The  causes  for  such  a  decrease  were  four.  First,  there  was 
a  great  consumption  of  gold;  the  Buddhist  church  was  the 
chief  consumer,  and  the  court  was  the  second.  Second,  the 
gold  was  exported  to  foreign  countries.  Third,  it  was 
hoarded  by  those  who  kept  it  secretly.  Fourth,  few  gold 
mines  were  opened,  hence  there  was  no  production  on  a 
large  scale.  These  reasons  made  gold  scarce,  and  prevented 
China  from  using  gold  continuously. 

In  the  second  place,  it  was  subject  to  Gresham's  law. 
Except  during  the  reigns  of  Han  Wu  TI  and  Wang  Mang, 
the  Han  dynasty  had  only  two  kinds  cf  money,  and  each 
was  as  much  legal  tender  as  the  other;  hence,  copper  drove 
out  gold.     Although   these  two  metals  were  ranked,   one 


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431 


higher  and  one  lower,  they  were  not  equal  in  circulation, 
and  the  lower  one  became  predominant.  Moreover,  as  the 
commerce  of  the  ancients  was  not  highly  developed,  small 
payments  were  naturally  carried  on  by  the  lower  money 
Therefore  copper  occupied  the  more  influential  place.  The 
chief  trouble  was  that,  as  there  was  no  limitation  put 
upon  the  quantity  of  the  cheaper  money,  the  people  would 
use  it  not  only  for  small  payments,  but  also  for  large  ones. 
They  would  either  hoard  gold  or  use  it  for  other  pur- 
poses, and  gold  gradually  became  only  a  commodity,  but  not 
money.  Therefore,  after  the  Tsin  dynasty,  gold  ceased  to 
be  money. 

Before  the  Ch'in  dynasty,  silver  was  used  as  one  kind  of 
money,  ranking  between  gold  and  copper.  But  from  the 
Ch'in  dynasty  to  the  Kin  dynasty,  silver  was  not  money  at 
all.  It  was  used  as  money  only  during  the  reigns  of  Han 
\Vu  Ti  and  Wang  Mang,  but  this  system  lasted  but  a  short 
time.  During  the  reign  of  Liang  Wu  Ti  (1053-1100), 
southern  China  used  gold  and  silver  as  money;  during  the 
Northern  Chou  dynasty  (1110-1131),  north-western  China 
used  them  also;  and  through  the  Tang  and  the  Sung  dy- 
nasties, southern  China  still  used  silver.  But  such  money 
was  confined  to  certain  localities  Under  the  Kin  dynasty 
(1748,  or  1 197  A.  D.),  silver  began  to  be  coined  as  money, 
and  it  has  been  used  by  the  whole  society  to  the  present  day 

Throughout  Chinese  history,  the  chief  kind  of  money  was 
copper.  For  the  copper  money,  we  can  speak  generally. 
I'^rom  the  Ch'in  dynasty  to  the  Sui  dynasty,  the  best  coin  was 
the  "  five  chu  ",  which  was  first  coined  by  Han  Wu  Ti 
(434,  or  1 18  B.  C. ).  ''  This  coin,"  says  H.  B.  Morse,  '*  also 
easily  obtainable  to-day,  is  beautifully  cast,  0.95  inch  in 
diameter,  weighing  to-day  from  46  to  51  grains."  From 
the  Tang  dynasty  to  the  present  day,  the  Kai-yiian  coin  has 
been  of  the  standard  type,  which  was  first  coined  by  Tang 


432        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

Kao  Tsu  (1172,  or  621  A.  D.).  With  a  diameter  of  0.95 
inch,  it  was  presumably  one-tenth  of  the  modern  tael  of  570 
to  580  grains/ 

Paper  money  was  a  Chinese  invention.  The  OiHcial  Sys- 
tem of  Chou  speaks  of  the  li  pii.^  Cheng  Chung,  the  com- 
mentator (died  in  634,  or  83  A.  D.),  says:  "  It  was  a  piece 
of  cloth,  stamped  with  seals  and  written  with  words,  two 
inches  wide  and  two  feet  long.  It  was  used  as  money  for 
the  exchange  of  things."  ^  Ho  Yi-sun,  living  at  the  be- 
ginning of  the  Yuan  dynasty,  says  that  it  was  like  the  paper 
money  of  modern  times.  According  to  the  same  book,  there 
was  the  "  written  tally."  *  It  was  made  of  a  piece  of  wood, 
which  was  divided  into  two  parts  with  inscription  in  their 
edge.  Such  a  tally  was  paid  and  accepted  by  the  buyer  and 
seller,  and  it  was  inspected  by  the  auditor  of  price.  It  re- 
sembled the  check  of  modern  times.  Therefore,  the  forms 
of  paper  money  were  developed  in  the  Chou  aynasty,  al- 
though the  materials  were  not  paper  because  at  that  time 
there  was  no  paper. 

The  paper  money  issued  by  the  government  was  an  inven- 
tion of  the  Tang  dynasty.  During  the  middle  part  of  that 
dynasty,  there  was  a  scarcity  of  money;  hence,  money  was 
not  allowed  to  be  taken  out  of  certain  localities.  There- 
fore, during  the  reign  of  Tang  Hsien  Tsung  (1357-1371), 
when  merchants  came  to  the  capital,  they  deposited  their 
money  in  the  offices  which  represented  the  different  pro- 

^  Here  the  English  inch.  Currency  in  China,  p.  4.  Morse  also  says : 
"  Under  the  Chou  dynasty,  on  the  evidence  of  the  coins,  the  Hang  of 
24  chu  was  probably  97.5  grains,  giving  4.06  grains  as  the  weight  of 
the  chu."—V.  8. 

'  Ch.  xiv. 

'  Even  though  his  commentary  may  not  be  correct,  it  is  obvious  that 
he  had  the  conception  of  paper  money. 
*Ch.   XV. 


COMMERCE 


433 


vinces  at  the  capital,  and  received  bonds  from  them.  In  this 
way,  wherever  they  went,  they  drew  money  with  their  bonds 
very  easily.  This  was  called  ''  flying  money."  Such  a 
practice,  however,  was  prohibited  by  the  central  govern- 
ment, because  it  thought  that  the  offices  would  keep  the 
money  out  of  circulation,  and  the  prices  of  commodities 
would  be  lowered.  But  the  result  was  still  worse  than 
before.  Therefore,  in  1363  (812  A.  D.),  the  government 
opened  its  own  offices  at  the  cipital  for  carrying  on  the 
business  of  flying  money — that  is,  the  government  issued 
bonds  to  depositors,  and  they  exchange  bonds  for  money 
at  the  great  cities  of  different  provinces.  This  was  the  first 
time  that  the  government  issued  paper  money.  This  system 
prevailed  during  the  earlier  part  of  the  Sung  dynasty  (1511- 

1573)- 

During  the  Sung  dynasty,  while  the  flying  money  was 

like  the  bill  of  exchange,  true  paper  money  was  introduced 
by  Chang  Yung  in  the  province  of  Szechuan.  This  also  was 
a  spontaneous  growth.  On  account  of  the  weight  and  trou- 
blesomeness  of  the  iron  money,  about  1556  (1005  A.  D.).the 
people  of  that  province  issued  notes  privately  which  were 
called  *'  changelings,"  for  the  convenience  of  exchange, 
and  the  notes  were  managed  by  sixteen  rich  houses..  In 
later  times,  when  the  rich  houses  became  bankrupt,  and 
were  unable  to  pay  their  debts,  there  arose  many  lawsuits. 
Therefore,  about  1572.  the  government  established  a  bank 
in  that  province  for  the  management  of  the  changelings. 
After  1574  this  kind  of  paper  money  prevailed  over  the 
whole  empire;  and  throughout  the  Sung  dynasty,  there  were 
many  kinds  of  paper  money. 

Passing  through  the  Kin,  the  Yiian,  and  the  Ming  dynas- 
ties, the  chief  kind  of  Chinese  money  was  paper,  especially 
during  the  Viian  dynasty.  The  only  difference  was  that 
before  the  Kin  dynasty  the  paper  money  represented  only 


434       THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

copper,  and  that  after  the  Kin  dynasty  it  represented  both 
copper  and  silver.  But  it  would  take  too  long  to  narrate  the 
whole  history  of  Chinese  paper  money,  and  the  facts  men- 
tioned above  are  sufficient  to  show  its  origin. 

We  have  no  intention  of  discussing  the  private  banking 
system,^  but  give  only  a  general  conception  of  the  develop- 
ment of  government  banks.  According  to  the  Official  Sys- 
tem of  Chou,  there  was  a  government  bank  called  Money 
Treasury.  It  kept  the  money  which  came  from  different 
sources ;  bought  and  sold  special  goods ;  and  lent  money  to 
the  people  either  with  or  without  interest.^  This  was  the 
first  government  bank  of  China. 

After  the  Chou  dynasty,  there  was  no  government  bank. 
Even  during  the  Tang  dynasty,  when  the  flying-money 
system  was  in  operation,  there  was  no  special  bank,  although 
there  was  a  system  of  banking.  The  true  government  bank 
was  established  in  the  beginning  of  the  Sung  dynasty  (1521, 
or  970  A.  D.),  for  the  operation  of  the  flying-money  sys- 
tem. It  was  called  The  Bank  of  Convenient  Money.  In 
later  times,  there  were  many  banks  for  the  management  of 
the  "  changelings  "  and  the  "  exchanges."  During  the  Kin 
dynasty,  the  Exchange  Bank  was  established  in  1749  (1198 
A.  D.)  ;  and  during  the  Yuan  dynasty,  the  Level  Standard 
Bank  was  established  in  1814  (1263  A.  D.),  and  its  branches 

1  China  has  a  very  beneficial  institution,  known  as  the  "  money  asso- 
ciation." Each  member  contributes  periodically  a  certain  amount  of 
money,  and  may  get  a  large  sum  of  it  by  offering  the  highest  premium 
in  a  secret  competitive  bidding,  or  by  lottery  without  interest  when 
there  is  no  demand  for  money.  These  associations  are  like  co- 
operative banks,  people's  banks,  and  saving  banks.  We  are  told  by 
tradition  that  this  system  was  invented  by  Mang  Kung,  a  hermit,  liv- 
ing about  the  end  of  the  Latter  Han  dynasty  (771  A.  K.  or  220  A.  D.). 

The  great  existing  banks  were  established  by  the  people  of  the 
Shansi  province  centuries  ago,  and  they  have  branches  throughout  the 
whole  empire. 

2  See  infra,  pp.  587-8. 


COMMERCE 


435 


were  opened  in  different  provinces.     All  these  banks  were 
for  the  issue  and  redemption  of  paper  money. ^ 

2.  Principles  of  Money 

(a)  General  Frinciplcs 

Confucius  does  not  give  many  principles  about  money, 
but  we  may  set  forth  a  few.  V'wst,  money  is  necessary  for 
the  economic  life  of  the  people,  and  its  importance  is  next 
only  to  that  of  food.  Therefore,  according  to  the  "  Great 
Model/'  first  is  food  and  second  is  commodities,  among 
which  money  is  the  chief  thing.  Second,  money  is  a  com- 
modity. It  is  a  part  of  wealth,  but  it  is  not  the  only  form 
of  wealth.  The  *'  Great  Model,"  therefore,  includes  it  in 
the  term  commodities,  and  no  one  misunderstands  and 
thinks  that  money  is  identified  with  all  kinds  of  wealth." 
Third,  money  is  a  medium  of  exchange.  The  Canon  of 
Poetry  says:  ''A  simple-looking  fellow  brings  money  to 
buy  silk."  "  Fourth,  according  to  the  '*  Tribute  of  Yii," 
there  are  three  kinds  of  money — gold,  silver  and  copper. 
Although  this  seems  a  trimetallic  system,  there  is  theoreti- 
cally a  gold  standard,  because  gold  is  the  highest  kind  of 
money,  and  silver  and  copper  are  the  middle  and  the  lowest. 
If  we  .state  it  in  modern  terms,  we  may  say  that  gold  is  the 
standard,  and  that  the  silver  and  copper  are  the  subsidiary 
money.*     These  are  the  principles  of  Confucius  himself. 

Among  the  Confucians,  there  are  many  principles  of 
money.  Kuan  Tzu  was  not  a  Confucian;  but  his  theory  was 
derived  from  the  ancient  kings,  and  it  was  common  to  the 

'  At  the  present  time  the  money  and  banking  system  has  not  been 
well  established.  A  central  bank  was  oi)ened.  however,  in  2456  (1905 
A.  D.),  and  the  silver  standard  was  adopted  in  2461   ( 1910  A.  D.). 

'  S'^e  suf^ra,  p.  50- 

'  Classics,  vol.  iv,  pt.  i.  p.  97. 

*  See  supra,  p.  428. 


436        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

Confucians.  Therefore,  we  give  his  theory.  According  to 
him,  money  itself  must  have  high  value.  Because  it  is  an 
object  which  is  difBcult  to  obtain,  it  can  measure  the  value 
of  other  things.  Therefore,  he  puts  pearl  and  jade  as  the 
highest  kind  of  money,  gold  as  the  middle,  and  copper  as 
the  lowest.     He  says : 

These  three  kinds  of  money  cannot  protect  you  against  cold 
if  you  hold  them,  nor  can  they  satisfy  you  against  hunger 
if  you  eat  them.  By  the  use  of  them,  however,  the  ancient 
kings  guarded  wealth,  controlled  human  affairs,  and  equal- 
ized the  world.  Therefore,  money  was  called  standard,  which 
means  that  it  makes  the  rise  and  fall  of  price  not  affect  the 
standard  itself. 

This  theory  has  been  accepted  by  the  Confucians.^  Indeed,, 
the  chief  function  of  money  is  to  serve  as  the  standard  of 
value. 

(b)  Quantity  Theory 
The  most  important  theory  is  the  quantity  theory.  It  is 
the  theory  of  the  Confucians,  but  it  had  arisen  before  Con- 
fucius. According  to  the  OiJicial  System  of  Chou,  when 
there  was  a  famine  or  epidemic,  the  government  did  not 
tax  commodities,  but  coined  money.^  According  to  the 
Narratives  of  Nations,  in  28  A.  K.  (524  B.  C),  Duke  Mu 
of  Shan  says : 

In  ancient  times,  when  there  was  any  natural  calamity,  the 
government  coined  money  in  accordance  with  its  quantity  and 
its  value,  for  the  relief  of  the  people.  If  the  people  suffered 
from  the  cheapness  of  money,  the  government  coined  dear 
money  and  put  it  in  circulation  for  them.  Therefore,  the  dear 
money  controlled  the  cheap  money  in  the  market,  and  all  the 

*  General  Research,  ch.   viii. 
'^  Ch.  xiv. 


COMMERCE 


437 


people  got  the  benefit.  If  they  felt  the  money  too  dear,  the 
government  coined  more  cheap  money  and  put  it  in  circula- 
tion, but  did  not  abolish  the  dear.  Therefore,  the  cheap  money 
controlled  the  dear  money  in  the  market,  and  all  the  people 
were  also  benefited.^ 

This  theory  needs  much  explanation.  First,  we  must 
understand  why  there  should  be  a  coinage  of  money  dur- 
ing a  period  of  natural  calamities.  In  ancient  times,  not 
only  were  the  metals  money,  but  grain,  too,  was  used  as 
money.  Grain,  however,  was  not  a  standard  of  value, 
but  only  a  medium  of  exchange.  Therefore,  whenever  there 
was  any  natural  calamity,  it  was  like  a  crisis  of  modern 
times,  because  grain  was  very  dear,  and  was  not  suffi- 
cient to  be  used  as  money.  Hence,  the  government  supplied 
metallic  money  to  take  the  place  of  grain,  and  save  it  from 
being  circulated,  in  order  to  leave  it  for  food  of  the  people. 
This  was  why  money  was  coined  at  such  a  time. 

According  to  the  quantity  theory,  if  money  is  more  plenti- 
ful, prices  are  higher.  Now,  when  grain  is  dear  during 
a  bad  time,  why  should  money  be  coined  at  all?  It  would 
raise  the  price  of  grain.  In  order  to  answer  this  ques- 
tion, we  must  understand  the  situation  of  the  ancients.  At 
that  time  the  people  were  mostly  farmers.  They  possessed 
their  own  grain  for  food,  but  could  not  get  other  neces- 
saries unless  they  exchanged  for  them  their  grain.  If 
they  did  so,  their  grain  would  not  be  sufficient  for  their 
own  use.  Therefore,  the  government  supplied  money  for 
them,  in  order  to  enable  them  to  exchange  it  for  other 
things.  This  was  simply  to  enlarge  their  purchasing 
power,  but  not  to  increase  the  price  of  grain  particularly. 
Even  if  the  farmers  had  not  sufficient  food,  they  could  buy 
it  with  money,  otherwise  they  had  no  medium  of  exchange 

»  Bk.  iii. 


438        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

Sit  all.  Therefore,  even  though  the  increased  money  raised 
the  price  of  food  a  little,  it  still  would  be  better  for  them 
than  if  they  had  no  money  at  all.  But  how  could  the 
farmers  get  the  money?  It  would  be  lent  or  distributed 
to  them  by  the  government  during  such  a  bad  time.  In 
short,  the  ancient  government  coining  money  for  such  pur- 
poses was  like  the  modern  government  issuing  bank  notes 
for  the  relief  of  a  crisis.  There  was  really  great  demand  for 
money,  but  not  an  over-supply  of  it. 

Moreover,  during  famine  or  epidemic,  commodities  in 
general  were  cheap,  except  grain.  The  purchasing  power 
of  society  was  diminished,  and  the  demand  for  commodities 
was  lowered.  The  merchants  would  be  ruined  or  discour- 
aged, and  the  whole  society  became  stagnant.  At  such  a 
time,  copper  was  also  very  cheap.  Therefore,  the  govern- 
ment took  the  cheap  copper  and  transformed  it  into  money. 
Then  it  issued  the  money  to  the  market  for  the  raising  of 
the  price  of  commodities,  in  order  to  aid  the  merchants; 
and,  if  the  merchants  could  not  sell  their  goods,  it  would 
buy  them  with  the  money,  so  that  they  could  utilize  the 
money  to  do  their  business  anywhere,  and  the  whole  society 
was  stimulated.  This  explains  why  the  government  coined 
money  during  a  bad  time.  Indeed,  it  was  not  contrary  to 
the  quantity  theory,  but  in  harmony  with  it. 

Second,  let  us  take  up  the  quantity  theory  proper.  Ac- 
cording to  the  Duke  Mu  of  Shan,  the  coinage  of  money 
should  be  in  accordance  with  its  quantity  and  its  value. 
When  there  is  an  over-supply  of  money,  its  value  is  low. 
and  the  price  of  commodities  is  high.  Therefore,  the  gov- 
ernment should  reduce  the  quantity  of  cheap  money,  and 
issue  dear  money.  The  dear  money  which  is  higher  in  value 
is  called  mother,  and  the  cheap  money  is  called  son.  The 
mother  should  be  used  as  the  standard,  and  the  son  as  sub- 
sidiary.    For  instance,  if  the  price  of  a  thing  is  the  sum  of 


COMMERCE 


439 


eighty  coins,  fifty  coins  should  be  paid  in  the  mother,  and 
the  other  thirty  in  the  son.  This  is  a  single  standard.  It  is 
said  then  that  the  mother  is  controlling  the  son  in  circula- 
tion. This  means  a  reduction  of  its  quantity,  and  an  in- 
crease of  its  value.  Hence,  price  is  lowered.  On  the  other 
hand,  when  money  is  under-supplied,  its  value  is  high, 
and  prices  are  low.  Therefore,  tlie  government  should  issue 
more  cheap  money,  but  not  abolish  the  dear  money.  Then 
the  people  can  use  the  cheap  money  for  general  transac- 
tions, while  the  dear  money  is  used  only  for  large  pay- 
ments. The  son,  not  the  mother,  becomes  the  standard. 
Then  it  is  said  that  the  son  is  controlling  the  mother  in  cir- 
culation. This  means  an  increase  in  quantity,  and  a  reduc- 
tion in  value.  Hence  the  price  is  raised.  This  is  a  monometal- 
lic system,  and  the  government  controls  the  quantity  of  both 
kinds  of  money  in  order  to  adjust  their  value  and  the  prices. 
Although  there  are  two  kinds  of  money,  there  is  only  one 
standard  at  a  certain  period  of  time.  But  the  one  standard 
is  alternately  changed  with  the  other,  according  to  the  quan- 
tity of  money.     This  is  the  quantity  theory. 

The  quantity  theory  has  been  recognized  by  all  the  states- 
men and  scholars.  Therefore,  we  shall  not  take  up  any 
other  authorities,  except  to  give  the  siatement  of  Chia  Yi. 
He  says :  "  The  government  accumulates  copper  for  the 
control  of  the  value  of  money.  When  the  value  is  low,  it 
lessens  the  quantity  by  some  policy;  and  when  it  is  high, 
it  distributes  the  money  by  some  policy.  Hence,  the  price 
of  commodities  must  be  equalized."  According  to  this 
theory,  the  value  of  money  is  low  because  its  quantity  is 
too  much :  hence,  it  should  be  withdrawn.  Its  value  is  high 
because  its  quantity  is  insufficient ;  hence,  it  should  be  dis- 
tributed. This  is  the  control  of  the  quantity  of  money  by 
the  government,  and  it  adjusts  the  level  of  prices.  This  is 
the  common  theorv  of  the  Confucians. 


440        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

(c)  Coinage 

From  the  beginning  of  history,  money  was  always  coined 
by  the  government.  It  was  only  during  the  reign  of  Han 
Wen  Ti  {^^yy,  or  175  B.  C),  that  the  people  were  allowed 
to  coin  money.  Against  this  law  Chia  Yi  gave  his  protest. 
His  theory  is  as  follows:  (i)  It  will  induce  the  people  to 
make  great  profit  on  a  small  part  of  illegal  alloy,  which 
cannot  be  stopped  by  punishment.  (2)  It  will  destroy  the 
universal  standard,  and  introduce  confusion  into  the  market. 
(3)  It  will  encourage  the  people  to  leave  the  farms  for  the 
coining  of  unlawful  money.  These  are  the  great  calamities. 
On  the  other  hand,  if  coinage  is  exclusively  controlled  by 
the  government,  there  will  be  seven  blessings,  (i)  The 
people  are  saved  from  crime.  (2)  The  confidence  of  the 
people  is  established.  (3)  The  miners  and  the  coiners  will 
return  to  their  farms.  (4)  The  government  can  control  the 
quantity  of  money  and  equalize  prices.^  (5)  The  gov- 
ernment can  control  the  social  order.  (6)  The  government 
can  control  the  demand  for  and  the  supply  of  commodities.^ 
(7)  It  can  compete  with  the  Huns  by  financial  control. 
Wen  Ti  did  not  accept  Chia  Yi's  advice.  In  408  ( 144  B.  C. ) , 
this  law  was  abolished  by  Ching  Ti,  and  the  law  of  punish- 
ing the  coiner  by  death  was  enacted.  Hence,  the  statement 
of  Chia  Yi  has  become  a  classical  theory. 

For  the  prevention  of  illicit  coining,  money  should  be 
according  to  the  standard  quality  and  weight.  In  1033 
(482  A.  D.),  K'ung  Chi,  a  courtier,  said  that  the  reason 
illicit  coining  cannot  be  stopped  by  severe  punishment  is 
because  the  government  coins  bad  money.  Presuming  that 
money  is  useless  except  as  a  medium  of  exchange,  the  gov- 
ernment makes  the  money  cheaper  and  more  in  quantity. 
Its  object  is  simply  to  save  the  expense  of  metal  and  labor, 

1  See  supra,  p.  439.  2  gge  infra,  pp.  552-6. 


COMMERCE 


441 


but  the  results  are  very  bad.  Ibis  theory  was  recognized 
as  the  fundamental  principle  of  coinage  by  Lii  Tsu-chien, 
a  great  Confucian  of  the  Sung  dynasty  (1688-1732,  or 
1137-1181  A.  D.).  He  said  that  the  reason  the  state  coins 
money  is  for  the  establishment  of  the  standard  of  value,  and 
not  for  the  making  of  profit.  Those  who  do  not  under- 
stand economic  principles  clearly,  recognize  as  a  profit  only 
the  amount  of  seigniorage;  but  it  is  merely  a  small  profit, 
while  the  controlling  power  of  the  state  is  a  great  profit. 
If  the  government  does  not  save  the  expense,  coinage  has 
no  profit.  If  it  has  no  profit,  illicit  coining  will  not  arise. 
If  there  is  no  illicit  coining,  the  state  controls  exclusively 
the  power  of  issuing  and  withdrawing  money.  As  the  gov- 
ernment does  not  lose  the  power  of  coining  money,  it  is 
great  profit.  If  it  looks  only  for  the  small  profit,  the  money 
will  be  debased  in  weight  and  quality.  Then  all  the  bad 
people  can  coin  money,  and  the  state  loses  the  controlling 
power.  It  is  a  loss  of  great  profit  for  the  sake  of  small 
profit.  Therefore,  good  money  is  the  prevention  of  the 
illicit  coining,  because  there  is  no  profit  in  the  coining  of 
money. 

According  to  history,  the  system  of  free  coinage  was  de- 
veloped in  1046  (495  A.  D.).  During  the  reign  of  Shao- 
wen  Ti  of  the  Northern  Wei  dynasty,  the  government 
opened  the  mints  and  prepared  the  coiners.  If  the  people 
wished  to  coin  money,  they  were  allowed  to  coin  it  there. 
The  copper  was  required  to  be  of  the  standard  quality  with- 
out any  mixture.  This  law  was  probably  for  the  encour- 
agement of  using  money  and  for  the  supply  of  copper  to  the 
mint,  because  Shao-wen  Ti  was  the  first  one  of  the  Northern 
Wei  dynasty  who  decreed  that  people  should  use  money  and 
who  established  the  mint.  If  we  put  this  law  into  modem 
terms,  it  was  free  coinage. 


4-12        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

(d)  Paper  Money 

To  regulate  the  value  of  paper  money,  some  provision 
for  redemption  is  necessary.  This  theory  was  advocated 
by  Shen  Kai,  and  approved  by  Sung  Kao  Tsung  (1678- 
1713).  They  held  that  the  government  should  always  have 
cash  amounting  to  one  million  strings.  If  the  price  of  the 
''  changelings "  decreases,  the  government  should  imme- 
diately buy  the  paper  with  the  cash.  In  this  way  paper 
money  will  have  no  evil  consequences.  Ma  Tuan-lin  also 
gives  a  very  good  theory  about  paper  money.  He  says: 
"  Formerly,  making  paper  on  account  of  the  heaviness  of 
cash,  paper  was  really  convenient;  now,  making  paper  on 
account  of  the  scarcity  of  cash,  paper  is  really  evil."  Ac- 
cording to  their  opinions,  paper  can  represent  money,  but 
cannot  be  money  itself.  In  other  words,  paper  can  be  used 
when  there  is  specie  payment;  but  it  should  not  be  used 
when  there  is  no  specie  payment.' 

There  is  a  very  conclusive  theory  given  by  Yeh  Tzu-ch*i.^ 
He  says: 

The  paper  money  of  the  Yuan  dynasty  was  like  the  "  change- 
lings "  and  the  "  exchanges  "  of  the  Sung  dynasty,  and  the 
"  changeable  paper  "  of  the  Kin  dynasty.  During  their  good 
time,  they  all  used  paper  to  represent  cash.  But,  during  their 
decay,  when  their  money  was  not  sufficient,  they  simply  manu- 
factured a  great  quantity  of  paper  to  be  money.  Therefore, 
the  paper  money  was  unable  to  measure  the  value  of  exchange, 
and  all  commodities  were  blocked  in  the  market.  Now,  if  we 
want  to  establish  paper  money,  it  is  necessary  to  reserve  cash 
as  a  fund.     It  should  be  like  the  certificate  of  tea  or  salt; 

^  Since  1682  A.  K.  (1131  A.  D.),  the  banking  bureau  has  co-operated 
with  the  commodity-taxing  bureau,  and  commodities  such  as  tea,  salt, 
incense,  alum,  etc.,  have  been  used  unconsciously  for  the  redemption  of 
paper  money,  besides  cash  redemption.     General  Research,  ch.  ix. 

2  His  book  was  written  in  1929  A.  K.  or  1378  A.  D. 


COMMERCE 


443 


when  the  certificate  is  presented,  the  tea  or  salt  can  be  ob- 
tained immediately.  If  paper  money  is  like  this,  how  can 
there  be  the  evil  of  not  accepting  paper?  During  the  year  of 
their  reformation,  they  should  establish  banks  in  every  pre- 
fecture and  district,  for  the  keeping  of  ?.  certain  amount  of 
cash;  and  should  issue  paper  according  to  the  system  of  money 
certificate.  They  should  do  as  Chang  Yung,  who  used  the 
"  changelings  "  in  Szechuan,  and  should  choose  the  rich  houses 
to  manage  the  banks.  When  the  certificate  comes,  the  cash 
goes  out ;  and  when  the  certificate  goes  out,  the  cash  comes  in. 
Take  the  cash  as  the  mother,  and  take  the  certificate  as  the 
son.  The  mother  and  son  supplement  each  other,  and  control 
the  price  of  all  commodities.  When  the  price  is  low,  paper 
should  be  issued ;  and  when  the  price  is  high,  it  should  be  with- 
drawn. Judging  and  adjusting  the  price  according  to  the 
times,  there  is  no  reason  why  paper  money  should  not  be  used. 
It  is  like  the  water  of  a  pond.  When  the  way  of  coming-in 
and  the  way  of  going-out  are  equal,  the  water  will  naturally 
flow  and  always  be  fresh.  If  only  the  way  of  coming-in  is 
open,  but  the  way  of  going-out  is  closed,  the  water  will  be  stag- 
nant, and  the  only  result  will  be  an  overflow. 

According  to  his  theory,  the  best  policy  for  controlling 
paper  money  is  redemption,  which  is  the  way  of  going-out. 
But  how  can  it  be  redeemed?  It  is  by  the  reserve  fund  of 
cash,  which  is  the  mother.  This  is  the  fundamental  prin- 
ciple of  paper  money.  Adding  to  this,  it  should  be  also  in 
harmony  with  the  quantity  theory,  namely,  the  paper  should 
not  be  issued  beyond  a  certain  limit  even  though  there  is  the 
reserve  of  cash.  But  how  can  we  know  the  exact  amount 
according  to  which  so  much  paper  should  be  issued?  It  is 
judged  by  the  price  of  all  commodities.  Indeed,  price  is 
the  barometer  of  the  quantity  of  money,  either  paper  or  coin. 
This  is  the  theory  of  Yeh  Tzu-ch'i. 


444        ^^^  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

(e)  Gresham's  Law 
Fourth,  since  paper  money  was  used  under  the  Sung  dy- 
nasty, there  was  a  theory  like  Gresham's  Law.     Yeh  Shih 
says: 

The  men  who  do  not  inquire  into  the  fundamental  cause  simply 
think  that  paper  should  be  used  when  money  is  scarce.  But, 
as  soon  as  paper  is  employed,  money  becomes  still  less.  There- 
fore, it  is  not  only  that  the  sufficiency  of  goods  cannot  be  seen, 
but  also  that  the  sufficiency  of  money  cannot  be  seen. 

His  statement  combines  the  quantity  theory  and  Gres- 
ham's Law.  For  the  former  theory,  he  means  that  the 
wealth  of  a  nation  is  dependent  upon  the  increase  of  goods, 
and  not  upon  the  increase  of  money.  When  goods  are 
abundant,  they  will  be  cheap,  and  the  value  of  money  will 
be  high.  If  goods  are  not  sufficient,  they  cause  the  value  of 
money  to  be  low.  Therefore,  he  says  that  the  sufficiency 
of  goods  cannot  be  seen,  because  he  compares  the  quantity 
of  money  with  that  of  goods.  For  the  latter  theory,  he 
means  that  paper  drives  out  money  when  they  are  both  cir- 
culated in  the  same  market.  As  paper  is  employed,  money 
is  kept  out  of  circulation.  Therefore,  he  says  that  the  suffi- 
ciency of  money  cannot  be  seen.  This  is  in  principle  like 
Gresham's  Law.  Hence,  we  may  say  that  Gresham's  Law 
was  discovered  by  Yeh  Shih,  because  he  saw  the  fact  that 
paper  drives  out  money. 

Yuan  Hsieh  states  Gresham's  Law  still  more  clearly.     In 
1774  (1223  A.  D.),  he  says: 

Now,  the  officials  are  anxious  to  increase  wealth,  and  want 
to  put  both  iron  money  and  copper  money  in  circulation.  If 
money  were  suddenly  made  abundant  during  a  period  of  scar- 
city, it  should  be  very  good.  But  the  fact  never  can  be  so. 
Formerly,  because  the  paper  money  was  too  much,  the  copper 
money  became  less.     If  we  now  add  the  iron  money  to  it, 


COMMERCE 


445 


should  not  the  copper  money  but  become  still  less  ?  Formerly, 
because  the  paper  money  was  too  much,  the  price  of  commo- 
dities was  dear.  If  we  now  add  the  iron  money  to  the  market, 
would  the  price  not  become  still  dearer?  .  .  .  When  we  look 
over  the  different  provinces,  the  general  facts  are  these. 
Where  paper  and  money  are  both  employed,  paper  is  super- 
abundant, but  money  is  always  insufficient.  Where  the  copper 
money  is  the  only  currency  without  any  other  money,  money 
is  usually  abundant.  Therefore,  we  know  that  the  paper  can 
only  injure  the  copper  money,  but  not  help  its  insufficiency.* 

According  to  ^'ua^  Hsieh,  the  evil  of  bimetallism  is 
very  clear.  If  iron  money  is  employed  side  by  side  with 
copper  money,  it  simply  makes  the  copper  still  less,  because 
iron  is  cheaper  than  copper,  and  the  cheaper  money  always 
drives  out  dearer  money.  It  is  exactly  the  case  when  paper 
is  employed  side  by  side  with  copper  money.  If  they  both 
are  employed,  the  copper  will  be  driven  out.  If  copper  is 
the  only  money,  it  will  remain  sufficient.  Therefore,  the 
monetary  system  should  choose  a  single  standard.  This 
principle  is  true  in  every  case.  It  is  true  between  iron  and 
copj)er,  but  also  true  between  silver  and  gold.  In  fact,  it 
is  Gresham's  Law. 

VI.    COMMKRCIAL    KEGULATIONS 

According  to  the  theory  of  Confucians,  the  government 
should  take  positive  measures  to  regulate  the  commerce 
of  the  peoj)lc.     The  *'  Royal  Regulations  "  says: 

All  who  have  charge  of  the  prohibitions  for  the  regulation  of 
the  multitudes  do  not  forgive  transgressions  of  them. 

( 1 1  Those  who  have  rank-tokens,  the  long  or  the  round,  and 
gilt  libation-cups  are  not  allowed  to  sell  them  in  the  market 
places;  [2|  nor  are  any  allowed  to  sell  robes  or  chariots,  the 
gift  of  the  king;  [3]  or  vessels  of  an  ancestral  temple;  [4]  or 
victims  for  sacrifice;  [5]  or  instruments  of  war;   [6]  or  ves- 

•  Continuation  of  the  General  Research,  cli.  vii. 


446       THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

sels  which  are  not  according  to  the  prescribed  measurements ; 
[7]  or  chariots  of  war  which  are  not  according  to  the  same; 
[8]  or  cloth  or  silk,  fine  or  coarse,  not  according  to  the  pre- 
scribed quality,  or  broader  or  narrower  than  the  proper  rule; 
[9]  or  of  illegitimate  colors,  confusing  those  that  are  cor- 
rect; [10]  or  cloth,  embroidered  or  figured;  or  vessels  male 
with  pearls  or  jade;  [11]  or  clothes,  or  food,  or  drink,  in  any 
way  extravagant;  [12]  or  grain  which  is  not  in  season,  or  fruit 
which  is  unripe;  [13]  or  wood  which  is  not  fit  for  the  axe; 
[14]  or  birds,  beasts,  fishes,  or  reptiles,  which  are  not  fit  to 
be  killed.  At  the  frontier  gates,  those  in  charge  of  the  prohibi- 
tions examine  travelers,  forbidding  such  as  wear  strange 
clothes,  and  taking  note  of  such  as  speak  a  strange  language.^ 

There  are  fourteen  prohibitions,  and  we  may  classify 
them  into  four  classes,  (a)  From  the  first  to  the  fifth  pro- 
hibition, the  things  should  not  be  possessed  by  the  com- 
mon people — rules  for  the  maintaining  of  social  order,  (b) 
From  the  sixth  to  the-  ninth,  the  things  are  not  good  for 
consumption,  and  these  four  prohibitions  maintain  the  legal 
standards,  (c)  From  the  tenth  to  the  eleventh,  the  two 
prohibitions  are  for  the  prevention  of  extravagance  and  dis- 
sipation. (d)From  the  twelfth  to  the  fourteenth,  the  rules 
refer  to  things  which  are  not  ready  to  be  consumed ;  hence, 
these  three  prohibitions  promote  the  mature  growth  of 
natural  things  on  the  one  hand,  and  prevent  the  harm  which 
may  come  from  unseasonable  consumption  on  the  other. 
All  these  fourteen  prohibitions  are  examples  of  commercial 
regulations. 

According  to  the  Official  System  of  Chou,  there  is  a  con- 
troller of  market  (ssu  shih)  to  take  charge  of  commer- 
cial regulations.  Under  his  administration,  there  are  many 
subordinate  officers.  For  the  convenience  of  the  reader,  we 
may  classify  the  commercial  rules  under  the  following  six 

^Li  Ki,  bk.  iii,  p.  238. 


COMMERCE 


447 


heads :  First,  the  market-places  are  divided  up  in  accord- 
ance with  the  offices  of  officers  and  the  shops  of  merchants. 
The  shops  are  also  distinguished  from  each  other  by  the  dif- 
ferent sorts  of  goods,  that  is,  a  certain  group  of  shops  is 
arranged  together  for  the  sale  of  certain  goods.  Second, 
the  times  of  doing  business  are  divided  up  into  three  periods 
— the  noon,  the  morning  and  the  evening.  The  most  popu- 
lar period  is  at  noon,  and  all  the  different  people  are  repre- 
sented ;  hence,  it  is  called  the  great  market.  In  the  morning 
market,  the  chief  participants  are  the  merchants ;  and  in  the 
evening  market,  the  chief  participants  are  the  small  sellers 
and  buyers.  Third,  there  is  the  inspector  (hsii  sliili)  in 
every  twenty  shops,  and  the  subordinate  places  under  him 
are  filled  up  by  business  men,  for  the  prohibition  of  false 
goods  and  the  prevention  of  deceitful  methods.  If  there  is 
any  misrepresentation  or  deceit,  the  seller  shall  be  punished 
by  him. 

Fourth,  prices  are  controlled  by  the  government.  For 
this  object,  there  are  six  policies,  (a)  In  every  shop,  there 
is  the  superintendent  of  the  shop  (ssu  chang).  Within  a 
shop,  the  goods  are  arranged  in  a  certain  way.  Those  which 
have  the  same  name  but  different  value  are  separated  in 
a  great  distance.  For  examples,  the  different  pearls  and 
jades  are  called  by  the  names  of  pearl  and  jade,  but  their 
values  show  great  differences.  Since  the  merchants  find  it 
easy  to  impose  upon  farmers  and  ignorant  people  these 
goods  must  be  arranged  so  as  to  be  easily  distinguished. 
On  the  other  hand,  if  their  quality  is  quite  similar  to  each 
other,  they  may  be  arranged  within  a  short  distance.  To 
distinguish  the  quality  of  goods  is  the  basis  of  regulating 
price,  (b)  All  goods  have  a  fixed  price,  and  its  difference 
is  simply  according  to  the  quantity.  In  this  way,  the 
buyers  are  encouraged  to  come  in  (c)  There  'S  the  master 
of  merchants  (ku  sliili)   in  every  twenty  shops,  to  fix  the 


448        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

price  according  to  the  cost.  When  there  is  any  natural 
calamity,  the  merchants  are  not  allowed  to  raise  their 
price.  For  example,  during  a  famine  grain  should  be  sold 
at  the  natural  price;  and  during  a  great  epidemic,  coffins 
should  be  sold  in  the  same  way.^  Moreover,  seasonal 
things  are  also  regulated  by  the  natural  price.  In  short, 
the  price  should  be  constant,  (d)  There  is  the  auditor  of 
price  {chih  jen)  to  oversee  the  prices  of  the  most  valuable 
things,  through  whom  the  transactions  are  carried  on.  (e) 
By  the  raising  and  lowering  of  price,  the  government  con- 
trols the  supply.  When  a  thing  is  not  in  existence,  the  gov- 
ernment causes  it  to  exist;  when  a  thing  is  useful,  it  causes 
it  to  be  abundant;  when  a  thing  is  harmful,  it  causes  it  to 
be  extinguished;  when  a  thing  is  luxurious,  it  causes  it  to  be 
lessened.  The  former  two  policies  are  carried  out  by  the 
raising  of  prices;  and  the  latter  two  by  lowering  them,  (f) 
There  is  the  government  bank  to  buy  the  goods  which  the 
people  cannot  sell,  and  to  lend  them  out  when  the  people 
need  them.  In  this  way,  the  government  adjusts  the  de- 
mand and  supply,  and  prices  are  kept  at  a  fixed  level. 

Fifth,  all  the  transactions  of  buying  and  selling  are  done 
by  bills  of  sale  and  purchase.  These  bills  are  made  of  one 
piece  of  wood,  which  is  divided  into  two  parts,  one  for 
the  seller  and  the  other  for  the  buyer.  They  are  issued  by 
the  government,  in  charge  of  the  auditor  of  price,  for 
the  purpose  of  establishing  confidence  and  preventing  litiga- 
tion. When  the  transaction  involves  a  large  sum,  the  long 
bill  is  issued;  and,  when  it  is  small,  the  short  bill  is  issued. 
If  there  is  any  litigation  arising  from  the  bills,  and  also  from 
the  written  tally,^  it  is  heard  by  the  auditor  of  price.     From 

*  In  modern  time^,  this  policy  has  been  changed  to  the  opposite.  Dur- 
ing a  famine,  the  price  of  grain  is  raised  to  induce  merchants  to  bring 
in  more  grain. 

2  See  supra,  p.  432. 


COMMERCE 


449 


the  time  when  the  bill  or  the  tally  is  issued  to  the  time  when 
the  litigation  is  brought  to  the  court,  however,  there  are  dif- 
ferent limits  according  to  the  distance  of  the  complainant. 
If  he  lives  in  the  imperial  capital,  the  period  is  ten  days;  in  a 
suburb,  twenty  days;  in  the  country,  thirty  days;  in  the  sur- 
rounding cities,  three  months;  in  the  feudal  states,  one  year. 
Beyond  these  periods,  the  litigation  shall  not  be  heard. 

Sixth,  there  is  the  police  system.  The  gate  of  the  market 
is  guarded  by  policemen  who  hold  whips  and  halberds.  For 
every  two  shops,  there  is  a  policeman  {hsii)  to  keep  watch. 
For  every  ten  shops,  there  is  a  captain  {ssii  pao)  to  take 
charge  of  fighters,  noise-makers,  peace-disturbers,  offenders, 
and  persons  eating  and  drinking  in  parties.  For  every  five 
shops,  there  is  a  detective  {ssii  cJii).  His  functions  are  to 
find  out  the  transgressor,  to  watch  the  stranger,  to  take  note 
of  the  lounger  who  stops  longer  than  a  proper  length  of 
time,  and  to  capture  the  thief.  The  punishments  of  the 
offender  in  the  market  are  three — to  declare  his  '•ransgres- 
sion  by  written  notice,  to  set  forth  his  body  as  a  bad  ex- 
ample, and  to  whip  him  as  the  most  severe  punishment.  If 
it  belongs  to  the  criminal  law.  it  goes  to  the  court  of  justice. 

All  these  regulations  are  given  by  the  Official  Syston  of 
Chon}  Although  this  book  was  compiled  by  Liu  Hsin, 
these  regulations  were  the  actual  rules  under  the  Chou  dy- 
nasty. In  fact,  in  the  classical  time,  the  government  did  in- 
terfere with  the  commercial  life  very  minutely. 

VII.   INTERNATIONAL  TRADE 

Since  the  eighth  of  the  nine  standard  rules  is  "  the  indul- 
gent treatment  of  foreigners,"  ^  foreign  trade  occupies  a 
special  category  in  the  governmental  system  of  Confucius. 
The  practice  of  this  rule  is  "  to  escort  them  on  their  de- 

*  Chs.  xiv.  and  xv. 
-  See  sufira,  pp.  316-17. 


450        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

parture  and  meet  them  on  their  coming;  to  commend  the 
good  among  them,  and  show  compassion  to  the  incom- 
petent." Therefore,  according  to  the  principle  of  Confucius, 
a  state  should  not  only  open  the  door  to  foreigners  for 
foreign  trade,  but  should  also  gWe  them  special  favor  be- 
cause they  live  a  long  distance  away. 

The  principle  of  international  trade  is  based  upon  the 
geographical  differences  of  economic  condition.  The 
''  Royal  Regulations  "  says : 

The  people  of  the  Middle  Kingdom  and  those  of  the  tribes  of 
the  east,  the  south,  the  west,  and  the  north,  all  have  com- 
fortable dwellings,  delicious  flavors,  suitable  dresses,  useful 
implements,  and  finished  articles.  In  these  five  regions,  the 
languages  of  the  people  are  not  mutually  intelligible,  and  their 
tastes  and  desires  are  different.  To  express  their  thoughts 
and  to  exchange  their  wants,  there  are  the  officers  to  handle 
foreign  affairs:  For  the  east,  they  are  called  transmitters;  for 
the  south,  representatives;  for  the  west,  interpreters;  and  for 
the  north,  translators.^ 

According  to  this  statement,  the  chief  function  of  the 
officers  in  charge  of  foreign  affairs  is  to  promote  foreign 
trade.  Their  duty  is  to  interpret  foreign  languages  for 
the  expression  of  thoughts  and  the  exchange  of  wants  which 
are  in  the  minds  of  the  foreigners.  Since  the  people  of  the 
five  regions  all  have  comfortable  dwellings,  delicious  flavors, 
suitable  dresses,  useful  implements,  and  finished  articles, 
foreign  trade  is  simply  to  supply  the  reciprocal  demand  of 
each  other,  and  there  are  mutual  gains.  Moreover,  since 
their  tastes  and  desires  are  different,  foreign  trade  can  ex- 
change their  wants,  so  as  to  develop  the  different  tastes,  and 
to  make  use  of  anything  which  is  not  wanted  in  one  region 
but  demanded  in  another.     Therefore,  foreign  trade  is  nec- 

^  Li  Ki,  bk.  iii,  pp.  229-230, 


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451 


essary,  and  the  policy  of  "  the  c'osed  door  "  is  not  in  har- 
mony with  the  principle  of  Confucius. 

According  to  the  Official  System  of  Chou,  there  is  the 
commissioner  of  immigration  {hiiai  fang  sliih).  His  func- 
tion is  to  give  welcome  to  foreigners  from  all  directions. 
He  orders  his  subordinates  to  escort  them  on  their  departure 
and  to  meet  them  on  their  coming.  He  issues  passports  to 
them  for  their  traveling.  He  takes  care  of  their  provisions, 
hotel,  food  and  drink.  By  these  means,  he  causes  them  to 
send  their  tribute  and  goods  to  the  government.'  This  was 
the  characteristic  of  foreign  trade  in  the  ancient  times. 
Since  the  surrounding  tribes  were  all  inferior  to  the  Chinese 
themselves,  the  opening  of  trade  for  them  was  really  a  favor 
to  them.  Therefore,  when  they  came  to  China,  they  always 
brought  their  tribute  to  the  government  as  an  acknowl- 
edgment of  its  suzerainty ;  but  at  the  same  time,  they  im- 
ported their  goods  to  exchange  for  Chinese  goods.  In 
return  for  their  tribute,  moreover,  the  government  usually 
granted  articles  to  them  according  to  their  wants.  There- 
fore, it  was  really  a  foreign  trade  under  the  name  of  tribute; 
and  these  two  things,  tribute  and  trade,  were  connected  with 
each  other.  A  similar  process  continued  throughout  the 
whole  history  until  the  Opium  War  (2393,  or  1842  A.  D.). 
Since  that  time,  foreign  trade  marks  a  great  difference  be- 
tween the  ancients  and  the  moderns. 

What  we  have  discussed  above  is  the  trade  between  China 
and  the  subordinate  nations.  We  now  come  to  the  trade 
between  the  equal  nations  within  the  Chinese  world.  As 
China  was  a  great  empire,  and  was  divided  up  into  dif- 
ferent nations  during  the  later  part  of  the  Chou  dynasty.' 
the  trade  carried  on  among  them  was  really  an  international 
trade,  and  not  an  internal  trade.     Therefore,  international 

*  Ch.  xxxiii.  '^  See  suf>ra.  p.  I2Q. 


4^2        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

trade  became  a  very  important  problem.  According  to  Tso's 
Commentary,  Duke  Wen  of  Wei  (118-84  B.  K.  or  669-635 
B.  C.)  reorganized  his  ruined  state  by  the  promotion  of 
trade.  Hence,  the  term  '^  international  trade  "  has  come  to 
exist;  in  the  original  Chinese,  it  is  called  "communicating 
trade."  ' 

When  there  is  any  international  trade,  there  must  be  some 
sort  of  commercial  treaty.  If  we  want  to  trace  back  such 
treaties  in  the  ancient  times,  we  may  give  a  few  examples. 
In  100  B.  K.  (651  B.  C),  there  was  a  conference  held  in 
K'uei  Ch'iu  by  the  princes  of  seven  states.  One  item  of  the 
fifth  article  of  their  agreement  read :  ''  Impose  no  re- 
strictions on  the  sale  of  grain."  Since  grain  was  the  chief 
article  of  food,  they  made  it  the  object  of  free  exportation. 
When  Mencius  spoke  of  this  conference,  he  approved  their 
agreement.^ 

Eighteen  years  before  Confucius  (569  B.  C.)^  the  ad- 
vantages of  peaceful  intercourse  between  the  Chinese  and 
the  barbarian  tribes  were  pointed  out  by  Wei  Chiang,  a 
minister  of  Tsin.  He  enumerated  five  advantages  which 
came  from  the  peaceful  treaty  made  Vvith  the  barbarians. 
The  first  of  them  was  the  profit  of  exchange;  and  the  sec- 
ond, the  continuity  of  production.     He  said : 

The  barbarians  are  continually  changing  their  residence,  and 
are  fond  of  exchanging  land  for  goods.  Their  lands  can  be 
purchased — this  is  the  first  advantage.  Our  borders  will  not 
be  kept  in  apprehension.  The  people  can  labor  on  their  fields, 
and  the  farmers  complete  their  toils — this  is  the  second.^ 

Eleven  years  before  Confucius  (562  B.  C),  the  princes 
of  thirteen  states  made  a  covenant  together  in  Po.    The  first 

*  Classics,  vol.  v,  pt.  i,  p.  131. 
'  Ibid.,  vol.  ii,  pp.  437-8. 
'  I  hid.,  vol.  V.  pt.  ii.  p.  424. 


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453 


two  items  of  their  treaty  were:  **  All  we  who  covenant 
together  agree  not  to  hoard  up  the  produce  of  good  years, 
and  not  to  shut  one  another  out  from  advantages  we  pos- 
sess." ^  By  this  treaty,  the  first  item  referred  to  grain; 
and  the  second,  to  commodities  in  general  which  should 
come  either  from  the  natural  resources  of  certain  localities, 
or  from  the  superior  skill  of  certain  people.  It  was  a  treaty 
to  make  exportation  free. 

The  Confucian  theory  of  international  trade  is  an  extreme 
doctrine  of  free  trade.  According  to  Elder  Tai's  Record, 
Confucius  says:  "Formerly,  wise  kings  inspected  trav- 
elers at  the  custom-houses,  but  did  not  levy  duty  upon 
commodities."  ^  Such  a  statement  is  repeated  by  Mencius, 
Hsun  Tzu,  and  the  **  Royal  Regulations."  Mencius  men- 
tions this  doctrine  several  times;  and,  in  one  instance,  he 
says:  "If,  at  his  custom-houses,  there  be  an  iiispection  of 
persons,  but  no  taxes  charged  on  commodities,  then  all  the 
travelers  of  the  whole  world  will  be  pleased,  and  wish  to 
make  their  tours  on  his  roads."  ^  One  day  he  says:  "  An- 
ciently,the  establishment  of  the  custom-houses  vas  to  guard 
against  violence.  Nowadays,  it  is  to  exercise  violence."  * 
In  another  day  he  compares  it  with  the  thieving  of  fowls.* 
Indeed,  Mencius  condemns  custom  duties  as  unjust.  When 
Hsun  Tzu  describes  the  effect  of  free  trade,  he  says: 
"  Transport  the  money,  commodities  and  grain  without  any 
delay  anrl  stopping,  in  order  Lo  satisfy  the  reciprocal  de- 
mand: it  makes  the  whole  world  like  a  single  family."' 
Therefore,  according  to  the  Contucians,  international  trade 
should  be  absolutely  free.     Since  their  principle  is  cosmo- 

*  Classics,  vol.  v,  pt.  ii,  p.  453. 
'  Bk.  xxxix. 

•  Classics,  vol.  ii.  p.  200.  *  Ibid.,  p.  481. 
^Ibid..  p.  278.                                           Mlk.   ix. 


454        ^^^  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

politanism  and  their  object  is  to  equalize  the  whole  world,  it 
is  no  wonder  that  they  advocate  the  doctrine  of  free  trade 
in  its  extreme  form. 

Free  trade  was  only  a  theory  of  the  Confucians.  There 
were  custom  duties  under  the  Chou  dynasty.  According 
to  the  OMcial  System  of  Chou,  there  was  the  director  of 
custom-houses,  who  charged  duties  and  storage.  If  any 
commodity  was  smuggled,  it  should  be  confiscated,  and 
the  smuggler  should  be  punished.  It  was  only  during  a 
famine  or  a  great  mortality,  that  the  custom  duties  were 
suspended,  but  the  persons  were  still  under  inspection.^ 
From  this  example,  we  can  see  the  difference  between  the 
OfUcial  System  of  Chou  and  the  principles  of  the  Confu- 
cians. The  former  is  a  record  of  facts,  while  the  latter  are 
theories.  Sometimes  they  go  along  together,  and  sometimes 
they  do  not. 

VIII.  POSITION  OF  MERCHANTS 

During  the  Chou  dynasty,  the  position  of  merchants 
was  very  prominent.  They  were  mostly  individuals  for  the 
carrying  on  of  their  trade,  but  there  was  also  associated  and 
incorporated  enterprise.  The  best  example  of  the  partner- 
ship was  given  by  Kuan  Tzu  and  Pao  Shu  (before  the  date 
of  143  B.  K.  or  694  B.  C.).^  In  later  times  they  both  be- 
came famous  ministers  of  Ch'i.  Corporations  are  men- 
tioned in  the  Official  System  of  Chou.  It  says :  "  All  the 
people  who  own  commodities  and  money  in  common  are 
regulated  by  the  law  of  the  state;  and,  if  they  violate  the 
regulations,  they  shall  be  punished."  ^  Cheng  Chung  says 
that  these  people  are  those  who  form  joint  stock  companies. 

1  Ch.  XV. 

*  Historical  Record,  ch.  Ixii. 

*  Ch.  XXXV. 


COMMERCl 


455 


Therefore,  commercial  corporations  existed  in  the  Chou 
dynasty. 

There  is  another  proof  that  the  commercial  corporation 
or  trade  guild  existed  in  the  Chou  dynasty.  In  26  A.  K. 
(526  B.  C),  Tzu-ch'an,  the  prime  minister  of  Cheng  and  a 
good  friend  of  Confucius,  said : 

Our  former  ruler,  Duke  Huan,  came  with  the  former  mer- 
chants from  Chou  [222  B.  K.  or  773  B.  C.].  Thus  they  were 
associated  in  cultivating  the  land,  together  clearing  and  open- 
ing up  this  territory,  and  cutting  down  its  tangled  souther- 
wood  and  orach.  Then  they  dwelt  in  it  together.  In  every 
generation,  our  ruler  has  made  a  covenant  with  the  merchants 
for  the  mutual  faith.  It  reads :  "  You  will  not  revolt  from 
me,  and  I  will  not  violently  interfere  with  your  traffic.  I  will 
not  beg  or  take  anything  from  you.  You  may  have  your  pro- 
fitable markets,  precious  things,  and  substance,  without  my 
taking  any  knowledge  of  them."  Through  this  attested  cove- 
nant, our  rulers  and  the  merchants  have  preserved  their  mutual 
relations  down  to  the  present  day. 

By  this  statement  he  protected  a  merchant  from  being  com- 
pelled to  sell  a  ring  of  jade  to  the  prime  minister  of  Tsin,  a 
very  powerful  state. ^ 

From  these  facts,  we  can  see  that  the  power  of  the  mer- 
chants was  very  great.  They  helped  the  most  powerful 
duke,  uncle  of  the  emperor,  to  establish  a  new  state,  and 
made  a  covenant  with  the  princes  in  every  generation. 
This  shows  the  democratic  movement,  commercial  free- 
dom, and  contractual  society.  From  the  time  when  Duke 
Huan  moved  his  state  to  the  time  when  Tzu-ch*an  gave  this 
statement,  there  was  a  period  of  248  years,  and  the  state 
(lid  not  violate  the  covenant.  Such  a  thing  never  could  be 
done  by  the  individual  merchants,  and  they  must  have  in- 

*  Classics,  vol.  v,  pt.  ii,  p.  664. 


456        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

corporated  themselves  into  a  legal  body.  Hence,  their  cor- 
poration had  a  perpetual  life  for  the  making  and  preserving 
of  the  covenant  with  the  state,  from  generation  to  genera- 
tion. In  order  to  guard  this  covenant,  the  statesman  of  the 
weak  state  even  dared  to  refuse  the  demand  for  a  ring  raised 
by  the  envoy  of  the  chief  power.  It  proves  that  the  internal 
contract  between  the  state  and  the  corporation  was  stronger 
even  than  the  international  relation.  In  fact,  Cheng  was  a 
commercial  state,  and  the  corporation  had  a  strong  hold 
there. 

Understanding  that  commercial  corporations  existed  in 
the  time  of  Confucius,  we  now  come  to  consider  the  posi- 
tion of  the  individual  merchants.  For  this  purpose,  we  may 
mention  a  few  of  the  most  prominent  merchants  as  ex- 
amples. 

In  76  B.  K.  (627  B.  C. ),  when  the  army  of  Ch*in  was 
going  to  invade  Cheng,  Hsien  Kao,  a  merchant  of  Cheng, 
on  his  business  journey,  met  it.  Pretending  that  he  was  sent 
by  his  prince,  he  went  with  four  dressed  hides,  preceding 
twelve  oxen,  to  distribute  them  among  the  soldiers,  and  to 
delay  the  generals  with  compliments.  A_t  the  same  time,  he 
sent  intelligence  of  what  was  taking  place  with  all  possible 
speed  to  Cheng.  Therefore,  Cheng  was  saved.'  This  was 
a  case  where  a  merchant  saved  the  country. 

The  chief  figure  in  the  *'  Biography  of  Merchants  "  in 
the  Historical  Record  ^  is  Tzu-kung.  He  was  a  pupil  of  Con- 
fucius, but  he  was  also  a  merchant.  He  used  his  capital  for 
speculative  purposes,  and  sold  his  money.  He  made  a  great 
profit.  Among  all  the  pupils  of  Confucius,  he  was  the  rich- 
est one.  Whenever  he  visited  any  prince,  he  was  received 
and  treated  as  if  he  were  of  the  same  rank  with  the  prince. 

^  Classics,  vol.  v,  pt.  i,  p.  224. 
2  Historical  Record,  ch.  cxxix. 


COMMERCE 


457 


Therefore,  the  reputation  even  of  Confucius  was  partly  due 
to  the  effort  of  Tzu-kung. 

A  little  later  than  Tzu-kung  was  Fan  Li.  He  was  the 
prime  minister  of  Yiieh,  and  he  became  a  merchant  after  his 
political  success  (79  A.  K.  or  473  B.  C).  He  took  his 
economic  theory  from  his  teacher,  and  it  is  worth  mention- 
ing.    Chi  Jan,  his  teacher,  says : 

For  skilful  competition,  one  should  make  a  preparation  of 
supply;  and  for  seasonal  consumption,  one  should  know  the 
things  demanded.  When  these  two  points  appear,  the  situa- 
tion of  all  commodities  can  be  seen.  .  .  .  When  there  is  a 
drought,  one  should  store  up  the  boats ;  and  when  there  is  a 
flood,  one  should  store  up  the  cars.  .  .  } 

To  keep  the  price  of  grain  on  a  level,  to  put  all  commodities 
in  the  normal  condition,  and  to  make  the  custom-houses  and 
the  markets  go  on  naturally  without  any  interruption,  all 
these  are  the  principles  of  a  good  government. 

The  laws  of  accumulating  capital  are :  One  must  keep  all  the 
capital  goods  intact.  One  must  not  allow'  money  to  be  idle. 
An  exchange  is  between  commodity  and  commodity.  The  in- 
struments which  have  worn  (jut  and  cannot  produce  any  thing 
should  not  remain. 

Do  not  dare  to  keep  goods  when  their  price  is  hi^h.  By 
studying  the  amount  of  goods  either  over-supplied  or  under- 
supplied,  that  their  price  will  either  rise  or  fall  can  be  know^n 
beforehand.  When  the  hi.ejh  price  rises  lO  the  extreme,  it  will 
turn  down;  and  whtn  the  low  price  falls  to  the  extreme,  it  will 
go  up.  At  its  highest  price,  the  commodity  should  be  got  rid 
of  as  manure  and  clay;  and  at  its  lowest  price,  it  should  be 
taken  as  pearl  and  jade.  All  kinds  of  wealth  and  specially 
money  should  flow  like  the  current  water. 

•  This  is  tlic  princii)lc  of  accumulating  a  thing  when  it  has  no  use, 
and  waiting  for  the  time  when  there  is  a  demand  for  it.  Since  there 
can  be  neither  a  constant  drought  nor  a  constant  flood,  this  policy 
usually  leads  to  a  great  profit. 


458        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

These  are  the  economic  principles  of  Chi  Jan.  After 
Fan  Li  had  successfully  applied  these  principles  to  the 
state,  he  wanted  to  apply  them  to  his  family;  hence,  he 
became  a  rich  merchant.  His  methods  were  to  select  the 
right  men,  and  to  seize  the  right  times.  In  fact,  it  was 
speculative.  In  a  period  of  nineteen  )^ears,  he  accumulated 
wealth  three  times,  and  he  distributed  it  to  the  poor  twice. 
The  amount  of  his  wealth  was  over  one  hundred  millions; 
hence,  he  distinguished  himself  by  his  wealth. 

About  the  time  of  Mencius,  there  was  Pai  Kuei.^  He 
was  called  the  father  of  economics,  but  he  looked  upon  eco- 
nomics as  an  art  rather  than  as  a  science.  He  was  mostly 
pleased  to  speculate  upon  the  changes  of  times.  His  policy 
was :  "  Take  what  others  throw  away,  and  give  away  what 
others  take."  He  was  able  to  lessen  food  and  drink,  to  re- 
strain the  passions  and  desires,  to  simplify  dress,  and  to 
share  both  hardship  and  pleasure  with  his  working  servants 
But  when  he  was  going  to  seize  the  right  times,  it  was  like 
the  start  of  the  cruel  beast  and  the  terrible  bird.  Therefore, 
he  compared  his  economic  principles  with  the  politics  of  the 
greatest  statesmen,  the  strategy  of  the  founders  of  the  mili- 
tary school,  and  the  laws  of  the  founder  of  the  law  school. 
He  said : 

If  either  his  wisdom  cannot  see  the  changes  of  a  thing,  or  his 
bravery  cannot  make  out  a  decision,  or  his  kindness  is  not 
enough  for  the  giving  of  some  thing,  or  liis  firmness  is  not 
strong  enough  to  hold  the  principle,  I  shall  never  tell  him 
about  my  methods,  even  though  he  may  want  to  learn  them 
from  me. 

Therefore,  we  are  told  by  Ssu-ma  Chien  that  the  economists 
of  the  Chinese  world  recognized  Pai  Kuei  as  the  father  of 

^  He  was  accordingly  a  Confucian. 


COMMERCE 


459 


economics.  He  says :  "  Indeed,  Pai  Kuei  had  proved  his 
good  practice.  He  possessed  special  genius,  and  his  practical 
success  was  not  by  chance."  ^ 

^  Tzu-kung  had  become  minister  in  the  states  of  Lu  and  Wei  after 
his  commercial  enterprise.  Fan  Li  had  become  the  minister  of  Yiieh 
before  his  commercial  enterprise,  and  became  also  the  minister  of  Ch'i 
afterward.  Pai  Kuei  was  a  commander  of  Marquis  Wen  of  Wei,  and 
conquered  the  state  named  Chungshan  in  144  A.  K.  (408  B  C.)  ;  but 
he  was  also  a  merchant.  They  were  the  representatives  of  the  promi- 
nent merchants  of  that  time.  In  fact,  these  three  men  were  really 
the  founders  of  the  commercial  school. 

During  the  Ch'in  dynasty,  the  position  of  merchants  was  also  very 
prominent.  Lii  Pu-wei.  a  great  merchant,  gained  the  state  of  Ch'in, 
and  became  the  true  father  of  the  First  Emperor  (292  A.  K.  or  260 
B.  C).  Historical  Record,  ch.  Ixxxv.  The  First  Emperor  (306-342 
A.  K.  or  246-210  B.  C.)  made  a  shepherd  named  Lo  equal  to  the  feudal 
prince;  and  he  treated  a  widow  named  Ts'ing  as  a  guest,  and  built  a 
tower  for  her.  T'ley  were  both  distinguished  by  their  wealth.  Ibid., 
ch.  cxxix.  These  illustrations  prove  that  the  position  of  the  merchants 
was  very  honorable  and  powerful. 


BOOK  VII.     DISTRIBUTION 


CHAPTER  XXIV 

General  Principles  of  Distribution  :  Rent,  Interest 

AND  Profits 

I.  GENERAL  PRINCIPLES  OF  DISTRIBUTION 

In  the  economic  theories  of  the  Confucians,  more  im- 
portance is  attached  to  the  problems  of  distribution  than  to 
those  of  production,  because  the  Confucians  are  more  social- 
istic than  individuaHstic.  There  are  many  principles  in  re- 
gard to  the  distribution  of  wealth,  but  we  may  classify 
them  under  three  heads,  namely,  equality,  productivity,  and 
need. 

I.  Distribution  According  to  the  Principle  of  Equality 
First,  wealth  should  be  distributed  equally.  By  an  equal 
distribution,  it  is  not  meant  that  everyone  should  have  the 
same  amount  of  income,  but  that  everyone  should  have  the 
same  opportunity  from  which  he  will  be  enabled  to  get  the 
same  amount  of  income.  Therefore,  ihere  is  the  minority 
of  men  who  receive  justly  an  unequal  amount  of  wealth  on 
account  of  their  ability  and  service.  But,  as  soon  as  the 
majority  of  men  can  have  equal  opportunity  of  production, 
and  can  live  at  the  social  standard  without  the  suffering  of 
poverty,  it  is  an  equal  distribution.  In  fact,  there  never  can 
be  an  absolute  equality,  but  only  a  proximate  equality. 
Hsun  Tzu  says: 

Now,  to  be  as  dignified  as  an  emperor,  and  as  rich  as  pos- 
sessing the  whole  empire,  are  objects  for  which  all  men,  ac- 
460 


GENEKAL  PRINCIPLES  OF  DISTRIBUTION  461 

cording  to  human  nature,  have  a  common  desire.  But  if  we 
indulge  the  desires  of  men,  there  is  no  room  for  so  many 
desires,  and  there  is  no  sufficiency  of  things  to  satisfy  them. 
The  ancient  kings  accordingly  established  rites  and  justice 
for  men  in  order  to  distribute  wealth.  They  distinguished 
the  classes  between  the  honorable  and  the  mean,  the  differ- 
ence between  the  old  and  the  young,  and  the  separation  be- 
tween the  wise  and  the  ignorant,  and  between  the  able  and  the 
incapable.  They  made  all  men  take  up  their  work  and  get 
their  justice  respectively.  Then,  the  different  amounts  of 
income  either  great  or  small,  were  all  made  suitable  to  every- 
one. This  is  the  principle  of  harmony  and  unity  of  a  society. 
Therefore,  when  the  benevolent  man  is  on  the  throne,  the 
farmers  will  give  all  their  strength  to  the  farms ;  the  mer- 
chants, their  sagacity  to  wealth;  the  artisans,  their  skill  to  the 
articles ;  and  all  the  officials,  from  the  students  up  to  the 
dukes,  their  virtue  and  abilities  to  their  official  duties.  This 
is  what  is  called  perfect  equality.  Therefore,  some  receive 
income  from  the  whole  empire,  [as  an  emperor],  but  they  do 
not  think  that  it  is  too  much  ;  and  some  receive  it  as  a  door- 
keeper, or  a  waiter  on  a  traveller,  or  a  guard  along  the  gate, 
or  a  watchman,  but  they  do  not  think  that  it  is  too  little. 
It  is  said :  "Although  it  looks  unequal,  it  is  equal ;  although  it 
looks  partial,  it  is  just;  although  it  looks  different,  it  is  uni- 
form."    This  is  what  are  called  social  relations.^ 

According  to  the  social  principles  of  Confucius,  there  are 
two  divisions  of  men.  The  one  in  in  the  honorable  position, 
such  as  the  emperor,  the  princes,  the  great  officials,  and  the 
students,  while  the  other  is  in  the  mean  position,  the  com- 
mon people.  The  class  of  honorable  men  should  be  rich, 
and  the  class  of  common  people  poor.  Hence,  the  word 
rich  comes  together  with  the  word  honorable,  and  the  word 
poor  with  the  word  mean.     But  there  is  nothing  to  confine 

1  Bk.  iv. 


^52        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

anyone  to  either  class,  and  he  will  either  rise  or  fall  ac- 
cording to  his  own  ability.  Among  the  five  classes  of  men — 
the  emperor,  the  princes,  the  great  officials,  the  students 
and  the  common  people — there  is  no  equality  of  wealth. 
But  among  the  common  people  themselves,  the  greatest 
number  of  men,  wealth  must  be  equally  distributed.  On  the 
one  hand,  no  one  of  them  is  enabled  to  get  any  special  ad- 
vantage over  his  fellow-members  for  the  increasing  of  his 
income;  and  on  the  other,  the  upper  classes  are  not  allowed 
to  take  up  any  gainful  occupation  for  competition  with  the 
common  people.  This  is  what  Confucius  means  by  an  equal 
distribution. 

We  must  understand  that^  according  to  the  principles  of 
Confucius,  the  two  classes,  rich  and  poor,  should  not  be 
widely  separated.  They  are  simply  comparatively  rich  and 
poor,  but  they  should  not  have  too  much  difference.  Dur- 
ing the  Chou  dynasty,  there  was  a  class  struggle,  and  it  is 
shown  in  the  Canon  of  Poetry.    It  says : 

They  have  their  good  spirits,  ^ 

And  their  fine  viands  along  with  them. 

They  assemble  their  neighbors, 

And  their  relatives  are  full  of  their  praise. 

When  I  think  of  my  loneliness, 

My  sorrowing  heart  is  full  of  distress. 

The  first  four  lines  describe  the  wealth  and  jollity  of  the 
unworthy  favorites  of  the  court;  the  last  two,  the  writer's 
distress  in  thinking  of  the  existing  disorder,  and  the  coming 
ruin.    It  continues: 

Mean-like,  those  have  their  houses ; 

Abject,  they  have  their  salary. 

But  the  people  now  have  no  maintenance. 

For  Heaven  is  pounding  them  with  its  calamities. 

Those  rich  enjoy  themselves; 

But  alas  for  the  helpless-  and  solitary!^ 

*  Classics,  vol.  iv,  pt.  ii,  pp.  319-320. 


GENERAL  PRISCIPLES  01    DISTRIBUTION  463 

This  poem  was  written  during  the  reign  of  Yu  Wang 
(230-220  B.  K.  or  781-771  B.  C),  who  ruined  the  Western 
Chou  dynasty ;  and  it  shows  that  there  was  a  great  gap  be- 
tween the  rich  and  the  poor.  Such  an  unequal  distribution 
is  the  sign  of  ruin,  and  Confucius  takes  it  as  a  warning  for 
future  generations.  Therefore,  the  Canon  of  History  says: 
'*  The  former  rulers.  Wen  and  Wu,  greatly  equalized  the 
wealth  of  the  people."  ' 

The  reason  why  Confucius  advocates  equal  distribution 
of  wealth  is  from  the  psychological  point  of  view.  Accord- 
ing to  human  nature,  those  who  have  too  much  of  wealth 
are  just  as  badly  off  as  those  who  have  too  little  of  it.  Con- 
fucius says: 

The  small  man,  when  poor,  feels  the  pinch  of  his  straitene-i 
circumstances ;  and  when  rich,  is  liable  to  become  proud.  Un- 
der the  pinch  of  that  poverty,  he  may  proceed  to  steal ;  and 
when  proud,  he  may  proceed  to  deeds  of  disorder.  The  so- 
cial rules  recognize  these  feelings  of  men,  and  lay  down  de- 
finite regulations  for  them,  to  serve  as  preventions  for  the 
people.  Hence,  when  the  sages  distributed  riches  and  honors, 
they  made  the  rich  not  have  power  enough  to  be  proud ;  and 
kept  the  poor  from  being  pinched  ;  and  the  honorable  men  not 
be  intractable  to  those  above  them.  In  this  way  the  causes 
of  disorder  would  more  and  more  disappear.^ 

Therefore,  an  equal  distribution  is  to  keep  both  the  rich 
and  the  poor  in  good  nature,  and  to  preserve  social  peace. 
Tn  short,  Confucius  means  that  the  government  is  the  dis- 
tributor of  wealth,  and  the  controller  of  production  and  con- 
sumption. 

In  the  book  **  Equalization  "  of  the  Many  Dcivdrops  of 
the  Spring  and  Autunin,  Tung  Chung-shu  says: 

^  Classics,  vol.  iii.  pt.  ii.  p.  566. 
'  Li  Ki.  bk.  xxvii.  pp.  284-5. 


464        T^^  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

It  is  said  by  Confucius,  ''  We  are  not  troubled  with  fears  of 
poverty,  but  are  troubled  with  fears  of  a  lack  of  equality  of 
wealth."  Therefore,  when  there  is  here  a  concentration  of 
wealth,  there  must  be  an  emptiness  there.  Great  riches  make 
the  people  proud ;  and  great  poverty  makes  them  wretched. 
When  they  are  wretched,  they  would  become  robbers ;  when 
they  are  proud,  they  would  become  oppressors ;  it  is  human 
nature.  From  the  nature  of  the  average  man,  the  sages  dis- 
covered the  origin  of  disorder.  Therefore,  when  they  estab- 
lished social  laws  and  divided  up  the  social  orders,  they 
made  the  rich  able  to  show  their  distinction  without  being 
proud,  and  the  poor  able  to  make  their  living  without  misery; 
this  was  the  standard  for  the  equalization  of  society.  In  this 
way,  wealth  was  sufficient,  and  the  high  and  low  classes 
were  peaceful.  Hence,  society  was  easily  governed  well. 
In  the  present  day,  the  regulations  are  abandoned,  so  that 
everyone  pursues  what  he  wants.  As  human  wants  have  no 
limit,  the  whole  society  becomes  indulgent  without  end. 
The  great  men  of  the  high  class,  notwithstanding  they  have 
great  fortune,  feel  bad  for  the  insufficiency  of  their  wealth ; 
while  the  small  people  of  the  low  class  are  depressed.  There- 
fore, the  rich  increase  their  avarice  for  money,  and  do  not 
wish  to  do  good ;  while  the  poor  violate  the  laws  every  day, 
and  no  way  can  stop  them.  Hence,  society  is  difficult  to  gov- 
ern well.^ 

This  is  an  explanation  of  the  principle  of  Confucius. 

Equality  is  a  great  principle  of  Confucius,  and  it  has  also 
its  world  aspect.  Therefore,  he  advocates  it  from  the  inter- 
national point  of  view.  In  the  "  Great  Learning,"  the  last 
and  longest  chapter  is  entitled,  *'  The  Equalization  of  the 
Whole  World,"  in  which  the  most  important  subject  is  ad- 
ministering wealth.^  In  the  "  Doctrine  of  the  Mean,"  Con- 
fucius says :  "  The  world,  the  stntes,  and  the  families,  may 

*  Bk.  xxvii.  2  5ge  supra,  p.  140. 


GENERAL  PRINCIPLES  OF  DISTRIBUTION  465 

be  equalized."  ^  Therefore,  Confucius  plans  an  equal  dis- 
tribution applied  to  the  world  as  a  whole. 

During  the  time  of  Confucius,  the  princes  of  states  and 
the  chiefs  of  noble  families  made  war  against  each  other  in 
order  to  extend  their  territory  and  to  increase  their  people, 
because  they  thought  that  having  more  land  and  more  popu- 
lation would  make  them  richer.  But  the  people  not  only 
had  no  interest  in  these  wars,  but  also  sacrificed  their  lives 
and  property  in  them.  Therefore,  when  the  head  of  the  Chi 
family  was  going  to  attack  Chuan-yu,  a  dependent  state  of 
Lu,  Confucius  gave  the  great  principle  of  equality.    He  said : 

I  have  heard  that  rulers  of  states  and  chiefs  of  families  are 
not  troubled  lest  their  people  should  be  few,  but  are  troubled 
lest  they  should  not  have  equality  of  wealth ;  that  they  are 
not   troubled   with    fears   of   poverty,   but   are   troubled   with 
fears  of  a  lack  of  peace  among  the  people  themselves.     For, 
^vvhen   the   people   liave   equality   of   wealth,   there  will  be   no      ^^ 
)0vcrty;  when  harmony  prevails,  there  will  be  no  scarcityof       ^►-m- 
people -'and  when  there  is  social  peace  among  the  people,  there      wo^r^ 
will  be  no  fall  of  state  or  family.J^  # 

These  three  characteristics,  equality,  harmony  and  peace,     ^«'vv 
are  the  aims  of  the  economic  theories  of  Confucius.     But     g^**^. 
harmony  and  peace  are  the  results  of  equality.     Therefore, 
equality  of  wealth  is  the  fundamental  thing. 

2.  Distribution  According  to  Productivity 

Second,  distribution  should  be  according  to  productivity. 
Confucius  says: 

The  ceremony  takes  place  before  the  silks  offered  in  con- 
nection with  it  arc  presented: — this  is  intended  to  teach  the 
people  to  make  the  doing  of  their  duties  the  first  thing,  and 

'  Classics,  vol.  i,  p.  389.  '  Ibid.,  p.  308. 


466        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

their  salaries  an  after  consideration.  ...  It  is  said  in  the 
Canon  of  Changes,  "  He  reaps  without  having  ploughed  that 
he  may  reap;  he  gathers  the  produce  of  the  third  year's  field 
without  having  cultivated  it  the  first  year ;  it  is  an  evil."  ^ 

Therefore,  Confucius  makes  a  rule  for  the  Confucians : 
''  They  must  first  do  the  work,  and  then  take  the  pay."  ^ 
Hence,  according  to  the  principles  of  Confucius,  distribu- 
tion must  be  in  accordance  with  the  product.  Even  though 
it  is  difficult  to  find  out  the  exact  amount  of  productivity, 
this  principle  is  a  just  one.  The  further  discussion  of  it  we 
shall  defer  till  we  take  up  the  problem  of  wages. 

3.  Distribution  According  to  Need 

Third,  distribution  should  be  according  to  need.  This  is 
a  very  important  principle  in  the  Spring  and  Autumn.  In 
the  first  year  of  Duke  Yin  of  Lu,  it  records :  "  The  emperor 
sent  the  sub-administrator  Hsiian  to  return  a  present  of  two 
carriages  and  eight  horses  for  the  funerals  of  Duke  Hui 
and  his  wife  Chung-tzu."  Now,  as  this  present  was  not 
the  old  property  of  Lu,  and  just  given  by  the  emperor,  why 
should  Confucius  use  the  word  "  return  "  ?  It  is  because 
he  wants  to  indicate  that  the  receiver,  Duke  Yin,  should 
have  a  common  ownership  in  those  things  with  the  Emperor. 
Ho  Hsiu  explains  this  principle  as  follows :  "  Wealth  is  pro- 
duced by  the  power  of  Heaven  and  Earth,  and  it  is  not  a 
possession  of  any  single  family.  Therefore,  those  who  have 
much  wealth  and  those  who  have  nothing  should  share  it 
for  their  common  interest."  This  is  like  the  communistic 
idea.  But  we  must  understand  it  more  clearly.  Confucius 
recognizes  the  private  ownership  of  wealth,  but  he  denies 
that  the  owner  has  an  absolute  right  to  it.     Therefore,  he 

^  Li  Ki,  bk.  xxvii,  pp.  295-6. 
^  Ibid.,  bk.  xxxviii,  p.  404. 


GENERAL  PRIXCIPLES  OF  DISTRIBUTION  467 

makes  society  the  supreme  owner  of  everything,  and  the 
temporary  possessor  only  a  trustee.  Since  nature  is  a  co- 
operator  in  production,  no  one  can  claim  the  absolute  owner- 
ship of  anything  upon  the  occupation  theory  or  the  labor 
theory.  Hence,  distribution  of  wealth  should  be  according 
to  the  needs  of  the  members  of  society.  In  short,  those  who 
have  much  wealth  should  have  the  duty  of  giving,  and  those 
who  have  nothing  should  have  tne  right  of  receiving.  This 
is  the  principle  of  the  Spring  and  Autumn,  and  it  is  illus- 
trated by  this  case  which  does  not  mean  that  Duke  Yin  had 
no  wealth. 

In  the  Analtxts,  Confucius  says :  *'  I  have  heard  that  a 
superior  man  helps  the  distressed,  but  does  not  add  to  the 
wealth  of  the  rich."  '  This  is  his  general  principle  of  dis- 
tribution. 

The  reason  why  distribution  of  wealth  should  be  accord- 
ing to  need  is  explained  very  clearly  by  Mencius.  When  he 
sj^eaks  to  King  Hsiian  of  Ch'i,  he  says: 

ft  is  only  good  scholars,  who,  without  a  permanent  property, 
are  able  to  maintain  a  permanent  heart.  As  to  the  common 
people,  if  they  have  not  a  permanent  property,  it  follows  that 
they  will  not  have  a  permanent  heart.  And  if  they  have  not 
a  permanent  heart,  there  is  nothing  which  they  will  not  do,  in 
the  way  of  self-abandonment,  of  moral  deflection,  of  depravity, 
and  of  wild  license.  When  they  thus  have  been  involved  in 
crime,  to  follow  them  up  and  punish  them  is  to  entrap  the 
])eople.  How  can  such  a  thing  as  entrapping  the  people  be 
done  under  the  government  of  a  benevolent  man? 

Therefore,  a  wise  ruler  will  regulate  the  property  of  tb.e 
people,  so  as  to  make  sure  that,  for  those  above  them,  they 
shall  have  sufficient  wherewith  to  serve  their  parents,  and,  for 
those  below  them,  sufficient  wherewith  to  support  their  wives 
anfl  children  ;  that  in  good  years  they  shall  always  be  abund- 

'  Classics,  vol.  i,  p.  186. 


^68        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

antly  satisfied,  and  that  in  bad  years  they  shall  escape  the 
danger  of  perishing.  After  this  he  may  urge  them,  and  they 
will  proceed  to  what  is  good,  for  in  this  case  the  people  will 
follow  after  it  with  ease. 

Now,  the  property  of  the  people  is  so  regulated,  that,  above, 
they  have  not  sufficient  wherewith  to  serve  their  parents, 
and,  below,  they  have  not  sufficient  wherewith  to  support  their 
wives  and  children.  Notwithstanding  good  years,  their  lives 
are  continually  embittered,  and,  in  bad  years,  they  do  not 
escape  perishing.  In  such  circumstances,  they  only  try  to 
save  themselves  from  death,  and  are  even  afraid  they  will  not 
succeed.  What  leisure  have  they  to  cultivate  propriety  and 
righteousness  ?  ^ 

What  Mencius  means  by  '*  permanent  property  "  is  ex- 
plained in  the  ising  tien  system.  After  he  has  given  this 
advice  to  the  king,  he  immediately  describes  such  a  system 
in  short  outline.  Indeed,  what  is  necessary  to  make  a  man 
a  good  citizen  is  the  basis  of  distributive  justice.  If  his 
physical  needs  are  not  satisfied,  with  very  few  exceptions, 
no  one  can  fully  develop  his  intellectual  and  moral  powers.^ 


^^ 


II.    RENT 

I.  Absence  of  Land- ownership 
The  Spring  and  Autumn  does  not  allow  the  princes  to 
confer  feudal  estates  on  anyone  at  their  pleasure,  nor  the 


^  Classics,  vol.  ii,  pp.  147-8. 

'  Prof.  James  Legge  remarks :  "  His  principle  that  good  government 
should  contemplate  and  will  be  seen  in.  the  material  well-being  of  the 
people,  is  worthy  of  all  honor.  ,  .  .  When  Mencius  teaches  that  with 
the  mass  of  men  education  will  have  little  success  where  life  is 
embittered  by  miserable  poverty,  he  shows  himself  well  acquainted 
with  human  nature.  Educationists  now  seem  generally  to  recognize 
It,  but  I  think  it  is  only  within  a  century  that  it  has  assumed  in  Europe 
the  definiteness  and  importance  with  which  it  appeared  to  Mencius 
here  in  China  two  thousand  years  ago."  Chinese  Classics,  vol.  ii,  pp. 
49-50.     Prof.  Legge  published  his  translation  in  1894  A.  D. 


GENERAL  PRINCIPLES  OF  DISTRIBUTION 


469 


great  officials  to  win  the  land  exclusively.     ,This  principle 
means  that  none  can  be  the  true  landlord  except  the  em- 
peror.    The  Canon  of  Poetry  says :  ''Under  the  wide  heaven,  -^4  ^i 
all  is  the  kins^'s  land."  ^       In  ancient  times,  the  kino^  or  em- 


> 


peror  represented  the  sovereign  power  of  the  wdiole  empire; 
hence,  when  anything  belonged  to  the  state,  it  belonged  to 
the  king  or  emperor.  Therefore,  according  to  the  prin- 
ciples of  Confucius,  none  should  own  the  land  except  the 
state.  Even  the  princes  and  the  great  officials  have  no  right 
to  take  the  land  under  their  sway ;  how  can  the  cornmon 
people  have  any  claim  to  its  private  ownership?     We  are^ 


sure  that  Confucius  does  not  allow  land  to  be  subject  to 
prTvale^^ownefsTiip;  hence,  the  torm  of  rentdoes  not  exist^       'll^ 
in  his  system.^  ^ 

It  should  be  noted  that  Confucius  would  justify  the  tak-  — 

ing  of  rent,  if  the  land  had  been  the  private  property  of  its  V  -x 
owner  for  a  long  time.  Land  is  only  one  kind  of  capitak^^^*^' 
goods;  and,  since  Confucius  does  not  condemn  the  taking 
of  interest  by  the  capitalist,  he  must  not  condemn  the  taking 
of  rent  by  the  landowner.  Judging  from  his  idea,  if  the 
land  had  not  been  private  property,  he  would  not  let  it  go 
to  private  hands:  but,  if  it  had  been  so,  he  would  not  deny 
the  owner  the  right  of  taking  it?  rent. 

2.  The  Land  Tax  the  Equkvlcnt  of  Rent 
Confucius  and  his  disciples  give  no  theory  about  the  rent 
of  land,  because  in  their  day  the  land  was  under  public 
ownership.  The  essentials  of  their  principles,  however,  can 
be  applied  to  the  problem  of  rent.  Since  the  government 
was  the  land  owner,  and  the  people  paid  the  land  tax  to  it. 
the  land  tax  really  took  the  place  of  rent.  Although  the 
term  land  tax  is  rhfTerent  from  the  term  rent  in  modern 
times,  they  were  not  different  in  ancient  times.     Therefore. 

'  Class'us.  vol.  iv,  pt.  ii.  p.  360. 


470 


THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 


even  in  the  Han  and  the  Tang  djmasties,  the  word  rent  was 
used  in  the  sense  of  tax;  and  even  in  the  present  day,  there 
is  the  so-called  government  rent  which  goes  to  the  govern- 
ment for  the  use  of  public  land.  Hence,  the  principles  of 
the  land  tax  given  by  the  Confucians  are  also  the  principles 
of  rent. 

3.  Amount  of  Rent 

According  to  the  theory  of  the  Confucians,  the  amount  of 
rent  should  be  one-tenth  of  the  total  produce  of  the  land. 
This  is  the  moderate  rate  of  land  tax ;  hence,  it  is  also  that 
of  rent.  There  is  also  no-tax  land,  equivalent  to  no-rent 
land. 

According  to  the  historical  facts,  the  earliest  custom  of 
paying  rent  was  the  metayer  system.  The  cultivator  re- 
tained one-half  of  the  harvest,  and  paid  the  other  half  to  the 
landowner  as  rent.  This  was  strongly  condemned  by  the 
Confucians.  But  such  a  practice  has  existed  from  the  Ch'in 
dynasty  ^  to  the  present  day. 

During  the  Wei  and  the  Tsin  dynasties^  when  people 
took  land  and  oxen  from  the  government  for  cultivation, 
the  government  got  six-tenths  of  the  harvest  as  rent,  and 
the  people  got  four-tenths.  If  the  cultivators  supplied  pri- 
vate oxen  and  cultivated  government  land,  they  conformed 
to  the  metayer  system. 

In  1077  A.  K.  (526  A.  D.),  the  Northern  Wei  dynasty 
regulated  the  land  tax  as  five  pints  of  rice  for  each  acre. 
If  the  cultivator  was  a  tenant  of  government  land,  each 
acre  paid  one  peck  of  rice.  Therefore,  the  amount  of  rent 
was  equal  to  that  of  tax,  five  pints.^ 

The  Kin  dynasty  obtained  a  great  amount  of  rent  from 

'  History  of  Han,  ch.  xxiv. 
'  General  Research,  ch.  ii. 


GENERAL  PRINCIPLES  OF  DISTRIBUTION 


471 


the  government  land.  In  the  year  1752  A.  K.  ( 1201  A.  D.), 
the  average  of  rent  was  five  pecks  of  rice  for  each  acre,  in- 
cluding the  land  tax.  At  that  time  the  tax  on  private  land 
was  only  five  and  three-tenths  pints  of  rice  and  fifteen  catties 
of  straw  for  each  acre.' 

In  2304  A.  K.  ( 1753  A.  D.),  the  average  rent  of  the  gov- 
ernment land  for  the  support  of  public  schools  was  about 
.0165  tael  of  silver  for  each  acre,  without  paying  land  tax." 

In  fact,  the  government  rent  is  a  form  of  land  tax,  and 
it  is  much  lower  than  the  private  rent.  The  people  can 
never  pay  as  high  rent  to  the  government  as  to  private  land- 
owners, because  of  the  added  cost  of  paying  government 
rent,  due  to  the  cost  of  transportation  and  the  corruption  of 
the  official  administration.  Therefore,  the  Sung  and  the 
Ming  dynasties  did  great  harm  to  the  people,  because  they 
made  the  government  rent  equal  to  the  private  rent. 

It  is  difficult  to  find  the  rate  of  rent  paid  to  the  private 
landowner  outside  the  metayer  system,  but  there  are  some 
statements.  In  1345  A.  K.  (794  A.  D.),  Lu  Chih,  a  great 
statesman,  said : 

Now,  the  government  taxes  each  acre  of  land  at  the  rate  of 
five  pints  of  rice.  But  the  private  families  receive  the  rent 
at  one  bushel,  which  is  twenty  times  the  land  tax.  Even  of  the 
middle  grade  of  land,  its  rent  is  still  half  this  amount.  The 
land  is  the  possession  of  the  emperor,  and  the  agricultural 
works  are  the  labor  of  the  farmer;^ :  but  the  monopolistic 
capitalists  get  the  benefits. 

The  break-up  of  the  system  of  land  distribution  occurred  not 
long  before  his  time:  ^  hence,  Lu  Chih  did  not  recognize  the 

'  Continuation  of  the  General  Research,  ch.  i. 
'  General  Research  of  the  Present  Dynasty,  ch.  i. 
^  See  infra,  p.  520. 


472 


THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 


right  of  private  receipt  of  rent.  His  conclusion  was  that 
land  ownership  should  be  limited,  and  rent  should  be  legally 
reduced.^  But  he  lost  his  position  at  the  end  of  the  year 
above  mentioned,  so  his  theory  Vv^as  not  carried  out.  Pass- 
ing through  the  Sung,^  the  Yiian  and  the  Ming  ^  dynasties, 
the  general  amount  of  rent  was  practically  the  same,  one 
bushel  of  rice  for  each  acre  of  good  land.  At  the  present 
day,  the  rent  is  paid  partly  in  money. 

III.    INTEREST 

In  the  Chinese  language,  there  are  two  words,  interest 
and  profit.  But  the  word  profit  can  be  used  either  for  the 
word  interest  only,  or  for  both  interest  and  profit.  Hence, 
there  is  great  confusion.*  The  word  interest,  however, 
never  can  be  used  for  the  word  profit,  nor  can  it  include  the 
meaning  of  profit.  Therefore,  we  shall  discuss  the  prob- 
lem of  interest  first. 

I.  Justification  of  Interest 
The  word  interest  in  Chinese  is  called  hsi,  which  means 
child.  In  the  Historical  Record,  it  is  termed  *'  the  child 
money."  '"  In  the  Canon  of  History,  it  is  called  slieng, 
which  means  produce.  The  oldest  statement  is  in  the  Canon 
of  History.  It  was  said  by  P'an  Keng  (850-823  B.  K.  or 
1401-1374  B.  C.)  :  "  I  will  not  employ  those  v/ho  are  fond 
of  wealth  and  make  their  living  upon  the  multiplication  of 
interest."  "  Therefore,  the  capitalists  making  their  living 
upon  interest  were  very  prominent  during  the  Yin  dynasty. 
The  reason  why  P'an  Keng  did  not  want  to  employ  these 

^  General  Political  History,  ch.  ccxxxiv. 
'  History  of  Sung,  ch.  clxxiii. 
'  History  of  Ming,  ch.  Ixxviii. 

*  Cf.  infra,  p.  475.  s  ch.  cxxix. 

•  Cf.  Classics,  vol.  iii,  pt.  i,  p.  247. 


GENERAL  PRINCIPLES  OF  DISTRIBUTION 


473 


men  is  that  living  upon  interest  is  not  a  proper  thing  for 
the  officials,  because  officials  should  not  make  any  material 
gain  like  private  persons/  But  he  did  not  prohibit  the 
taking  of  interest.  Therefore,  anyone  had  the  right  of  tak- 
ing interest,  and  the  only  discouragement  was  that  he  would 
not  be  employed  as  an  official.  This  is  the  principle  of  Con- 
fucius. 

According  to  the  principles  of  Confucius,  taking  interest 
is  not  wrong.  Capital  is  the  mother,  and  interest  is  her 
child.  As  an  immediate  cause,  capital  can  produce  interest 
because  it  is  employed  under  the  guidance  of  the  entre- 
preneur. But  as  the  remote  cause,  the  entrepreneur  can  em- 
ploy the  capital  for  the  producing  of  interest  because  he  him- 
self either  is  a  capitalist,  or  can  borrow  it  from  the  capital- 
ist, for  he  cannot  make  interest  out  of  nothing.  Therefore, 
interest  is  imputed  to  capital  just  as  a  child  is  imputed  to 
its  mother.  In  Chinese  literature,  which  calls  it  "  child," 
there  never  has  been  a  single  quei-ition  about  its  justification. 
It  is  justified  very  plainly  by  the  language  itself,  and  it 
causes  no  argument.  The  different  usage  in  the  European 
languages  may  account  for  part  of  the  controversy  about 
the  taking  of  interest.  Confucius  gives  no  condemnation 
of  it. 

When  Mencius  quotes  the  words  of  Lung  Tzu,  who  says 
that  the  farmers  borrow  money  at  the  rate  of  one  hundred 
per  cent  for  the  clearing-up  of  tax-payment,  he  does  not 
blame  the  lender  for  the  high  rate  of  interest,  but  simply 
blames  the  system  of  taxation.*  He  knows  that  the  rate 
of  interest  is  determined  by  demand  and  supply,  so  that  he 
does  not  say  anything  against  it.  Even  of  sucn  a  high  rate 
of  interest  he  gives  no  condemnation,  and  certainly  he  docs 

*  See  infra,  pp.  543-8. 
'  See  infra,  pp.  623-4- 


474        ^^S  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

not  condemn  those  who  take  interest  at  the  natural  rate. 
In  fact,  the  Confucians  justify  the  taking  of  interest. 

2.  Rate  of  Interest 

Although  interest  is  justifiable,  what  sliould  be  its  natural 
rate?  On  this  point,  Confucius  does  not  touch.  Judging 
from  the  principles  of  the  Confucians,  and  the  common 
phrase,  ''  the  profit  of  one-tenth,"  we  may  venture  to  say 
that  the  ideal  rate  of  interest  from  the  Confucian  point  of 
view  would  be  ten  per  cent. 

In  the  Annotation  of  the  OMcial  System  of  Chou,  Cheng 
Hsiian  gives  his  theory  as  to  the  rate  of  interest  as  follows : 
When  the  government  bank  lends  capital  to  the  people,  the 
annual  rates  of  interest  are  different  according  to  the  resi- 
dence of  borrowers.  If  they  live  in  the  capital  city,  the  rate 
is  5  per  cent;  if  in  the  suburb,  lo  per  cent;  if  in  the  country, 
15  per  cent;  if  in  the  provinces,  20  per  cent.^  Therefore, 
the  rate  of  interest  is  higher  if  the  borrower  lives  further 
from  the  imperial  city.  We  are  not  sure  whether  this  rule 
was  made  by  the  Duke  of  Chou  or  not ;  but  the  theory  of 
Cheng  Hsiian  is  very  interesting.  Since  he  was  one  of  the 
greatest  Confucians,  and  his  commentary  had  a  great  in- 
fluence upon  historical  facts,  we  are  safe  in  saying  that 
it  is  the  theory  of  the  rate  of  interest  of  the  Confucians.  In 
explanation  of  this  theory,  we  may  make  a  suggestion :  As 
the  imperial  city  is  the  commercial  center,  the  rate  is  the 
lowest  one;  while  the  further  a  locality  is  from  the  center, 
the  higher  will  be  the  rate.  This  is  the  principle  that  de- 
mand and  supply  determine  the  rate  of  interest.  But,  as 
the  highest  rate  is  fixed  at  20  per  cent,  it  shows  that  the 
government  bank  is  for  the  good  of  the  people. 

The  rates  just  mentioned  may  have  been  theoretical  or 
ideal  rates.     We  now  come  to  the  historical  facts  concern- 

» Ch.  XV. 


GENERAL  PRIXCIFLES  OF  DISTRIBUTION  475 

ing  the  rate  of  interest.  According  to  the  Historical  Record, 
during  the  beginning  of  the  Han  dynasty,  the  annual  rate 
of  interest  among  all  the  farmers,  the  artisans  and  the  mer- 
chants, was  20  per  cent.  This  was  the  normal  rate.  In  398 
(154  B.  C. ),  when  the  princes  borrowed  money  for  a  mili- 
tary expedition,  the  abnormal  rate  was  as  high  as  ten  times 
the  principal,  because  the  risk  was  very  great. ^  According 
to  the  Lazi'  Code  of  the  T/ing  dynasty,'  the  rate  of  interest 
is  fixed  at  the  limit  of  30  per  cent.  But  the  commercial  rate 
of  the  present  day  is  much  lower  than  that  limit.  Gener- 
ally, it  is  8  per  cent,  although  varying  to  a  great  extent. 

IV.    PROFITS 

The  word  profit  has  been  loosely  used  for  a  long  time. 
In  ancient  times,  it  included  interest,  insurance  against 
risk,  and  wages  of  management.  Indeed,  besides  the 
expense  which  was  used  for  production,  all  gains  were 
summed  up  by  the  word  profit.  In  the  case  of  the  farmer, 
it  included  even  rent,  since  he  did  not  pay  rent  to  anyone, 
except  the  land  tax  to  the  government;  and  even  wages, 
since  he  himself  was  a  laborer.  Therefore,  we  must  under- 
stand the  scope  of  the  word  profit.  Since  the  term  profit 
applied  to  the  net  gain  of  an  entrepreneur  began  only  with 
F.  A.  Walker,  we  do  not  wonder  that  such  a  term  was 
loosely  used  in  ancient  China. 

I.  Profit  Seldom  Mentioned 
We  are  told  by  the  Analects  that  Confucius  rarely  spoke 
of  profit.^  This  statement  is  true.  The  reason  for  it 
is  pointed  out  by  Ssu-ma  Chien.  He  says :  **  Oh,  profit  is 
really  the  origin  of  disorder.  That  Confucius  seldom  spoke 
of  it  was  because  he  always  prevented  the  germ  of  dis- 

'  Ch.  cxxix.  '  Ch.  xiv. 

•  C/a.rjjVj,  vol.  i.  p.  216. 


^^6        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

order."  ^  Therefore,  Confucius  said:  "He  who  acts  with 
a  constant  view  to  his  own  profit  will  be  much  murmured 
against."  ^  Indeed,  Confucius  was  afraid  that  man  would 
care  too  much  for  selfish  gain.  During  the  time  of  Men- 
cius,  the  subject  of  profit  became  still  more  prominent. 
Therefore,  Mencius  not  only  seldom  used,  but  also  vehe- 
mently attacked,  the  word  profit.^  These  facts  indicate  that 
the  economic  principles  of  the  Confucians  are  from  the 
social  and  moral  points  of  view  rather  than  from  the  purely 
economic  point  of  view. 

2.  Justification  of  Profit 

Although  Confucius  seldom  spoke  of  profit,  he  did  not 
give  an}^  statement  against  the  common  people  who  make 
profit.  The  Canon  of  Poetry  says :  "  As  a  merchant  gains 
a  profit  of  three  hundred  per  cent,  a  superior  man  has  known 
it."  *  This  means  that  the  making  of  profit  is  a  proper  busi- 
ness of  the  merchant,  but  not  of  the  superior  man,  the  offi- 
cial. It  is  a  condemnation  of  the  official  who  makes  profit 
like  a  merchant,  but  not  a  condemnation  of  the  merchant. 
To  gain  a  good  profit  is  a  proper  thing  for  all  the  common 
people,  either  farmers,  or  artisans,  or  merchants;  and  it  is 
justified  by  Confucius. 

Even  his  own  pupils  Confucius  did  not  condemn  for  the 
making  of  profit.  As  we  have  known,  Tzii-kung  was  a  very 
great  merchant  of  that  time,  and  the  first  one  of  the  founders 
of  the  commercial  school.  One  day,  Confucius  said :  "There 
is  Hui !  He  has  nearly  attained  to  perfect  virtue.  He  is 
often  in  want.  Tz'u  does  not  acquiesce  in  the  appointment 
of   Heaven,  but   accumulates   commodities   for  the  multi- 

^  Historical  Record,  ch.  Ixxiv. 
'  Classics,  vol.  i,  p.  169. 
'  Ibid.,  vol.  ii,  pp.  125-7,  428-30. 
*  Ibid.,  vol.  iv,  pt.  ii,  p.  562. 


GENERAL  PRINCIPLES  OF  DISTRIBUTION  477 

plication  of  wealth.  Vet  his  speculations  are  often  success- 
ful." ^  Hui  was  the  personal  name  of  Yen  Viian,  and  Tz'u 
was  that  of  Tzu-kung.  Most  of  the  commentators  say  that 
Confucius  praised  Yen  N'iian  and  satirized  Tzu-kung.  But 
this  was  not  the  case.  Confucius  praised  >'en  ^'uan  indeed, 
but  he  praised  Tzu-kung  also.  Yen  Yiian  distinguished 
himself  by  his  virtue,  and  Tzu-kung  by  his  ability;  hence, 
they  are  both  appreciated  in  this  statement  of  Confucius 
Of  course,  when  Tzu-kung  was  compared  with  Yen  Yiian, 
Yen  Yiian  was  better  than  he;  but  when  he  was  compared 
with  all  the  pupils  of  Confucius,  he  stood  as  the  second 
figure  and  next  only  to  Yen  Yuan.'  Therefore,  Confucius 
praised  Yen  Yiian  first,  and  said  that  he  had  nearly  attained 
to  perfect  virtue.  But  he  praised  Tzii-kung  next,  and  said 
that  he  did  not  acquiesce  in  the  appointment  of  Heaven  and 
that  his  speculations  were  often  successful.  Let  us  think 
how  difficult  it  is  not  to  accept  the  appointment  of  Heaven 
and  to  succeed  frequently  in  speculation.  This  showed  the 
ability  of  Tzu-kung,  and  Confucius  appreciated  it  highly. 
From  the  moral  point  of  view.  Yen  Yiian  was  the 
best,  because  he  had  the  best  intellectual  power  but  did  not 
care  for  his  economic  life.  From  the  Mitellectual  point  of 
view,  Tzu-kung  was  a  ver>'  able  man,  yet  his  moral  char- 
acter had  no  wrong.  This  is  the  true  meaning  of  this  state- 
ment of  Confucius.  Now,  even  though  we  grant  that  he 
did  not  praise  Tzu-kung  at  all,  he  had  nothing  against  him. 
For,  the  making  of  comparison  between  Yen  Yii.in  and 
Tzii-kung  does  not  mean  that  one  is  right  and  the  other 
wrong.  Therefore,  we  may  say  that  Confucius  did  approve 
the  making  of  profit  by  Tzu-kung.  Even  if  he  did  not  do 
so.  he  certainly  did  not  condemn  it. 

In  the  Debate  on  the  Government  Monopoly  of  Salt  and 

'  (lassies,  vol.  i,  p.  243.  ^  Ibid.,  p.  176. 


^yg        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

Iron,^  Tzu-kung  is  defended.  It  says  that  he,  in  employing 
his  capital,  was  not  necessarily  getting  profit  out  of  the 
people.  He  simply  worked  with  his  brains,  exchanged 
commodities  according  to  the  conditions  of  the  market,  and 
took  profit  in  the  differences  of  prices.  From  this  point  of 
view,  profit  is  the  result  of  a  skilful  exchange,  and  it  is  not 
necessarily  taken  from  the  people. 

3.  Amount  of  Promts 

Since  the  amount  of  profits  is  uncertain,  we  cannot  make 
out  the  rate  of  profits.  According  to  the  statements  of  the 
ancient  books,  however,  we  may  get  a  general  idea  about  it. 
As  we  have  just  seen,  the  Canon  of  Poetry  mentions  a  profit 
of  three  hundred  per  cent.  The  "  Explanation  of  the  Tri- 
grams  "  also  speaks  about  the  profit  of  three  hundred  per 
cent  in  the  market.^  Therefore,  we  may  say  that  three  hun- 
dred per  cent  was  considered  as  a  good  profit  in  the  ancient 
times ;  but  it  was  not  an  extraordinarily  high  profit. 

In  the  Plans  of  the  Warring  States,  there  is  a  statement 
telling  about  the  rates  of  profits  as  follows:  Lii  Pu-wei  asks 
his  father,  "  How  many  times  more  is  the  profit  of  culti- 
vating land  than  the  amount  of  capital?"  "Ten  times,'' 
answers  his  father.  "  How  many  times  more  is  the  profit 
of  a  jeweller  than  the  amount  of  capital?"  he  asks  again. 
"  One  hundred  times  "  is  the  answer."^  Ji-'t^'gii^g  from  this 
statement,  the  rates  of  profits  during  the  period  of  Warring 
States  were  very  high.  Such  high  rates  of  profits,  how- 
ever, began  in  the  period  of  Spring  and  Autumn.  Kuan 
Tzu  says  that  the  merchants  may  gain  a  profit  of  one 
hundred  times  the  amount  of  capital,  and  that,  for  the  pre- 

^  Tt  was  written  by  Huan  K'uan  during  the  reign  of  Han  Hsiian  Ti 
(479-503,  or  73-49  B.  C).     Bk.  xvii. 
2  Yi  King,  p.  431.  ^  Bk.  vii. 


GENERAL  PRIXCIPLES  OF  DISTRIBUTION 


479 


vention  of  it,  a  ruler  must  have  a  profit  of  ten  times. ^  By 
this  statement,  he  means  that  the  ruler,  the  representative  of 
the  state,  should  get  the  profit  for  the  social  adjustment 
of  wealth,  and  that  private  merchants  gaining  extra- 
ordinary profit  should  be  prevented  because  they  hurt  the 
poor  and  destroy  the  equality  of  wealth.  In  conclusion,  the 
rates  of  profits  during  the  Chou  dynasty  were  very  high, 
but  the  word  profit  included  many  elements. 

^Bk.  Ixxiii. 


CHAPTER  XXV 

Wages 
i.  origin  of  wages 

When  everyone  works  for  himself,  there  are  no  wages 
to  be  paid  out,  although  the  element  of  wages  will  remain. 
Wages  come  when  men  work  for  others.  The  slave  works 
for  others,  yet  he  receives  no  wages.  Wages  come  when 
there  are  free  laborers.  In  the  historical  period,  China  had 
no  slavery  as  a  general  institution  in  the  economic  field. 
Every  man  was  free,  and  every  man  received  one  hundred 
acres  of  public  land  from  the  government.  Under  such  a 
system,  no  one  would  work  for  any  private  person,  nor  in 
public  employment,  unless  he  could  get  a  return  equal  to 
what  he  could  get  on  his  farm.  This  is  the  origin  of 
wages.  It  is  expressed  by  Mencius  and  the  "  Royal  Regu- 
lations "  as  "  the  substitute  for  tillag-e.'' 

As  the  word  salary  is  simply  the  higher  form  of  wages, 
there  is  no  essential  difference  between  salary  and  wages. 
Now,  in  the  Chinese  language,  salary  is  called  lu  and  grain 
is  called  kii.  The  commentator  of  the  "  Royal  Regula- 
tions "  says  that  lu  is  ku.  In  other  words,  salary  is  grain. 
Just  as,  in  modern  times,  wages  paid  by  money  are  ex- 
pressed in  money,  so,  in  ancient  China,  salary  paid  by  grain 
was  expressed  in  grain.  But  what  we  want  to  point  out 
here   is   that   the   Chinese  wages   system   came   from   the 

independent  farmer.      Instead   of  working  his  own   farm, 
480 


WAGES  481 

he  worked  for  others,  and  received  his  wages  in  grain  as 
a  substitute  for  tillage. 

In  the  western  world,  the  wages  system  came  from  slav- 
ery.^ But  in  China,  this  was  not  the  case.  In  the  Con- 
fucian writings,  all  public  officers  are  regarded  as  laborers, 
and  all  their  salaries  as  a  substitute  for  tillage.  Had 
China  had  a  slave  class,  the  public  officers  would  not  get 
any  pay,  because  they  would  have  slaves  to  do  the  tillage 
for  them,  and  they  should  serve  through  their  leisure  the 
public  for  nothing.  This  had  been  done  in  ancient  Greece. 
Moreover,  even  if  the  public  officers  should  receive  pay, 
why  should  Mencius  call  it  a  substitute  for  tillage?  If 
they  had  had  slaves,  and  had  not  tilled  the  land  at  all, 
why  should  their  salary  be  called  by  a  name  which  would 
not  have  been  appropriate?  We  know  perfectly  now,  that, 
because  China  had  no  slavery,  and  because  the  ancient 
Chinese  all  worked  on  farms,  such  an  expression  as  the  sub- 
stitute for  tillage  came  to  be  used.  For  this  reason,  even 
at  the  present  day,  in  the  English  language,  the  public 
officers  are  called  public  servants;  but  in  Chinese,  they  are 
called  public  laborers  {pai  fciing  or  ch'cn  kitng).  The  word 
servant  comes  from  the  dependent  slave,  but  the  word 
laborer  from  the  independent  workman. 

II.    EMPLOYER  AND  EMPLOYEE 

The  wages  system  in  China  is  very  old,  and  we  do  not 
know  its  beginning.  According  to  Mo  Ten,  we  know  that 
Fu  Yiieh  arose  from  a  wage-earner  in  the  building  business 
to  be  the  prime  minister  of  the  Yin  dynasty.^  Therefore, 
the  wages  system  must  have  existed  long  before  that  time 
(770  B.  K.  or  1 32 1  B.  C). 

In  the  beginning  of  the  Chou  dynasty,  the  hire  system 

'  Labor  Problems,  by  T.  S.  Adams  and  H.  L.  Sumner,  p.  7. 
«  P.k.  ix. 


^S2        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

existed  in  agricultural  life.  The  Canon  of  Poetry  says : 
"  There  are  the  master  and  his  elder  son;  his  younger  sons, 
and  all  their  children;  their  strong  helpers,  and  their  hired 
laborers."  ^  All  of  them  work  on  the  farms.  The  strong 
helpers  are  those  who,  after  doing  their  own  work,  are  able 
to  go  and  give  a  hand  where  they  are  needed.  The  hired 
laborers  are  those  who  serve  their  master  at  his  disposal. 
Here  we  find  that  there  is  a  separation  of  these  two  classes 
— the  master  and  the  hired  laborer. 

According  to  the  Official  System  of  Chou,  the  separation 
of  these  two  classes  is  very  clear.  It  says :  ''  The  master 
gains  the  people  with  profit."  This  means  that  the  em- 
ployer, with  the  power  of  wealth  which  comes  from  his 
profits,  can  gain  a  great  number  of  people  who  are  the 
wage-earners.  It  is  nothing  against  the  employer,  but 
rather  indicates  the  fact  that  he  is  the  leader  of  the  people 
for  the  combination  of  economic  forces.  It  divides  the 
wage-earners  into  two  classes — servants  and  laborers.  The 
servants  mostly  work  at  home;  their  labor  is  somewhat 
easy;  and  their  relation  to  the  master  is  close  and  some- 
what permanent.  The  laborers  work  anywhere;  their  labor 
is  heavy;  and  their  relation  to  the  master  is  loose  and  not 
permanent.^  It  is  a  matter  of  fact  that  the  class  of  wage- 
earners  exists  even  under  the  most  favorable  conditions, 
because  the  abilities  of  men  are  unequal. 

For  dealings  between  employer  and  employee,  there  is 
a  general  rule  given  in  the  Record  of  Rites.  When  an  em- 
ployee wishes  to  undertake  some  work  for  an  employer,  he 
should  measure  his  ability  and  duty,  and  all  the  labor  con- 
ditions first,  before  entering  on  his  employment.  In  this 
way,  the  one  party  has  no  ground  for  offense,  and  the  other 

*  Classics,  vol.  iv,  pt.  ii,  p.  6oi. 
'  Ch.  ii. 


JVAGES  483 

avoids  all  risk  of  guilt.'  According  to  this  rule,  the  em- 
ployee should  make  a  careful  bargain  in  the  beginning,  and 
employer  and  employee  should  not  fight  against  each  other 
afterward.  If  laborers  would  observe  this  rule,  labor  dis- 
putes would  be  much  fewer. ^ 

III.    THE  PRODUCTIVITY  THEORY 

The  wages  theory  of  Confucius  is  a  productivity  theory. 
This  means  that  the  amount  of  wages  of  the  laborer  should 
be  according  to  the  product  which  he  contributes.  Con- 
fucius says :  ''  By  daily  examinations  and  monthly  trials, 
and  by  making  their  rations  in  accordance  with  their  labors: 
this  is  the  way  to  encourage  all  the  classes  of  artisans."  ^ 
This  is  the  principle  of  justice  governing  the  law  of  wages. 
Of  course,  labor  should  not  be  underpaid :  yet  neither  should 
it  be  overpaid.  If  it  were  overpaid,  or  to  state  it  clearly,  if 
poor  labor  were  as  well  paid  as  good  labor,  there  would 
be  no  encouragement  for  all  classes  of  artisans.  The  good 
laborer  would  be  disappointed,  the  survival  would  be  of  the 
unfit,  and  the  standard  of  workmanship  would  be  lowered. 
But.  if  we  want  to  pay  wages  according  to  product,  daily 
examinations  and  monthly  trials  are  necessary;  otherwise 
we  cannot  know  the  amount  of  productivity  of  labor.  This 
theory  is  the  fundamental  law  of  wages. 

W^hat  Confucius  refers  to  is  the  factory  system  under 
which  the  government  is  the  employer.  If  the  government 
wants  to  make  the  state  rich,  it  must  give  the  laborers  just 
wages;  this  is  the  principle  of  inducing  all  the  classes  of 
artisans  to  come  in.     If  it  is  not  so,  the  artisans  will  neither 

*  I.i  Ki.  bk.  XV.  p.  72. 

2  In  Canton  there  are  the  so-called  "seventy-two  trade  guilds;" 
trade  unions  have  lieen  organized  on  the  side  of  the  employees.  Both 
have  existed   for  centuries. 

*  See  supra,  p.  316. 


484        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

immigrate  nor  stay,  and  the  wealth  of  the  state  will  not  be 
sufficient.  Kuan  Tzu  also  recognizes  the  importance  of 
encouraging  artisans  to  come  in,  but  his  policy  for  carry- 
ing it  out  is  to  raise  wages  to  a  rate  three  times  as  great 
as  that  of  other  states.^  This  policy  cannot  be  a  gen- 
eral principle,  but  simply  a  temporary  measure  for  an 
emergent  demand  for  labor.  From  the  statements  of  Con- 
fucius and  Kuan  Tzu,  we  know  that^  in  the  Chou  dynasty, 
there  was  a  free  movement  of  labor,  and  there  was  inter- 
national competition  for  the  labor  market;  hence,  the 
amount  of  wages  was  the  determining  factor  in  the  move- 
ment of  labor. 

The  productivity  theory  is  applied  not  only  to  manual 
labor,  but  also  to  mental  labor.     Confucius  says: 

In  the  service  of  a  ruler,  when  great  words  are  spoken  to  and 
accepted  by  him,  great  advantages  to  the  state  may  be  ex- 
pected from  them ;  and  when  words  of  small  importance  are 
presented  to  him,  only  small  advantages  are  to  be  looked  for. 
Therefore,  a  superior  man  will  not  for  words  of  small  im- 
portance receive  a  great  salary,  nor  for  words  of  great  import- 
ance a  small  salary.^ 

Even  in  regard  to  the  value  of  words,  they  should  be 
neither  overpaid  nor  underpaid.  This  is  the  principle  of 
justice,  and  *'t  is  the  rule  of  accepting  wages. 

According  to  Confucius,  however,  a  superior  man  may 
accept  underpay,  but  not  overpay.     He  says  : 

The  superior  man  will  decline  a  position  of  high  honor,  but 
not  one  that  is  mean ;  and  riches,  but  not  poverty.  In  this 
way,  disorder  will  more  and  more  disappear.  Hence,  the 
superior  man,  rather  than  have  his  emoluments  superior  to 
his  worth,  will  have  his  worth  superior  to  his  emoluments.^ 

*  Bk.  li.  «  J.i  Ki,  bk.  xxix,  p.  345. 

*  Li  Ki,  bk.  xxvii,  p.  286. 


IV  AGES  485 

This  principle  is  based  on  moral  and  social  reasons,  but  not 
on  economic  law.  According  to  econoniic  law.  men  should 
never  be  overpaid,  nor  underpaid. 

According  to  the  principles  of  the  Confucians,  divi- 
sion of  labor  is  a  very  important  thing  for  society,  and  all 
labor  is  productive.  Not  only  is  the  farmer  productive,  but 
also  the  artisan  and  the  merchant.  Again,  not  only  are 
these  three  classes  of  people  productive,  but  also  the  politi- 
cal officer  and  the  moral  teacher.  Referring  to  these  two 
classes  of  men,  there  are  many  arguments  saying  that  they 
are  unprofluctive.  For  this  reason,  let  us  study  their  pro- 
ductivity. 

First,  let  us  see  how  the  political  officer  is  productive. 
When  Chen  Hsiang.  formerly  a  Confucian,  but  converted 
by  Hsii  Hsing,  visited  Mencius,  he  quoted  the  words  of 
Hsii  Hsing  to  the  effect  that  the  ruler  should  cultivate  the 
land  equally  and  along  with  his  people.^  Mencius  said  :  "  1 
suppose  that  Hsii  Tzu  sows  grain  and  eats  the  produce.  Is 
it  not  so?"  "  It  is  so,"  was  the  answer.  "  I  suppose  also 
he  weaves  cloth,  and  wears  his  own  manufacture.  Is  it  not 
so?"  "No.  Hsii  Tzu  wears  clothes  of  hair-cloth." 
"Does  he  wear  a  cap?"  "He  wears  a  cap."  "What 
kind  of  cap?"  "  A  plain  cap."  "  Is  it  woven  by  himself ?  " 
"  No.  He  gets  it  in  exchange  for  grain."  "  Why  does 
Hsii  not  weave  it  himself?  "  "  That  would  injure  his  hus- 
bandry." "  Does  Hsu  cook  his  food  in  boilers  and  earthen- 
ware pans,  and  does  he  plough  with  an  iron  share?" 
''  Yes."  "Does  he  make  those  articles  himself?"  "No. 
He  gets  them  in  exchange  for  grain." 

Mencius  then  said : 

The  getting  those  various  articles  in  exchange  for  grain,  is 
not  oppressive  to  the  potter  and  the  founder,  and  the  potter 

'  See  supra,  p.  385. 


486        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

and  the  founder  in  their  turn,  in  exchanging  their  various 
articles  for  grain,  are  not  oppressive  to  the  husbandman.  How 
should  such  a  thing  be  supposed?  And  moreover,  why  does 
not  Hsii  Tzii  establish  the  pottery  and  foundery,  supplying 
himself  with  the  articles  which  he  uses  solely  from  his  own 
establishment?  Why  does  he  go  confusedly  dealing  and  ex- 
changing with  all  the  artisans?  Why  does  he  not  spare  him- 
self so  much  trouble? 

Chen  Hsiang  replied :  ''  The  business  of  the  artisans  can  by 
no  means  be  carried  on  along  with  the  business  of  hus- 
bandry." 

Mencius  resumed: 

Then,  is  it  the  government  of  the  empire  which  alone  can  be 
carried  on  along  with  the  practice  of  husbandry?  Great  men 
have  their  proper  business,  and  little  men  have  their  proper 
business.  Moreover,  even  in  the  case  of  any  single  person, 
he  may  require  various  articles  which  are  produced  by  all 
classes  of  artisans: — if  he  must  first  make  them  for  his 
own  use,  this  way  of  doing  would  lead  the  whole  world  into 
poverty/ 

The  doctrine  of  Hsii  Hsing  is  extremely  democratic.  He 
teaches  that  everyone  should  support  his  mouth  by  his  own 
hand,  and  that  all  rulers  should  be  farmers.  But  it  is  im- 
possible. Mencius'  doctrine  is  based  on  the  principle  of 
division  of  labor.  The  governing  class  supported  by  others 
does  not  oppress  the  people,  because  the  men  of  this  class 
cannot  cultivate  the  land  at  the  same  time  they  work  in  the 
government,  and  because  their  mental  work  cannot  be  done 
by  the  governed.  It  is  merely  an  exchange  of  services,  and 
the  governing  class  and  the  governed  class  depend  upon 
each  other.  The  ruler  exchanges  his  governmental  v^ork 
for  food  from  the  farmer  just  as  the  potter  and  the  founder 

*  Classics,  vol.  ii,  pp.  247-9. 


WAGES  4C7 

exchange  their  articles  for  the  grain  of  the  farmer.  From 
this  point  of  view,  we  can  justify  not  only  the  political  rela- 
tion between  the  ruler  and  the  subject,  but  also  the  economic 
relation  between  manager  and  common  laborer.  Indeed, 
distribution  according  to  productivity  is  universal  justice. 

Second,  let  us  see  how  the  moral  teacher  is  productive. 
Followed  by  *'  several  tens  "  of  carriages  and  attended  by 
several  hundred  men.  this  is  the  way  Mencius  traveled 
from  one  prince  to  another,  and  lived  on  their  hospitality. 
P'eng  Keng,  his  pupil,  thinking  this  excessive,  says:  ''  For 
a  scholar,  doing  no  business,  to  receive  his  support,  is  im- 
proper."    Mencius  answers : 

If  you  do  not  have  interchange  of  service  and  exchange  of 
productivity,  so  that  one  from  his  overplus  may  supply  the 
(lifficiency  of  another,  then  the  husbandmen  will  have  a  super- 
fluity of  grain,  and  the  women  will  have  a  superfluity  of  cloth. 
li  you  have  such  an  interchange,  carpenter,  mason,  wheel- 
maker,  and  carriage-wright.  may  all  get  their  food  from  you. 
Here  now  is  a  man,  who  is  filial  at  home,  and  fraternal  abroad ; 
who  keeps  the  principles  of  the  ancient  kings,  awaiting  the 
rise  of  future  learners : — and  yet  you  will  refuse  to  support 
him.  How  is  it  that  you  give  honor  to  the  carpenter,  mason, 
wheel-maker,  and  carriage-wright,  and  slight  him  who  prac- 
tises benevolence  and  righteousness? 

Then  P'eng  Keng  says  that  those  laborers  should  be  fed 
by  society  because  their  purpose  is  for  their  living,  but  that 
the  superior  man  should  not  be  fed  by  society  because  his 
purpose  is  not  for  his  living.  Mencius  replies:  "What 
have  you  to  do  with  their  purpose?  Anyone  who  is  of  ser- 
vice to  you  deserves  to  be  supported,  and  should  be  sup- 
ported." Then  he  asks  P'eng  Keng  whether  he  would  pay 
a  man  for  his  purpose  or  for  his  service.  To  this  P'eng 
cannot  help  but  answer  that  he  would  pay  him  for  his  pur- 
pose. 


^88        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

Mencius  asks  him :  "  There  is  a  man  here,  who  breaks 
your  tiles,  and  disfigures  your  painted  walls  with  his  knife; 
his  purpose  may  be  thereby  to  seek  for  his  living,  but  will 
you  indeed  remunerate  him?"  '*  No,"  says  P'eng.  Then 
Mencius  concludes :  "  That  being  the  case,  it  is  not  the  pur- 
pose which  you  remunerate,  but  the  work  done."  ^  From 
Mencius'  point  of  view,  the  formula  of  distributive  justice 
is :  to  each  according  to  his  productivity,  not  his  wants. 

Kung-sun  Ch'ou,  pupil  of  Mencius,  says  to  him :  "  It  is 
said  in  the  Canon  of  Poetry,  '  He  will  not  eat  the  bread  of 
idleness.'  How  is  it  that  we  see  superior  men  eating  with- 
out farming?"  Mencius  replies:  "  When  a  superior  man 
resides  in  a  country,  if  its  sovereign  employ  his  counsels, 
he  comes  to  tranquillity,  wealth,  honor,  and  glory.  If  the 
young  in  it  follow  his  instructions,  they  become  filial,  fra- 
ternal, faithful,  and  sincere.  What  greater  example  can 
there  be  than  this  of  not  eating  the  bread  of  idleness?  "  '^ 

The  arguments  of  both  P'eng  Keng  and  Kung-sun  Ch^ou 
refer  to  Mencius  himself.  But  he  maintains  that  reward 
should  be  according  to  productivity,  and  that  a  moral 
teacher  is  much  more  productive  than  a  carpenter,  mason, 
wheel-maker,  carriage-wright  or  farmer.  In  short,  by  pro- 
ductivity, he  means  production  of  utility,  and  not  merely 
production  of  things.  Since  a  moral  teacher  produces  a 
great  amount  of  social  utility,  he  is  justified  in  receiving  a 
reward  from  society. 

IV.    STANDARD   OF   WAGES 

As  we  have  seen  that  wages  are  a  substitute  for  till- 
age, the  products  of  the  former  are  therefore  the  bases 
of  wages.  Just  as  the  amount  of  products  is  different 
among  farmers,  so  the  amount  of  wages  is  also  different 

'  Classics,  vol.  ii,  pp.  269-271. 
*  Ibid.,  p.  467. 


WAGES  489 

among  laborers.  Vet  there  must  be  an  equality  between 
the  products  of  the  farmers  and  the  wages  of  other  laborers, 
otherwise  no  one's  wages  would  be  enough  to  substitute  for 
tillage,  and  no  one  would  give  up  his  farm  for  other  em- 
ployment. 

According  to  Alencius  and  the  "  Royal  Regulations," 
the  standard  of  wages  is  something  like  this :  Each  farmer 
tills  own  hundred  acres,  together  with  some  capital  such  as 
manure.  Vet  the  products  of  the  farmers  are  different 
from  each  other.  They  are  classified  into  five  grades.  The 
products  of  the  best  farmer  can  support  nine  persons,  and 
the  products  of  those  ranking  next  to  him  can  support  eight. 
The  products  of  the  average  farmer  can  support  seven  per- 
sons, and  the  products  of  those  ranking  next  to  him  can 
support  six.  The  products  of  the  poor  farmer  can  support 
only  five  persons.  These  differences  in  their  products  are 
due  to  the  fact  that  their  efficiency  is  various.  Yet  they 
serve  as  the  standard  for  the  wage  scale  of  common 
laborers.  The  salaries  of  the  common  people  who  are  em- 
ployed about  the  government  offices  are  regulated  according 
to  these  five  grades.^ 

The  wages  theor}'  of  Mencius  is  quite  like  that  of  Henry 
George.  Henry  George  takes  the  margin  of  production  of 
the  fanner  as  the  standard  of  wages.  The  amount  which 
the  farmer  can  produce  upon  free  land  for  himselc  is  the 
basis  of  wages,  otherwise  he  will  not  work  for  others.  "The 
condition  of  labor  in  these  first  and  widest  of  occupations." 
he  says.  '*  determines  the  general  condition  of  labor,  just  as 
the  level  of  the  ocean  determines  the  level  of  all  its  arms  and 
bays  and  seas."  *  This  is  exactly  what  Mencius  means.  In 
the  time  of  Mencius.  there  was  no  private  ownership  of 

'  Classics,  vol.  ii,  p.  376,  and  /./  Ki.  bk.  iii,  p.  210. 
*  Social  Problem,  p.  190. 


490        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

land;  every  man  received  free  land  from  the  government; 
and  agriculture  was  the  dominant  industry.  Under  such 
conditions,  the  standard  of  wages  was  necessarily  equal  to 
the  gain  of  the  farmer,  although  the  latter' s  gain  was  mixed 
with  land  values. 

In  the  statements  of  Mencius  and  the  "  Royal  Regula- 
tions," wages  means  real  wages.  Those  statements  do  not 
measure  wages  in  terms  of  money,  nor  in  terms  of  any 
particular  good,  but  in  a  certain  amount  of  general 
products  which  can  support  a  certain  number  of  per- 
sons. This  theory  of  real  wages  will  hold  true  in  all  places 
and  all  times.  Even  the  standard  of  living  affects  the 
rise  and  fall  of  wages,  but  it  cannot  affect  the  wage  scale 
itself.  If  the  standard  of  living  is  higher,  it  requires  higher 
wages ;  if  it  is  lower,  it  allows  lower  wages.  But,  in  either 
case,  the  lowest  wages  in  the  scale  must  be  sufficient  to  sup- 
port five  persons,  and  the  relation  among  the  different  wages 
will  remain  the  same  in  the  scale.  Because  the  scale  is 
based  on  real  wages,  the  principle  of  wage-measuring  will 
not  be  changed  by  changes  in  the  quantity  of  money,  rtor  by 
the  movement  of  price,  nor  by  the  standard  of  living. 

The  statements  of  Mencius  and  the  ''  Royal  Regula- 
tions "  also  fix  the  limit  of  the  minimum  wage.  Cantil- 
lon  says :  "  The  lowest  species  of  common  laborers  must 
everywhere  earn  at  least  double  their  own  maintenance,  in 
order  that  one  with  another  they  may  be  enabled  to  bring 
up  two  children."  '  Adam  Smith  said  that  in  Great  Britain 
the  wages  of  labor  seemed,  in  his  day,  to  be  evidently  more 
than  what  was  precisely  necessary  to  enable  the  laborer  to 
bring  up  a  family.^  But  Mencius  and  the  "  Royal  Regula- 
tions "  give  definitely  the  law  of  minimum  wage — that  is, 
the  lowest  rate  of  the  wage  of  the  poorest  laborer  must  be 

*  Wealth  of  Nations,  bk.  i,  ch.  viii,  p.  70.  ^  Ibid.,  p.  75- 


WAGES 


491 


large  enough  to  support  five  persons.  This  is  the  smallest 
product  of  the  poor  farmer,  and  fixes  the  smallest  wage  oi" 
the  lowest  laborer. 

V.   IDEAL  SCALE  OF  WAGES  IN   THE  WHOLE  SOCIETY 

As  we  have  said  that  the  Confucians  regard  all  public 
officers  as  laborers,  and  their  salaries  as  wages,  we  can  now 
form  an  ideal  scale  of  wages  in  the  whole  society.  From 
the  Confucian  point  of  view,  we  never  could  make  such  a 
mistake  as  to  say  that  agricultural  labor  is  the  only  pro- 
ductive labor.  The  farmer  is  a  real  farmer  indeed,  but  the 
public  officer  is  a  substitute  for  the  farmer.  The  difference 
between  the  farmer  and  the  public  officer  simply  is  in  the 
division  of  labor.  Now,  some  officers  are  not  only  pro- 
ductive, but  also  in  a  much  higher  degree  than  the  farmer. 
And  in  turn,  society  gives  them  a  reward  much  higher 
than  the  ordinary  wage.  According  to  Mencius,  the  pro- 
duct of  the  best  farmer  forms  the  basis  of  the  salaries  of 
all  public  officers.  The  salary  of  the  subordinate  scholar 
is  equal  to  the  product  of  the  best  farmer;  that  of  the 
middle  scholar  is  twice  as  much  as  the  product  of  the  best 
farmer:  that  of  the  superior  scholar  is  four  times  as  much. 
The  salary  of  the  great  official  is  eight  times  as  much. 
All  the  salaries  of  the  three  classes  of  scholars  and  of  the 
great  officials  are  uniform  throughout  the  whole  empire. 
Then  the  salary  of  the  minister  of  the  small  state  is  sixteen 
times  the  product  of  the  best  farmer,  and  that  of  his  prince 
is  one  hundred  sixty  times;  that  of  the  minister  of  the 
second  state  is  twenty-four  times,  and  that  of  his  prince 
two  hundred  forty  times;  that  of  the  minister  of  the  great 
state  is  thirty-two  times,  and  that  of  his  prince  three  hun- 
dred twenty  times.  The  salaries  of  the  ministers  and 
princes  vary  according  to  the  size  of  their  state.  Mencius 
does  not  mention  the  amount  of  the  salary  of  the  emperor. 


492 


THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 


yet  it  is  implied  in  the  principle  that  the  salary  of  the  ruler 
is  ten  times  that  of  his  minister.  We  can  say,  therefore, 
that  the  salary  of  the  emperor  is  three  thousand  two  hun- 
dred times  the  product  of  the  best  farmer,  because  the  in- 
come of  his  minister  is  equal  to  that  of  the  prince  of  the 
great  state.  In  short,  the  emperor  and  all  other  public  offi- 
cers are  laborers  who  are  substitutes  for  the  farmers,  work- 
ing in  the  government;  and  all  their  salaries  are  wages, 
which  are  the  substitute  for  tillage.  Although  their  labor 
is  not  of  the  same  kind,  and  their  wages  are  not  of  the  same 
amounts,  the  scale  of  their  wages,  nevertheless,  is  propor- 
tional to  the  product  of  the  farmer. 

Now,  what  is  the  scale  of  wages  of  common  laborers? 
This  scale  has  been  stated  before,  but  it  should  be  made 
clearer  now.  The  scale  of  common  wages  is  based  on  the 
amount  of  product  of  the  poor  farmer,  which  is  large 
enough  to  support  five  persons.  Then  the  scale  goes  up  to 
the  different  amounts  of  wages  which  can  support  six,  seven, 
eight  and  nine  persons.  In  this  scale,  there  are  five  grades. 
The  highest  wage  for  common  labor  is  sufficient  to  sup- 
port nine  persons,  and  the  lowest,  to  support  five. 

Therefore,  we  can  see  the  whole  scale  of  all  the  various 
wages  in  the  whole  society.  The  so-called  professional  men 
or  salaried  class  should  belong  to  the  official  class.  There 
are  six  main  gradations  in  their  wages.  But,  if  we  come 
to  details,  there  are  really  eleven  grades  as  shown  by  the 
different  amounts  of  salary.  The  manual-labor  or  wage- 
earning  class  belong  to  the  farmer  class.  Their  wages  are 
of  five  grades.  The  salary  of  the  subordinate  scholar  and 
the  product  of  the  best  farmer  stand  exactly  on  the  divid- 
ing line  between  the  official  and  the  farmer  classes.  Tak- 
ing two  extremes  in  this  scale,  the  poor  farmer  leceives 
the  lowest  wage,  the  emperor  the  highest.  Or,  in  other 
words,  the  minimum  wage  can  support  five  persons,  and  the 


WAGES 


4<>3 


maximum  wage  can  support  two  million  eight  hundred 
eighty  thousand  persons. 

VI.  EDUCATION  AS  A  SOLUTION   OF  THE  WAGES  PROBLEM 

Since  there  are  ofificials,  and  their  salary  is  great,  how 
can  we  solve  the  problem  of  wages  and  distribute  wealth 
justly?  It  is  by  education.  Adam  Smith  says:  **  The  dif- 
ference between  the  most  dissimilar  characters,  between  a 
philosopher  and  a  common  street  porter,  for  example,  seems 
to  arise  not  so  much  from  nature,  as  from  habit,  custom, 
and  education."  This  is  exactly  the  view  of  Confucius.^ 
He  says : 

Those  who  are  born  with  the  possession  of  knowledge  are 
the  highest  class  of  men.  Those  who  learn,  and  so  readily 
get  possession  of  knowledge,  are  the  next.  Those  who  are 
dull  and  stupid,  and  yet  compass  learning,  are  another  class 
next  to  these.  As  to  those  who  are  dull  and  stupid  and  yet 
do  not  learn,  they  are  the  lowest  of  the  people. - 

Therefore,  man  is  determined,  not  by  nature,  but  by  edu- 
cation. If  he  has  education,  even  though  he  be  dull  and 
stupid,  he  will  be  ranked  with  those  two  classes  of  men  in 
the  final  result.*  And  the  really  low  class  of  people  are  only 
those  who  do  not  educate  themselves.  Since  education 
determines  the  standing  of  men.  it  determines  also  their 
wages. 

When  Tzu-chang  wants  to  learn  something  about  the 
getting  of  an  official  salary,  Confucius  says : 

Hear  much  and  put  aside  the  points  of  which  you  stand  in 
doubt,  while  you  speak  cautiously  at  the  same  time  of  the 
others:  then  you  will  afford  few  occasions  for  blame.  See 
much  and  put  aside  the  things  which  seem  perilous,  while  you 

'  See  supra,  p.  135. 

'  Classics,  vol.  i.  pp.  313-4.  '  Ibid.,  p.  407. 


494 


THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 


are  cautious  at  the  same  time  in  carrying  the  others  into 
practice :  then  you  will  have  few  occasions  for  repentance. 
When  one  gives  few  occasions  for  blame  in  his  words,  and 
few  occasions  for  repentance  in  his  conduct,  he  is  in  the 
way  to  get  a  salary.^ 

One  day  Confucius  said  .-"There  is  ploughing;  even  in 
that  there  is  sometimes  want.  So  with  learning;  an  offi- 
cial salary  may  be  found  in  it."  ^  According  to  him,  al- 
though education  is  not  for  the  sake  of  getting  a  salary,  it 
is  the  way  of  getting  it.  Therefore,  he  points  out  that  the 
salary  is  the  result  of  education,  in  order  to  encourage  the 
people  to  learn. 

According  to  Mencius,  everyone  may  become  like  Yao 
and  Shun ;  ^  and  according  to  Hsun  Tzii,  anyone  on  the 
street  may  become  like  Yii.  Their  meaning  is  that  everyone 
may  become  a  sage.  But  Hsun  Tzu  explains  this  point 
more  clearly.    He  says : 

Let  any  man  on  the  street  addict  himself  to  the  art  of  learning 
with  all  his  heart  and  the  entire  bent  of  his  will,  thinking,  and 
closely  examining;  let  him  do  this  day  after  day,  through 
a  long  space  of  time,  accumulating  what  is  good,  and  he  will 
penetrate  as  far  as  a  spiritual  intelligence,  and  he  will  become 
a  triumvir  with  Heaven  and  Earth.  It  follows  that  the  char- 
acters of  the  sages  were  what  any  man  may  reach  by  ac- 
cumulation.* 

Hence,  according  to  Hsun  Tzu,  education  is  the  only  thing 
which  makes  the  mean  noble,  the  fool  wise,  and  the  poor 
rich.  Indeed,  education  has  great  power  to  make  the  man. 
Even  if  the  educated  man  is  poor,  he  is  really  rich  on  ac- 
count of  his  worthiness." 

*  Classics,  vol.  i,  p.  151. 

'  Ibid.,  p.  303.  »  Ibid.,  vol.  ii,  p.  424. 

*  Ibid.,  pp.  85-6.  5  Bk.  viii. 


IV  AGES 


495 


There  is  a  poem  written  by  Han  Yii  emphasizing  the 
importance  of  education  for  the  encouraging  of  his  son, 
Han  Fu,  to  study.    In  part  it  runs  as  follows : 

If  you  want  to  know  the  effect  of  education. 

It  is  that  the  wise  and  the  fool  are  of  the  same  origin ; 

Because  they  cannot  have  the  same  learning, 

Different  houses  they  are  entering. 

Two  families  respectively  have  a  son ; 

The  skill  of  the  two  babies  is  at  the  same  condition. 

When  they  are  a  little  older, 

As  a  couple  of  fishes  they  play  together. 

Up  to  the  age  of  twelve  or  thirteen. 

The  differences  in  their  appearance  just  begin. 

At  twenty,  they  are  more  unlike : 

Clean  canal  and  cesspool  in  the  sight. 

At  thirty,  their  physical  development  is  certain : 

But  one  hog  and  one  dragon. 

The  latter  flies  away, 

And  cannot  help  the  toad  on  its  way. 

The  one  is  a  driver  before  a  horse; 

His  back  is  flogged  and  becomes  the  home  of  insects. 

The  other  is  a  duke  and  a  minister, 

Living  in  a  mansion  in  a  magnificent  manner. 

Ask  what  is  the  reason. 

Education  and  non-education. 

Gold  and  jade  although  they  come  so  dear. 

Soon  waste  away  and  disappear. 

Education  is  kept  in  your  body ; 

While  the  body  exists,  it  is  plenty 

That  the  people  belong  to  either  high  or  low  class, 

Is  not  on  account  of  their  parents. 

Don't  you  see  the  duke  and  the  minister. 

Raising  themselves  from  the  farmer^ 

Don't  you  see  the  descendants  of  the  nobles. 

Hungry  and  cold,  go  out  without  an  ass ' 

All  that  we  have  said  above  concerns  the  relation  between 
education  and  official  salary.  But  how  about  the  relation 
between  education  and  ordinary  wages?  It  will  be  the  same 
thing.  If  the  unskilled  laborer  wants  to  get  the  wage  of  the 
skilled  laborer,  he  must  first  educate  himself  to  be  a  skilled 


496        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

laborer.  If  he  wants  to  get  the  salary  of  the  manager,  he 
must  first  educate  himself  as  a  manager.  It  is  sometimes 
the  case  that  he  cannot  get  a  good  salary,  even  though  he 
has  a  good  education.  But  there  is  no  hope  of  his  getting  a 
good  salary  without  educating  himself.  Therefore,  just  as 
political  democracy  is  based  on  education,  so  also  is  in- 
dustrial democracy  based  on  education.  In  short,  from  the 
Confucian  point  of  view,  education  is  the  solution  of  the 
wages  problem,  which  is  the  chief  problem  in  the  distribu- 
tion of  wealth. 


BOOK  VIII.     SOCIALISTIC  POLICIES 


CHAPTER  XXVI 

The  Tsing  Tien  System  ^ 

i.  history  of  tsing  tien 

The  tsing  tien  system  is  the  most  important  element  in 
Chinese  economic  thought  and  history.  According  to  a 
few  modern  scholars,  this  system  was  never  in  actual  opera- 
tion, but  only  a  theory  of  Confucians.  It  is  true  that  in 
ancient  times,  the  tsing  tien  system  could  not  have  been  as 
perfect  as  the  Confucians  taught;  but  it  is  also  true  that 
this  system  had  been  partly  realized  before  the  time  of  Con- 
fucius. Probably  the  original  form  of  this  system  was  not 
unlike  the  manorial  system  of  England ;  it  was  then  im- 
proved by  many  of  the  ancient  great  kings ;  and  finally  it 
was  modified  by  the  Confucians  into  an  ideal  system.  But, 
so  far  as  we  can  judge  from  Chinese  literature,  however 
imperfect  the  tsing  tien  system  was  originally,  it  was  never 
as  bad  as  the  English  manorial  system,  nor  was  the  condition 
of  the  people  so  wretched  as  that  of  the  villeins.  Let  us 
study  the  history  of  tsing  tien  system. 

I .  The  Reign  of  Huang  Ti 
According  to  historians,  the  tsing  tien  system  began  in 
the  legendary  age.     Muang  Ti  (2147-2048  B.  K.  or  2698- 
2599  B.  C ),  the  founder  of  the  Chinese  Empire,  was  its 

*  For  till'  nu'.ininur  nii'l  the  form  of  tsi)u/  tirti  see  suf^ni,  pp.  352-5. 

497 


498        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

originator.  He  was  the  first  one  who  established  the  rules 
of  measure,  and  regulated  the  division  of  land  into  paces 
and  acres,  in  order  to  prevent  disputes  and  poverty.  He 
made  one  tsing  consist  of  eight  families.  Within  the  limits 
of  one  tsing,  four  roads  were  opened,  the  eight  houses  were 
separated,  and  a  tsing  (well)  was  dug  in  the  center.  The 
principles  of  this  system  were  these:  first,  it  did  not 
waste  land,  because  there  was  only  one  well  for  all  eight 
families;  second,  it  saved  expense  for  each  single  fam- 
ily, because  they  had  a  well  in  common;  third,  it  unified 
their  customs;  fourth,  it  improved  their  productive  arts, 
because  they  could  imitate  one  another ;  fifth,  they  exchanged 
easily  their  commodities ;  sixth,  during  the  absence  of  some, 
others  guarded  for  them;  seventh,  when  they  went  out  and 
came  in,  they  took  care  for  one  another;  eighth,  they  intro- 
duced intermarriage;  ninth,  in  case  of  need,  they  lent 
wealth  to  one  another;  and  tenth,  in  time  of  sickness,  they 
cared  for  one  another.  Therefore,  their  feelings  were  har- 
monized without  quarrels  or  litigation;  and  their  wealth 
was  equalized  without  deceit  or  oppression. 

According  to  the  political  divisions,  one  tsing  was  also 
called  a  "  neighbor ;"  three  neighbors  made  up  one  "  friend- 
ship ;"  three  friendships,  one  "  ward ;"  five  wards,  one 
"town;"  ten  towns,  a  "center;"  ten  centers,  one  "multi- 
tude;" and  ten  multitudes,  one  "province."  By  these 
divisions,  the  tsing  was  the  starting  point,  because  the  settle- 
ment of  the  people  was  the  basis ;  and  when  it  came  to  the 
province,  the  statistics  were  complete.  Through  the  Hsia 
and  the  Yin  dynasties,  this  system  of  division  was  not 
changed.^  Therefore,  in  the  reign  of  Huang  Ti,  there  was 
already  the  form  of  tsing  tien,  that  is,  the  division  of  land, 
but  the  number  of  laws  had  not  been  completed. 

*  General  Research,  ch.  xii. 


THE  TSJXG  TIEN  SYSTEM  ^gg 

2.  The  Three  Dynasties 

During  the  Three  Dynasties,  Hsia,  Vin  and  Chou,  the 
tsing  ticn  system  was  developing  step  by  step.  According  to 
Mencius,  the  Hsia  dynasty  allotted  fifty  acres  to  one  man, 
and  he  paid  the  produce  of  five  acres  to  the  government  as 
a  tax;  the  Yin  dynasty  allotted  seventy  acres,  and  he  paid 
that  of  seven  acres;  the  Chou  dynasty  allotted  one  hundred 
acres,  and  he  paid  that  of  ten  acres.  Therefore  the  tax 
system  of  the  Three  Dynasties  was  really  a  tithe/ 

We  must  understand,  however,  that  the  Three  Dynasties 
did  not  change  the  size  of  the  field  as  from  the  allotment 
of  fifty  acres  to  that  of  seventy,  or  from  that  of  seventy  to 
that  of  one  hundred  acres.  The  difference  in  the  number  of 
acres  was  due  to  the  different  units  of  measurement  of  the 
Three  Dynasties.  The  form  of  field,  as  we  know,  was  very 
complicated,  and  it  would  have  been  difficult  as  well  as  un- 
necessary to  change  it.  There  is,  therefore,  every  reason 
to  suppose  that  in  each  of  the  Three  Dynasties  the  same 
amount  of  land  was  allotted  to  each  family  and  each  was 
required  to  pay  the  same  tax. 

During  the  Chou  dynasty,  the  tsing  ticn  system  was  com- 
pleted. According  to  the  Official  System  of  Chou,  the  dis- 
tribution of  land  was  according  to  a  definite  principle;  its 
fpiantity  should  be  in  accordance  with  its  quality.  In  the 
neighborhood  of  cities,  each  family  received  one  hundred 
acres  of  the  unchanged  land,  which  w:is  cultivated  every 
year;  or  two  hundred  acres  of  the  second  class  of  land, 
cultivated  every  other  year;  or  three  hundred  acres  of  the 
third  class  of  land,  cultivated  every  third  year.  But  in  the 
country,  there  was  a  more  favorable  law.  Of  the  superior 
land,  one  man.  together  with  his  wife,  received  a  home  of 
five  acres  in  the  town,  one  hundred  acres  of  land,  and  fifty 

'  Classics,  vol.  ii.  pp.  240-41. 


qoQ        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

acres  of  fallow  land  which  was  purposely  left  idle  for  the 
preparation  of  another  crop.  Of  the  ordinary  land,  one 
man  received  a  home,  one  hundred  acres  of  land,  and  one 
hundred  acres  of  fallow  land ;  and  of  the  inferior  land,  one 
man  received  his  home  and  one  hundred  acres  of  land 
together  with  two  hundred  acres  of  fallow  land.  If  any 
family  had  a  large  number,  the  "  supernumerary  male  "  re- 
ceived an  amount  of  land  as  follows :  of  the  superior  land, 
twelve  and  a  half  acres  of  fallow  land;  of  ordinary  land, 
twenty-five  acres;  of  inferior  land,  fifty  acres;  while  in  all 
three  grades,  he  received  twenty-five  acres  of  land  to  be 
cultivated.^  The  differences  between  the  law  which  was 
applied  to  the  neighborhood  of  cities  and  that  which  was  for 
the  country  were  these:  around  the  cities,  no  fallow  land 
was  given  as  an  addition  to  superior  land,  and  nothing  was 
distributed  to  the  supernumerary  males.  The  reason  the 
countrymen  were  shown  more  favor  was  because  the  gov- 
ernment gave  special  grace  to  those  people  who  were  far 
away  from  the  cities.  Moreover,  near  the  cities,  with  a 
large  population  and  a  limited  amount  of  land,  it  was  im- 
possible to  use  the  same  law  as  in  the  country.  And  the 
favorable  law  of  the  country  might  have  been  a  policy  of 
the  government  to  draw  the  population  from  the  cities. 
There  is  still  another  point :  as  the  economic  life  of  the  cities 
was  different  from  that  of  the  country,  the  people  of  the 
cities  did  not  need  so  much  land  as  those  in  the  country. 

For  the  distribution  of  land,  there  was  also  another  prin- 
ciple :  the  quality  of  land  was  in  accordance  with  the  size  of 
the  family.  To  a  large  family,  from  eight  persons  up  to 
ten,  superior  land  was  distributed;  to  an  ordinary  family, 
from  five  to  seven,  ordinary  land  was  distributed;  and  to  a 
small   family,    from   two   to   four,   inferior  land   was   dis- 

*  Canonical  Interpretation  of  the  Ts'ing  Dynasty,  vol.  liii,  ch.  i. 


THE  TSL\G  TIEN  SYSTEM  50I 

tributed.    For  each  grade  of  land,  there  was  a  sub-division ; 
and  altogether  there  were  nine  different  classes  of  land.^ 

II.    THE  TSING  TIEN  SYSTEM   OF  CONFUCIUS  ' 

Since  we  have  already  studied  the  form  of  ising  Hen  and 
its  history,  we  now  turn  to  the  details  which  are  described 
by  the  Confucians.  First,  we  take  up  the  tsi7ig  tien  itself, 
and  see  what  it  is.  According  to  Mencius,  a  square  mile 
forms  a  tsing,  and  it  contains  nine  hundred  acres.  The  cen- 
tral square  of  the  tsing  is  called  the  public  field :  and  the  sur- 
rounding eight  squares  are  called  private  fields  for  assign- 
ment to  the  eight  families.^  In  the  center  of  the  public  field, 
twenty  acres  are  taken  out  for  the  cottages  of  the  eight 
families,  each  having  a  share  of  two  acres  and  a  half.  The 
reniaining  eighty  acres  of  the  public  field  are  cultivated  in 
common  by  the  eight  families,  each  really  cultivatmg  ten 
acres.  Each  family  receives  one  hundred  acres  of  the 
private  field  from  the  public,  and  gives  its  labor  to  the  public 
for  the  cultivation  of  ten  acres  in  the  public  field;  thi>  is  the 
system  of  tithe. 

Since  a  tsijig  is  the  smallest  community  based  upon  com- 
mon economic  interest,  it  is  not  only  a  community  of  agri- 
culture, but  also  a  community  of  commerce.  As  the  ex- 
change of  wealth  is  very  small,  a  market-place  is  established 
in  every  tsing,  and   people  can  get  the  necessities  of  life 

•  Thc^e  rules  of  distribution  of  land  mentioned  in  these  two  para- 
graphs differ  somewhat  from  those  of  the  next  section.  As  that  sec 
tion  is  based  on  the  Spring  and  Autumn,  the  "Royal  Regulations/* 
and  Mencius,  it  gives  the  theories  of  Confucians;  the  description  in 
these  two  paragraphs  is  based  on  the  Official  Systetti  of  Chou  and  may 
be  assumed  to  correspond  with  the  actual  practice  under  the  Chou 
dynasty. 

'  A  complete  description  is  given  in  the  Annotation  of  Kung-yang. 
15th  year  of  Duke  Hsiian. 

•  Classics,  vol.  ii.  p.  245. 


302        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

very  easily.  Because  every  tsing  is  at  the  same  time  a 
market,  the  common  term  "  shih  tsing ''  comes  into  ex- 
istence; shih  means  market,  and  tsing  is  the  tsiitg  tien.  This 
term  is  still  used  for  the  commercial  district  of  the  great 
cities. 

To  secure  an  equal  distribution  of  the  land  thei"e  v^ere 
the  following  rules :  Generally,  five  persons  make  up  a 
family — that  is,  husband  and  w^ife,  together  with  parents 
and  children.  A  farmer's  family  receives  one  hundred 
acres  of  the  private  field,  live  acres  for  the  house  in  the  town, 
two  acres  and  a  half  for  the  cottage  in  the  field,  and  ten 
acres  of  the  public  field;  the  total  amount  is  one  hundred 
seventeen  and  a  half  acres.  If  the  family  has  more  than 
five  persons,  its  young  man  is  called  a  supernumerary  male, 
and  he  receives  twenty-five  acres  without  paying  taxes. 

The  family  of  the  student,  artisan,  and  merchant  also 
receives  a  share  of  land,  but  its  amount  is  diminished. 
When  these  come  to  the  age  of  maturity,  they  receive  indi- 
vidually half  the  amount  of  the  farmer — fifty  acres;  and 
their  supernumerary  male  receives  one-fifth  the  amount 
of  the  farmer — twenty  acres. ^ 

The  age  of  maturity  is  twenty,  and  the  people  receive  a 
full  share  of  land,  one  hundred  acres,  at  that  time.  But  the 
land  can  neither  be  handed  down  to  descendants,  nor  sold  to 
others.  It  must  be  returned  to  the  government  at  the  age 
of  sixty.  From  sixteen  to  twenty,  youths  are  called  super- 
numerary males,  and  receive  a  quarter  of  the  full  share. 
Among  all  the  people,  those  above  seventy  years  of  age  are 
supported  by  the  state;  those  below  ten  are  brought  up  by 
it ;  and  those  above  eleven  are  compelled  to  practise  by  it.^ 

The  land  is  divided  into  three  grades,  according  to  its 

^  History  of  Han,  ch.  xxiv.  Annotation  of  the  Official  System  of 
Chou,  ch.  xiii. 

'  History  of  Han,  ch.  xxiv. 


THE  TSIXG  TIEN  SYSTEM 


503 


quality.  The  superior  land  is  cultivated  every  year;  the 
ordinary  land,  every  two  years ;  and  the  inferior  land,  every 
three  years.  Each  family  receives  one  hundred  acres  of 
superior  land,  or  two  hundred  acres  of  ordinary  land,  or 
three  hundred  acres  of  inferior  land.  Every  three  years 
the  land  and  the  residence  of  the  various  families  are  inter- 
changed. In  this  way  no  one  can  always  enjoy  rich  land, 
or  suffer  on  the  poor  land.  The  rules  described  above  are 
applied  to  the  plain  only.  Among  the  mountain,  hill,  marsh, 
and  salt  lands,  the  distribution  differs  in  quantity  according 
to  quality.' 

According  to  Mencius,  from  the  highest  officers  down 
to  the  lowest,  each  one  must  have  his  holy  field,  consisting 
of  fifty  acres.  But  according  to  Ho  Hsiu,  the  local  officers, 
such  as  the  patriarchs  and  the  justice,  receive  two  shares 
of  land,  that  is,  two  hundred  acres.  These  statements  are 
both  correct.  For  Mencius  refers  to  the  government  offi- 
cers who  receive  salary:  and  the  holy  field  is  only  for  the 
purpose  of  religious  worship.  But  Ho  Hsiu  lefers  to  the 
local  officers,  who  are  elected  by  the  people  and  receive  no 
salary. 

Third,  we  shall  see  how  the  works  of  the  people  arc  regu- 
lated. When  they  plant  grain,  they  are  not  allowed  to  plant 
a  single  kind.  Generally,  they  plant  five  kinds — rice,  millet, 
panicled  millet,  wheat  and  pulse — in  order  to  avoid  bad 
crops.  Within  the  field,  no  tree  is  allowed  to  be  planted, 
lest  it  should  give  trouble  to  the  grain.  Around  their  cot- 
tages which  are  in  the  center  of  the  public  field,  they  plant 
mulberry  trees;  in  their  small  gardens,  different  vegetables; 
and  in  the  boundaries  of  their  cottages,  different  fruits. 
Each  family  keeps  five  hens  and  two  sows.  The  work  of 
cultivating  silkworms  and  weaving  is  the  special  profession 
of  women. 

^History  of  flan.  ch.  xxiv. 


504 


THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 


During  spring,  summer  and  autumn  the  people  all  work 
in  the  field.  In  the  morning  and  evening,  the  patriarch  and 
the  justice,  as  overseers,  sit  in  the  houses  which  are  in  the 
two  sides  of  the  gate  of  the  village.  Those  who  go  out  too 
late  are  not  allowed  to  go  out,  and  those  who  do  not  bring 
some  fuel  back  are  not  allowed  to  come  in.  When  they 
bring  fuel,  they  help  each  other  according  to  the  weight  of 
their  burdens,  and  assume  the  entire  load  of  the  grey- 
haired  men.  The  patriarch  and  the  justice  can  go  back  to 
their  home  only  after  the  people  have  all  gone  out,  or  after 
they  have  all  come  in. 

Besides  the  cottages  in  the  field,  the  people  have  homes  in 
the  town,  which  is  not  far  away  from  the  field.  A  town  cov- 
ers several  villages,  and  a  village  is  made  up  of  eighty  fami- 
lies which  come  from  ten  tsing;  while  eight  families  occupy 
one  street  together.  Around  their  homes,  each  occupying 
five  acres,  the  space  beneath  the  walls  is  planted  with  mul- 
berry trees,  with  which  the  women  nourish  silkworms.^ 
After  the  harvest,  they  all  live  in  town.  Then  the  justice 
hurries  them  to  make  the  cloth.  In  the  evening,  men  and 
women  work  together  in  the  same  street,  spinning  until 
midnight;  hence,  the  work  of  women  amounts  to  forty-five 
days'  labor  in  the  length  of  one  month.  This  work  com- 
mences in  the  tenth  month,  and  ends  in  the  first.  They 
must  work  together  to  save  light  and  heat,  to  disseminate 
the  arts;  and  to  make  uniform  their  customs.  All  these 
rules  tend  to  make  their  productive  power  alike,  in  order  to 
equalize  their  wealth.  In  fact,  the  tsing  tien  system  is  a 
peculiar  form  of  co-operative  production. 

Fourth,  we  shall  notice  that  the  tsing  tien  system  is  as  in- 
dividualistic as  socialistic.  Each  man  has  his  own  land,  his 
own  cottage,  his  own  home,  his  own  mulberry  trees,  vege- 

^  Classics,  vol.  ii,  p.  461. 


THE  TSJ.\Lj  TIEK  SYSTEM 


505 


tables,  fruits  and  animals,  and  all  other  properties  which 
belong  to  him.  He  reaps  what  he  has  produced  in  the  field, 
varying  from  the  amount  which  can  support  nine  persons 
to  that  which  can  support  only  five.  Moreover,  from  sixty 
to  sixty-nine  years  of  age,  after  he  has  returned  the  land 
to  the  public,  he  is  supported,  either  by  his  children  or  by  his 
accumulations.  Therefore,  from  eleven  up  to  seventy,  he 
depends  entirely  upon  his  own.    This  is  also  individurdism. 

In  conclusion,  the  tsing  tien  system  is  a  group  system 
based  on  territory.  In  the  held,  one  tsing  is  the  unit  of  divi- 
sion, and  consists  of  eight  families ;  in  the  town,  one  village 
is  the  unit,  and  consists  of  eighty  families.  Regardless  of 
any  blood-relationship,  the  only  basis  for  the  group  system 
is  territory.  Therefore,  the  tsing  tien  system  is  not  an  eth- 
nical society,  but  an  economic,  ethical,  social,  political  and 
military  society.  From  the  foregoing  description,  every- 
one will  see  that  it  is  an  economic  society.  To  prove  that 
it  is  an  ethical  society,  we  may  quote  from  Mencius,  as 
follows : 

When  the  land  of  the  district  is  divided  into  different  tsing, 
the  people  live  together  according  to  the  same  tsing.  There- 
fore, they  render  all  friendly  offices  to  one  another  in  their 
going  out  and  coming  in,  aid  one  another  in  keeping  watch  and 
ward,  and  sustain  one  another  in  sickness.  Thus  the  people 
are  brought  to  live  in  affection  and  harmony.' 

Since  every  village  has  a  school  house  which  serves  also 
as  an  ethical  church  and  a  meeting  house  for  social  and 
political  activities,  it  is  a  social  and  political  society.  The 
farmers  are  at  the  same  time  the  soldiers,  and  ten  tsing 
combine  together  to  supply  one  chariot  ai^  the  militaiy  duty. 
In  time  of  peace,  they  are  co-workers  at  home,  and  in  time 

^Classics,  vol.  ii.  p.  -'45. 


5o6        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

of  war,  they  are  co-fighters  in  the  battle-field.  Therefore, 
tsing  lien  is  a  military  society.  In  short,  the  tsing  tien  is 
the  basis  of  everything.  As  we  describe  many  features  of 
it  in  other  places,  we  do  not  mention  them  here. 

III.  HISTORY  OF  THE  DESTRUCTION  OF  TSING  TIEN 

Toward  the  end  of  the  Chou  dynasty,  in  202  A.  K.  (350 
B.  C),  the  state  of  Ch'in  destroyed  the  tsing  tien  system. 
It  was  the  policy  of  Shang  Yang,  minister  of  Ch'in.  He 
thought  that  in  the  three  neighboring  states  the  people  were 
poor  and  the  land  was  not  suf^cient  for  them;  and  that  in 
his  own  state  the  people  were  few  and  the  land  was  more 
than  they  needed.  Hence  the  land  of  Ch^in  was  not  thor- 
oughly cultivated,  and  the  productive  power  of  the  soil  was 
not  fully  utilized.  Therefore,  he  lured  in  the  people  of  the 
three  neighboring  states,  with  a  special  preparation  of  good 
farms  and  homes  for  them,  and  with  an  exemption  of  mili- 
tary duties  for  three  generations;  the  only  thing  for  them 
to  do  was  the  agricultural  work  at  home.  Then  the  native 
people  undertook  the  charge  of  expeditions  abroad.  He  de- 
stroyed the  form  of  tsing  tien  which  was  created  by  the  an- 
cients, and  opened  the  different  roads  and  boundaries  along 
the  field  for  extensive  cultivation.  The  people  were  allowed 
to  take  as  much  land  as  they  wanted.  The  result  of  this 
policy  was  that  within  a  few  years,  the  state  was  rich  and 
strong,  and  gained  power  for  the  consolidation  of  the  whole 
empire. 

This  new  law  inaugurated  a  revolution  in  the  economic 
history  of  China.  It  was  the  first  time  the  people  were 
given  private  ownership  of  land.  From  that  time  on,  the 
land  was  not  in  the  hands  of  the  government,  and  the  public 
could  never  control  the  wealth  of  the  community. 

In  336  A.  K.  (216  B.  C),  the  First  Emperor  of  the  Ch'in 
dynasty  decreed  that  the  people  should  themselves  tell  the 


THE  TSING  TIEN  SYSTEM 


507 


amount  of  their  land,  in  order  to  regulate  the  land  tax. 
Since  that  year,  throughout  the  whole  empire,  private 
ownership  of  land  has  prevailed,  and  everyone  has  been  per- 
mitted to  sell  or  buy  land. 

IV.    HISTORY    OF    THE    UNSUCCESSFUL    ATTEMPTS    TO    REVIVE 
THE  TSING  TIEN  SYSTEM 

I.  Limitation  Policy 

After  the  tsing  tien  system  was  destroyed,  land  was  an 
object  of  sale  and  purchase.  Therefore,  the  rich  had  an 
unlimited  portion  of  land,  and  the  poor  had  not  even  a  single 
clod.  In  the  reign  of  Han  Wu  Ti  (about  432  A.  K.  or 
120  B.  C. ),  Tung  Chung-shu  was  the  first  one  to  advocate 
the  limitation  of  land-ownership.  But  his  proposal  was  not 
carried  out. 

During  the  reign  of  Han  Ch'eng  Ti  (520-545,  or  32-7 
B.  C. ) ,  Chang  Yii,  the  minister,  owned  forty  thousand  acres 
of  the  best  land,  and  others  who  monopolized  the  land 
owned  large  tracts.  In  consequence  the  people  were  in  a 
very  bad  condition.  When  Ai  Ti  came  to  the  throne  (545, 
or  7  B.  C. ),  Shih  Tan,  the  minister,  proposed  that  there 
should  be  a  limitation  of  property.  Then  a  law  was  made 
which  provided  that  all  the  princes,  the  marquises,  the  prin- 
cesses, the  landless  marquises,  the  officials  and  the  people 
should  not  own  land  beyond  the  limit  of  three  thousand 
acres;  and  that  the  limit  of  slaves  was  tvvro  hundred  persons 
for  the  princes,  one  hundred  for  the  marquises  and  the  prin- 
cesses, and  thirty  for  the  landless  marquises,  the  officials  and 
the  people.  After  a  period  of  three  years,  this  law  was  to 
take  effect,  and  any  offender  against  it  should  be  punished 
by  forfeiture.  Then  the  price  of  land  and  slaves  fell.  But 
the  favorites  of  the  court  did  not  like  the  law.  and  it  was 
not  enforced. 


^08        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

2.  Confiscation  Policy 
During  the  time  of  Wang  Mang,  the  poor  had  no  land, 
and  only  borrowed  it  from  the  rich;  hence  they  paid  half 
of  their  produce  to  the  rich.  Therefore,  the  rich  were 
vicious  because  of  their  haughtiness,  and  the  poor  were 
wicked  because  of  their  poverty;  they  both  fell  into  guilt. 
In  560  (9  A.  D.),  Wang  Mang  decreed  that  the  land  of  the 
whole  empire  should  be  called  ''  imperial  land,"  and  slaves 
should  be  called  "  private  dependents;"  neither  could  be  sold 
or  purchased.  Those  families  which  had  fewer  than  eight 
male  members,  but  had  land  amounting  to  more  than  one 
tsing,  should  distribute  the  surplus  of  land  to  their  rela- 
tives and  townsmen.  The  offender  should  be  punished  by 
death.  But  the  law  was  not  justly  fixed,  and  the  officials 
took  advantage  of  that  fact  to  make  fraudulent  gains.  Hence 
the  whole  empire  was  disturbed,  and  a  great  number  of  peo- 
ple fell  into  punishment.  In  563,  as  Wang  Mang  understood 
the  bad  feelings  of  the  people,  he  decreed  that  the  ''  imperial 
land  "  and  the  ''  private  dependents  "  could  be  sold  without 
prohibition.  Since  all  his  policies  were  unwise,  he  did  not 
succeed  in  anything. 

V.    HISTORY  OF  THE  REVIVAL  OF  TSING  TIEN 

I.  The  Tsin  Dynasty 
In  the  decay  of  the  Latter  Han  dynasty  and  throughout 
the  period  of  the  Three  Kingdoms  (735-831,  or  184-280 
A.  D.),  the  whole  empire  was  disturbed  by  warfare.  In 
831,  the  year  that  Tsin  Wu  Ti  reunited  the  empire,  the  total 
population  numbered  only  16,163,863.  Though  these  fig- 
ures cannot  be  exact,  the  population  was  certainly  greatly 
reduced  since  the  warfare  had  continued  about  one  century. 
Because  the  great  empire  had  only  a  sparse  population,  be- 
cause land-ownership  was  either  destroyed  or  changed, 
and  because  the  land  practically  belonged  to  the  govern- 


THE  TSL\G  TIES  SYSTEM 


509 


ment,  \Vu  Ti  was  enabled  to  distribute  the  land  to  the 
people.  Hence,  from  this  time  (831,  or  280  A.  D.)  to 
the  Tang  dynasty  ( 1264,  ^^  7^2)  *^-  ^^-^  ^he  tsing  tien  sys- 
tem of  Confucius  was  practically  carried  into  effect,  al- 
though there  was  an  interruption  of  about  one  century  and 
a  half. 

(a)  Classification  of  People  by  Ages 

According  to  the  law  of  831  (280  A.  D.),  the  men  and 
women  were  classified  by  ages.  The  class  from  sixteen  to 
sixty  was  called  regular  adult;  from  thirteen  to  fifteen,  and 
from  sixty-one  to  sixty-five,  secondary  adult;  and  from 
twelve  down,  and  from  sixty-six  up,  young  and  old,  who 
were  exempted  from  labor.  This  distinction  among  differ- 
ent ages  embodied  the  same  principle  as  modern  labor  laws ; 
it  gave  more  work  to  the  regular  adult,  less  to  the  secondary 
adult,  and  none  to  the  old  and  young.  As  modern  labor 
laws  give  special  protection  only  to  children  and  women, 
the  law  of  the  Tsin  dynasty  was  more  complete,  because  it 
gave  protection  to  the  old  as  well. 

(b)  Equal  Distribution  of  Land 

Among  all  the  people,  each  man  was  given  seventy  acres 
of  land,  and  each  woman  thirty  acres.  Besifles  these,  for 
the  regular  adults,  the  man  was  given  fifty  acres  of  taxerl 
land  which  was  retpiired  to  pay  the  land  tax,  the  woman 
twenty  acres;  for  the  secondary  adults,  the  man  was  given 
twenty-five  acres  of  taxed  land,  and  the  woman  was  given 
nothing. 

By  this  law.  from  sixteen  to  sixty  years  of  age,  every  man 
got  one  hundred  twenty  acres  of  land,  and  every  woman  fifty 
acres.  From  thirteen  to  fifteen,  and  fro'.n  sixty-one  to  sixty- 
five,  every  man  got  ninety-five  acres  of  land,  and  every 
woman    thirty   acres.      This   law   gave   real    rights   to   the 


^10        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

women,  who  could  become  economically  independent  of  the 
men.  The  reason  women  got  less  land  than  men  was  be- 
cause they  could  not  work  so  much  as  men.  The  law  did 
not  favor  women  less,  but  it  pitied  them  more. 

The  historians  tell  us  that  in  the  reign  of  Wu  Ti  there 
was  universal  peace;  taxation  was  equcil,  and  everyone  en- 
joyed his  work.  But  no  fuller  details  of  the  distribution  of 
land  are  given.^  Unfortunately,  the  successor  of  Wu  Ti 
was  most  stupid,  and  the  whole  empire  fell  into  disorder. 
How  long  this  law  remained  in  force  is  unknown,  but  it 
must  have  been  about  thirty  years  at  the  least. 

2.  The  Northern  Wei  Dynasty 
After  the  reign  of  Tsin  Wu  Ti,  first  came  the  Wars  of 
the  Eight  Princes  (851-857,  or  300-306  A.  D.),  and  next, 
the  Rebellions  of  the  Five  Barbarians  (855-990,  or  304-439 
A.  D. ) .  As  a  great  part  of  the  population  was  swept  away, 
and  also  with  them  ownership  of  land,  the  Northe^'n  Wei 
dynasty  was  enabled  to  regulate  again  the  distribution  of 
land.  Moreover,  although  the  system  of  Tsin  Wu  Ti  had 
been  destroyed,  something  must  have  remained.  In  1028 
(477  A.  D.),  Hsiao-wen  Ti  decreed  that  one  man  should 
cultivate  forty  acres  of  land,  and  a  young  man  twenty 
acres.  This  shows  that  there  must  have  been  a  remainder 
of  the  system  of  Tsin,  otherwise  how  could  one  man  havr 
forty  acres  for  cultivation?  At  that  time,  the  advocate  of 
the  equalization  of  land  was  Li  An-shih  (994-1044)  ;  bi? 
proposal  was  approved  by  the  emperor,  and  carried  out  into 
actual  law. 

(a)  The  Opened  Land 
In  1036  (485  A.  D.),  Hsiao-wen  Ti  gave  a  decree  for 
the  equal   distribution  of  land.     From  the  age  of   fifteen 

*  History  of  Tsin,  ch.  xxvi. 


THE  TSLXG  TIEN  SYSTEM  311 

years  up,  each  man  received  forty  acres  of  the  opened  land 
in  which  nothing  had  been  planted,  and  each  woman  re- 
ceived twenty  acres ;  the  slave  was  treated  like  the  free 
citizen.  For  each  ox  or  cow,  there  was  given  a  share  of 
thirty  acres,  the  limitation  in  number  being  four  oxen.  The 
poor  land  which  was  assigned  for  the  oxen  was  generally 
given  in  double  amount;  if  the  land  could  be  cultivated  only 
the  fourth  year,  it  was  given  in  quadruple  amount ;  this  was 
for  cultivation  by  the  oxen,  and  for  a  convenient  way  of 
distributing  land.  Those  people  who  had  reached  the  tax- 
able age  received  land,  and  those  who  were  old  enough  to 
be  exempted  from  taxation,  or  who  died,  returned  it. 

The  opened  land  was  called  the  regular  land,  that  on 
which  the  law  of  distribution  of  land  was  based.  It  was  the 
most  important  point  by  which  the  equalization  of  land 
was  carried  out.  After  the  destruction  of  tsing  ticn,  the 
land  had  been  under  private  ownership;  if  the  government 
had  taken  it  from  the  rich  to  give  it  to  the  poor,  it  would 
have  caused  great  confusion  and  discontent.  Now,  in  the 
Northern  Wei  dynasty,  the  land  which  was  subject  to 
the  law  of  acceptation  and  return  was  the  opened  land  on 
which  nothing  had  been  planted.  The  opened  land  might 
have  been  free  land  without  private  ownership,  and  be- 
longed practically  to  the  government. 

(b)  The  Flax  Land 

There  was  a  kind  of  land  called  flax  land,  on  which  flax 
was  planted.  When  a  man  reached  the  taxable  age,  he  was 
given  ten  acres  of  flax  land ;  a  woman  was  given  five  acres ; 
the  slave  was  treated  like  the  free  citizen.  This  land,  too, 
was  subject  to  the  law  of  acceptation  and  return. 

On  all  the  lands  which  were  to  be  returned,  no  mulberry, 
nor  elm,  nor  date,  nor  any  fruit  was  allowed  to  be  planted. 
The  offender  should  be  punished  as  a  violator  of  the  consti- 


512        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

tution.     After  these  lands  were  returned,  they  were  dis- 
tributed again. 

(b)  The  Mulberry  Land 
There  was  another  kind   of  land  called  mulberry  land. 
When  a  man  first  received  it,  he  had  a  share  of  twenty 
acres.     It  was  not  subject  to  the  law  of  acceptation  and 
return,  and  it  was  classified  as  the  double  land;  that  is,  the 
regular  land  was  the  principal  share  of  each  person,  and  the 
double  land  was  the  auxiliary.     If  the  amount  of  mulberry 
land  was  more  than  a  man's  share,  it  should  not  be  counted 
as  that  of  opened  land ;  but  if  it  was  less  than  his  share,  he 
should  take  the  opened  land  to  fill  up  the  amount  of  double 
land.     This  means  that  private  land  should  not  be  substi- 
tuted for  public  land,  but  that  public  land  should  be  substi- 
tuted for  private  land.     The  recipient  was  required  to  plant 
fifty  mulberry  trees,  five  date  trees,  and  three  elms.     In  the 
non-mulberry   land,   a  man   received   one  acre;   he  should 
plant  here  also  elms  and  dates.     The  slave  was  treated  like 
the  free  citizen.     Within  the  limit  of  three  years,  the  plan- 
tation should  be  finished ;  if  it  had  not  been  finished,  the  un- 
finished part  should  be  taken  away.     In  the  mulberry  land, 
one  was  allowed  to  plant  more  mulberry  trees  and  elms,  or 
other  kinds  of  fruit.     All  the  mulberry  land  should  be  her- 
editary property;  when  the  owner  died,  his  land  did  not 
need  to  be  returned.    The  distribution  of  mulberry  land  was 
in  accordance  with  the  then  existing  population  only;  he  who 
held  more  of  it  than  his  share  had  no  acceptation  nor  return, 
but  he  who  held  less  of  it  than  his  share  should  accept  a  full 
amount  and  plant  something  according  to  the  law.     If  he 
had  more,  he  was  allowed  to  sell  the  surplus ;  if  he  had  less, 
he  was  allowed  to  buy  it ;  but  no  one  should  sell  his  share, 
or  buy  more  than  the  amount  of  his  share. 

The  mulberry  land  was  the  private  property  on  which  the 
owner  planted  mulberries  or  elms.     Under  the  law  of  the 


THE  TSIXG  TIEN  SYSTEM 


513 


Northern  Wei  dynasty,  which  took  away  house  and  mul- 
berry land  from  those  people  only  who  were  exiled  to  dis- 
tant regions,  or  who  had  no  descendants,  the  private  prop- 
erty of  the  people  in  general  was  not  touched.  Hence,  this 
law  gave  freedom  of  sale  and  purchase  to  the  people  in 
order  to  equalize  their  private  property.  There  was  a 
universal  standard  for  such  equalization,  namely,  twenty 
acres  of  the  mulberry  land  as  the  share  of  one  man.  Al- 
though he  who  had  more  than  that  amount  was  allowed  to 
retain  it.  no  one  was  allowed  to  sell  his  share,  nor  to  buy 
more  than  his  share.  It  was  a  convenient  way  to  equalize 
private  land. 

(d)  Privileges  for  the  Weak  People 

If  the  members  of  a  family  were  all  aged  persons,  chil- 
dren, and  sick  persons,  who  did  not  accept  any  land,  a  half 
share  of  the  land  of  one  man  was  given  to  each  sick  per- 
son and  to  each  child  over  eleven  years  of  age.  The  aged 
man  over  seventy  years  was  not  required  to  return  his  land. 
The  widow  who  did  not  marry  again,  although  she  was 
exempted  from  taxes,  was  given  the  same  share  of  land  as 
the  taxed  woman,  twenty  acres  of  the  opened  land. 

(e)  Adjustment  hetiveen  Land  and  Population 

In  sparsely-populated  places,  the  government  leased  the 
land  to  the  people  as  far  as  possible.  When  any  newcomer 
came  in,  land  was  distributed  to  him  according  to  the 
general  law.  In  densely-populated  places,  if  a  man  who 
was  to  receive  a  new  share  of  land  on  account  of  the  in- 
crease in  the  members  of  his  family,  did  not  wish  to  move, 
the  mulberry  land  of  his  family  was  taken  into  account  as 
the  share  of  the  regular  land ;  that  is,  taking  his  private  land 
to  fill  the  amount  of  public  land  which  he  should  receive. 
If  it  was  still  not  enough,  he  was  not  given  the  double  land 


-14        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

in  addition ;  that  is,  he  had  only  the  amount  of  regular  land. 
If  it  was  still  not  enough,  the  shares  of  the  members  of  his 
family  should  be  reduced;  that  is,  they  should  not  get  the 
full  amount  of  the  regular  land.  Those  places  where  there 
were  no  mulberries  were  regulated  by  this  law.  Anyone 
who  wished  to  move  was  allowed  to  settle  in  any  place  where 
land  was  plentiful;  no  discrimination  was  made  against 
him  who  came  from  a  different  province  or  district.  But, 
if  he  simply  wished  to  escape  from  a  place  where  there  was 
difficulty,  and  to  come  to  a  place  where  there  was  ease, 
solely  for  the  sake  of  his  own  advantage,  it  was  not  al- 
lowed. In  those  places  where  there  was  enough  land,  he 
was  not  allowed  to  move  without  reason. 

For  all  the  new  settlers,  one  acre  was  given  to  every 
three  persons  for  a  home,  and  this  amount  was  given  to 
every  five  slaves  also.  From  the  age  of  fifteen  up,  each 
man  or  woman  was  required  to  plant  on  his  share  of  the 
land  vegetables  covering  one-fifth  of  an  acre. 

(f)  Miscellaneous  Rules  for  Distributing  Land  , 
All  the  acceptation  and  return  of  land  took  place  in  the 
first  month.  If  anyone  died  after  having  accepted  land,  or 
sold  or  purchased  slaves  and  oxen,  the  acceptation  and  re- 
turn of  land  should  take  place  in  the  first  month  of  the  fol- 
lowing year. 

For  the  share  of  one  person,  the  regular  land  and  the 
double  land  should  be  distinguished.  The  one  should  not 
be  confounded  with  the  other. 

When  a  family  increased  its  members,  it  should  receive 
a  new  share  of  land,  taken  from  its  neighborhood.  When 
two  families  were  to  receive  land  at  the  same  time,  and  they 
were  both  near  to  that  land,  it  should  be  given  to  the  poor 
family  first  and  then  to  the  rich.  This  law  was  also  applied 
to  the  double  land. 


THE  TSIXG  TIEN  SYSTEM 


515 


If  any  were  exiled  to  a  distant  place,  or  had  no  descend- 
ants so  that  the  family  was  extinguished,  all  their  houses 
and  mulberry  lands  should  become  public  land,  in  order 
to  be  distributed.  In  the  order  of  distributing  them,  their 
relatives  stood  first;  and  before  these  lands  were  distributed, 
they  should  be  loaned  to  the  relatives. 

When  the  officials  took  office,  public  land  located  near 
to  their  office  was  given  to  them.  The  governor  was  given 
one  thousand  five  hundred  acres;  the  prefect,  one  thousand 
acres ;  each  of  the  different  sub-prefects,  eight  hundred 
acres;  and  the  district  magistrate  and  the  assistant  sub- 
prefect,  six  hundred  acres.  When  they  left  their  offices, 
they  were  required  to  transfer  the  public  land  to  their  suc- 
cessors. If  they  sold  it,  they  were  punished  according  to 
the  established  law. 

(g)   Criticism  of  the  Law  of  the  Nortliern  Wei  Dynasty 

In  Chinese  economic  history,  for  the  society  as  a  whole, 
the  equalization  of  land  by  the  Northern  Wei  dynasty  is 
next  in  importance  only  to  the  tsi}ig  ticn  system.  The 
good  points  of  the  law  have  been  stated  above;  we  should 
now  criticize  its  bad  points.  In  the  first  place,  slaves 
had  their  share  of  land.  In  the  opened  land,  the  flax  land 
and  the  mulberry  land,  slaves  were  treated  as  citizens;  and 
among  the  new  settlers,  five  slaves  were  equal  to  three  citi- 
zens. So  far  as  they  were  dependent  and  could  be  sold  and 
bought  as  property,  the  share  of  the  slaves  benefited  only 
the  slave-holder.  In  the  second  place,  for  each  ox  or  cow, 
a  share  of  thirty  acres  of  opened  land  was  assigned.  Though 
there  was  a  limitation  to  four  oxen,  this  still  gave  the  ox- 
owner  a  special  benefit.  From  these  two  points,  we  may 
sum  the  matter  up  in  a  word — this  law  was  especially  favor- 
able to  the  capitalist.  Hence  it  diametrically  opposed  the 
fundamental   principle  of   the  equalization  of  land.      But, 


5i6        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

as  this  law  was  good  in  general,  this  defect  should  not 
be  unduly  emphasized. 

According  to  the  taxation  system  of  the  Northern  Wei 
dynasty,  a  husband  and  wife  should  pay  one  roll  of  silk 
and  two  bushels  of  grain  as  the  direct  tax,  and  this  amount 
was  the  standard.  Every  four  unmarried  citizens  above 
thirteen  years  of  age,  every  eight  slaves,  when  the  male 
slaves  could  cultivate  land  or  the  female  slaves  could  do  spin- 
ning, and  every  twenty  cultivating  oxen  were  required  to 
pay  this  amount.  Probably  the  law-maker  thought  that 
since  slaves  and  oxen  paid  a  tax  they  should  have  the  right 
to  receive  land. 

The  law  of  the  Northern  Wei  dynasty  was  most  im- 
portant,^ because  it  was  the  model  of  the  Northern  Ch'i,  the 
Northern  Chou,  the  Sui  and  the  Tang  dynasties. 

3.  The  Northern  CWi  Dynasty 

In  the  Northern  Ch'i  dynasty,  the  distribution  of  land 
took  place  in  the  tenth  month  of  every  year.  The  land 
was  not  allowed  to  be  sold  nor  exchanged.  In  11 15  (564 
A.  D.),  Wu  Ch'eng  Ti  made  a  law  providing  that  every 
man  should  receive  land  and  pay  taxes  at  eighteen  years  of 
age;  should  be  enrolled  as  a  soldier  at  twenty;  should  be 
freed  from  any  forced  labor  at  sixty ;  and  at  sixty-six,  should 
return  the  land  and  should  be  exempted  from  taxes.  Each 
man  should  receive  eighty  acres  of  opened  land ;  each  woman 
forty  acres;  and  the  slave  was  treated  like  the  free  citizen. 

The  limitation  of  slaves  was:  three  hundred  slaves  for 
the  princes  of  close  relation ;  two  hundred  for  the  successive 
princes;  one  hundred  and  fifty  for  the  successive  princes 
from  the  second  rank  down,  and  the  princes  outside  the 
imperial  family ;  one  hundred  for  the  officials  from  the  third 

^  History  of  Wei,  ch.  ex. 


THE  TSING  TIEN  SYSTEM  317 

rank  up,  and  the  imperial  clansmen;  eighty  for  the  officials 
from  the  seventh  rank  up;  and  sixty  for  the  officials  from 
the  eighth  rank  down,  and  the  common  people.  No  land 
was  given  to  the  slaves  who  stood  beyond  this  limit.  For 
each  ox.  sixty  acres  were  given;  and  the  limit  was  four 
oxen. 

Every  man  received  twenty  acres  of  mulberry  land  as 
perpetual  property,  which  was  not  subject  to  the  law  of 
acceptation  and  return.  When  the  land  was  not  fitted  to 
mulberry,  flax  land  was  given,  to  which  the  law  of  mul- 
berry land  was  applied.^ 

(a)  Criticism  of  the  Slavery  of  the  NortJiern  Dynasties 
There  was  slavery  in  the  Northern  Dynasties  because  the 
rulers  of  those  dynasties  came  from  the  northern  barbarian 
tribes.  As  they  were  accustomed  to  slavery,  when  they  ruled 
a  great  part  of  China,  they  made  it  a  positive  institution. 
When  they  conquered  a  place,  they  took  away  both  noblemen 
and  commons,  and  made  them  slaves.  Moreover,  at  that 
time,  as  the  warfare  continued,  the  condition  of  the  people 
was  very  bad,  so  they  would  sell  themselves  as  slaves.  But, 
as  the  general  civilization  of  the  Northern  Dynasties  was 
lower  than  that  of  the  Southern  Dynasties,  why  should  the 
Northern  have  shown  greater  concern  for  the  equalization  of 
land?  It  was  because  this  system  was  established  by  Hsiao- 
wen  Ti  of  the  Northern  Wei  rlynasty.  During  his  reign 
(1022- 1 050,  or  471-499  A.  D.),  when  the  power  of  the 
Wei  dynasty  was  at  its  height,  and  there  was  a  period  of 
peace,  he  was  especially  fond  of  Confucianism,  so  that  this 
system  was  formed.  He  moved  his  capital  from  northern 
China  to  central  China  at  the  old  capital  of  the  Chou  and 
the  Han  dynasties;  he  forbade  the  wearing  of  barbarian  cos- 
tumes; and  he  changed  nearly  all  the  barbarian  systems,  and 

'  History  of  Sui,  ch.  xxiv. 


5l8        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

adopted  the  Chinese  civihzation — he  changed  even  the  bar- 
barian names  for  the  Chinese  names.  Therefore,  the  equali- 
zation of  land  in  the  Northern  Wei  dynasty  was  the  product 
of  Confucianism,  and  the  revival  of  the  tsing  Hen  system. 
Slavery  was  an  institution  of  the  Northern  Dynasties,  and 
was  so  firmly  established  that  it  was  not  changed  even  dur- 
ing the  reign  of  Hsiao-wen  Ti. 

4.  The  Northern  Chou  Dynasty 
In  the  Northern  Chou  dynasty,  Wen  Ti  (1085-1107,  or 
534-556  A.  D.)  established  the  bureau  of  equality  to  deal 
with  land.  To  a  family  of  more  than  ten  persons,  five  acres 
were  given  for  their  home;  above  seven,  four  acres,  and 
above  five,  three  acres.  To  a  married  man,  one  hundred 
and  forty  acres  were  distributed;  to  a  single  man,  one  hun- 
dred acres. ^  This  law  implied  that  a  married  woman  had 
a  real  share  of  forty  acres. 

5.  The  Sui  Dynasty 

After  the  Northern  Wei  dynasty  was  divided  up  into  the 
Northern  Ch'i  and  the  Northern  Chou  dynasties,  the  North- 
ern Chou  conquered  the  Northern  Ch*i,  and  the  Sui  dynasty 
succeeded  the  Northern  Chou.  Therefore,  their  laws  were 
similar.  In  distributing  the  opened  land  and  the  perpetual 
property,  Sui  conformed  to  the  law  of  the  Northern  Ch'i. 
The  people  were  also  required  to  plant  mulberries,  elms 
and  dates.  On  the  average,  every  three  citizens  received 
one  acre  for  their  home  and  garden ;  and  every  five  slaves  re- 
ceived the  same  amount. 

From  the  princes  to  the  military  commanders,  all  were 
given  land  for  their  perpetual  property,  its  amount  varying 
from  forty  acres  to  ten  thousand  acres.  To  the  officials  of 
the  capital,  the  official  land  was  given  according  to  rank. 

^  History  of  Sui,  ch.  xxiv. 


THE  TSING  TIEN  SYSTEM  519 

To  those  of  the  first  rank  was  given  the  amount  of  live 
hundred  acres ;  to  those  of  the  ninth  rank,  the  last,  one  hun- 
dred acres;  the  difference  between  any  higher  rank  and  its 
next  was  fifty  acres. ^ 

6.  The  Tang  Dynasty 

There  was  a  goklen  age  in  the  Tang  dynasty,  and  it  came 
from  the  equahzation  of  land.  In  1175  (624  A.  D.),  a  law 
provided  that  to  every  man  above  eighteen  years  of  age,  one 
hundred  acres  of  land  was  to  be  given;  to  an  '^ged  or  sick 
man,  forty  acres;  to  a  widow,  thirty  acres;  if  she  was  the 
head  of  her  family,  twenty  acres  more  were  given  to  her. 
All  of  them  took  20  per  cent  of  the  number  of  acres  as  per- 
petual property,  and  80  per  cent  as  mouth-share.  Mouth- 
share  means  the  share  of  each  person  belonging  to  the 
government.  In  the  perpetual  property,  a  certain  number 
of  mulberries,  elms,  dates  and  other  trees  which  were  fitted 
to  the  land,  were  to  be  planted. 

Where  the  land  was  sufficient  to  be  distributed  to  the 
people,  the  town  was  called  "  thinly  populated  town;"  and 
where  the  land  was  not  sufficient,  it  was  called  "  thickly 
populated  town."  In  the  thickly  populated  town,  there  was 
distributed  only  half  the  amount  of  land  distributed  in  the 
thinly  populated  town;  if  its  land  was  cultivated  every  other 
year,  double  portions  were  given  (100  acres).  In  the  thinly 
populated  town,  if  its  land  was  cultivated  every  fourth 
year,  it  was  given  not  at  the  rate  of  double  portions — that  is, 
if  it  should  be  given  in  double  portions,  it  would  be  four 
hundred  acres  for  a  man ;  because  it  seemed  too  much,  no 
double  portions  were  given;  but,  if  the  law  was  so.  those 
who  received  such  poor  land  were  unjustly  treated.  The 
artisans  and  merchants,  in  the  thinly  populated  town,  re- 
ceived half  as  much  as  the  share  of  a  farmer;  in  the  thickly 
populated  town,  they  received  nothing. 

'  History  of  Sui.  ch.  xxiv. 


520 


THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 


Those  people  who  moved  to  another  town,  or  who  were 
so  poor  that  they  could  not  even  pay  for  their  funerals, 
were  allowed  to  sell  their  perpetual  property.  Those  people 
who  moved  from  the  thickly  populated  town  to  the  thinly 
populated  one,  were  allowed  to  sell  even  their  mouth-share. 
But  after  they  had  sold  their  land,  nothing  was  given  to 
them  again.  When  the  land-owner  died,  his  land  was  taken 
by  the  government  and  given  to  those  having  no  land. 

In  the  tenth  month  of  every  year,  the  distribution  of 
land  took  place,  the  government  either  taking  it  back  or 
giving  it  out.  The  land  was  first  distributed  to  the  poor 
and  those  who  paid  taxes  and  served  the  public  labor.  If 
a  town  had  more  land  than  it  needed  for  distribution,  the 
surplus  was  given  to  neighboring  towns;  if  such  was  the 
case  in  a  district,  it  was  given  to  the  neighboring  districts; 
if  in  a  province,  it  was  given  to  neighboring  provinces.^ 

(a)  Criticism  of  the  Law  of  the  Tang  Dynasty 
The  chief  defect  of  the  law  of  the  Tang  dynasty  was  that 
it  allowed  the  people  to  sell  the  land — both  the  perpetual 
property  and  also  the  mouth-share.  Because  the  people 
were  allowed  to  sell  the  land,  there  was  no  way  to  prevent 
the  inequality  of  wealth.  Hence,  the  rich  bought  up  the 
land,  and  this  system  lasted  only  about  one  hundred  years. 
About  1201-1206  A.  K.  (650-655  A.  D.),  Tang  Kao 
Tsung  forbade  the  people  to  sell  the  perpetual  property  and 
the  mouth-share;  and  later,  he  decreed  that  the  buyer  of 
land  should  return  it  to  the  owner,  and  that  he  should  be 
fined.  But,  during  the  reign  of  Tang  Hsiian  Tsung  (1264- 
1306,  or  713-755  A.  D.),  land  was  monopolized  by  the  rich. 
Since  that  time,  all  the  lands  of  China  have  been  almost  en- 
tirely held  by  private  owners.  The  tsing  tien  system  never 
has  been  revived  again. ^ 

*  New  History  of  Tang,  ch.  li. 

2  Tables  of  land  distribution  are  found  on  the  next  three  pages. 


THE  TSING  TIEN  SYSTEM 


52 


Table  Showing  Systems  of  Land-distribution  Under  Six  Dynasties 


'       i         '       !    ; 

Kinds         People  !   ^Y^°P).^  .  1 

of  Classified     Citizens »    Classified     slaves*  px» 

Land        by  Ages    '  ^     I,.-^^ 

1  Condition 


Dynasties  ' 


•0 

c 

n 
•-) 

u 

3 

w 
Pi 

Regular 

Adults 

1 

Man 

Woman 

Secondary 
Adults 

Man 

Woman 

c 

i 
I 

i 

1 

1 

Sick  Man 

,0 
"5 

u 

Sick 
Woman 

Pi 

Widow 

2 

u 

'S 

Widow 

as  head 

of  Family 

S 

•5     cS-    oU  , 

120    40    80  i 


JZ  o 


cU 
y. 


100        80  80 


50      20 


I      Man 
:  W.  Wife 
40'        140       40' 


2'. 

>>  ! 


■ri 

£    S 

w     - 

a, 

C 


B 
o 


95 
30 


32 


24 


40 


Man 


Woman 


Ox 


Man 

Woman 

Man 

Sick   Man 

1 

\'  idow 

Widow 

a'5  head 

of  Family 

J 

5-6 

7-9 

40     80  i 

JO    40 ! 
30    60' 

r 

5 


Man 


Woman 


'  The  figures  under  the  column  of  citizens  and  that  of  slaves  indicate  the  number  of 
citizens  and  slaves. 

*The  rcmainine  figures  under  the  column  of  dynasties  indicate  the  number  of  acrc^ 
distributed  among  the  people. 

'  I'ndcr  the  column  of  ox.  the  land  was  given  for  an  ox. 

*  For  tlieir  homes,  the  nun.bcr  of  persons  wbs  counted  not  individually,  but  collect 
ively. 


^22        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 
Table  of  Age-limits  of  Land-holding 


Dynasties  ^ 

Age- 
classification 

Tsin 

16-60 

i  13-15 
1 61-65 

66- 
1-12 

Northern 
Wei 

Northern 
Ch'i 

Northern 
Chou 

18 
65 

Sui 

Tang 

Regular  adult 2.. 
Secondary  adult. 

Old' 

Young  

15 
3 

18 
66 

18 
60 

18 
60 

VI.    OPINIONS    ON    THE   TSING   TIEN    SYSTEM 

Since  the  tsmg  tien  system  was  established  by  the  cele- 
brated emperors  of  the  ancients,  and  its  principles  were 
worked  out  by  Confucius,  it  has  dominated  the  thoughts  of 
scholars  generation  after  generation.  As  the  limitation 
policy  of  Tung  Chung-shu  and  Shih  Tan  has  been  stated 
above,  we  shall  study  the  most  prominent  thoughts  of  other 
Confucians. 

I.  Hsun  Yiieh 
During  the  Han  dynasty,  the  landlords  took  half  of  the 
product  of  land  as  rent.  Therefore  Hsun  Yiieh  (699-760, 
or  148-209  A.  D.)  condemned  the  landlords  as  being  more 
tyrannical  than  the  Ch'in  dynasty.  He  was  not,  however, 
in  favor  of  the  immediate  abolition  of  land-ownership,  be- 
cause he  thought  that  there  would  be  great  confusion  rising 

^  The  figures  indicate  the  years  of  age.  Except  under  the  Tsin  dy- 
nasty, the  ages  referred  to  men  only. 

2  At  the  age  of  "  regular  adult ",  the  people  received  the  land ;  and 
at  the  age  of  "  old  ",  they  returned  it. 

3  Under  the  Northern  Wei  dynasty,  nothing  was  said  about  old  age; 
but  it  would  be  not  less  than  sixty,  nor  more  than  sixty-six. 


THE  TSING  TIEN  SYSTEM 


523 


pouLATiON  Under  the  Six  Dynasties  Roughly  Corresponding  with 
THE  Respective  Periods  of  Land-distribution 


-si. 

Number  of  Population  Under  the  Six  Dynasties' 

3   cj 

Christ 
Era 

Tsin 

Northern 
Wei 

Northern 
Ch'i 

Northern 
Chou 

Sui 

Tang 

831 

280 

16,163,863 

1036 

485 

32,327,726' 

HIS 

564 

206,880 

II3I 

S8o 

9,009,604 

1 140 

589 

11,009,604 

1 165 

624 

15,000,000 
(about) 

from  the  discontent  of  the  landlords,  and  that  llie  tsiug  tien 
sytem  never  could  be  carried  out  by  such  a  measure. 

His  opinion  is  that  the  tsing  ticn  system  should  not  be 
established  when  population  is  dense,  because  the  land  is  in 
the  hands  of  the  rich ;  and  that  it  should  be  established  only 
when  population  is  small  and  there  is  much  land. 

His  conclusion  is  still  a  limitation  policy;  but  he  makes 
his  point  more  clear  that  the  land  should  be  neither  sold  nor 
purchased.     He  says : 

As  we  cannot  entirely  revive  the  tsing  ticn  system,  there  should 

'  At  the  dates  given  in  this  table,  the  land  distributions  took  place. 
But  1131  is  an  exception,  because  the  land  of  the  Northern  Chou  dy- 
nasty was  distributed  by  Wen  Ti  ( 1085- 1 107). 

'  The  dynasties  of  Tsin,  Sui  and  Tang  ruled  the  whole  empire  of 
China.  The  Northern  Wei  ruled  only  the  northern  part  of  China;  and 
the  Northern  Ch'i  and  Chou  respectively  took  ?.  division  of  the  whole 
domain  of  Wei.  Referring  to  these  dates,  Wei  was  at  its  best  time; 
Tsin,  Sui  ind  Tang  were  at  their  beginning,  just  passing  the  period  of 
war;  and  Ch'i  and  Chou  were  during  the  period  of  war. 


524       THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

be  a  limitation  on  the  ownership  of  land  according  to  ^^t 
number  of  individuals.  Everyone  may  cultivate  land,  but 
he  is  not  allowed  to  sell  or  buy  it.  This  method  will  enrich 
the  poor  and  the  weak,  prevent  the  rich  from  monopolizing 
the  land,  and  lay  the  foundation  for  realizing  the  whole 
system  of  tsing  tien.     Is  it  not  a  good  thing? 

2.  Su  Hsiin 
As  Su  Hsun  (i  560-1617,  or  1009- 1066  A.  D.)  was  a 
great  writer,  he  condemned  the  landlords  very  strongly. 
He  said: 

After  the  tsing  Hen  system  has  been  destroyed,  the  land  is  not 
owned  by  the  cultivators,  and  the  land-owners  do  not  cultivate 
the  land  themselves.  The  land  of  the  cultivators  depends 
upon  the  rich.  In  a  rich  family,  the  land-owner  has  a  great 
extent  of  land,  and  employs  journeymen  for  the  different  parts 
of  its  cultivation.  He  whips  them  and  enslaves  them,  treat- 
ing them  like  actual  slaves.  He  easily  sits  down  and  looks 
around  for  the  issue  of  his  direction;  while  among  his  em- 
ployees, weeding  the  field  for  him  in  summer,  ?.nd  reaping  the 
crop  for  him  in  autumn,  none  of  them  disobeys  his  regulations 
and  takes  a  diversion.  But,  among  the  products  of  the  land, 
the  land-owner  himself  gets  half,  and  the  cultivators  all  to- 
gether get  the  other  half.  There  is  only  one  land-owner, 
but  there  are  ten  cultivators.  Therefore,  the  land-owner  ac- 
cumulates one-half  of  the  land-products  day  after  day,  and 
grows  richer  and  richer,  stronger  and  stronger;  the  cultivators 
consume  the  other  half  day  after  day,  and  fall  into  poverty 
and  starving  without  appeal. 

Such  a  condemnation  of  the  landlords  sug-gests  the  con- 
demnation passed  by  the  socialists  upon  capitalists.  In  fact, 
the  separation  between  land-owner  and  land-cultivator  is 
the  great  evil  growing  out  of  the  destruction  of  the  tsing 
tien  system. 

Su  Hsun,  however,  did  not  approve  of  the  policy  of  re- 


THE  TSING  TIEN  SYSTEM 


525 


establishing  tsiug  ticn.  His  argument  is  based  not  on  the 
fact  that  the  land  of  the  rich  cannot  be  taken  away,  but  on 
the  fact  that  the  tsiug  ticn  system  itself  is  impossible  of  full 
realization.  He  said  that  even  though  the  rich  should  offer 
their  land  to  the  public  and  petition  for  the  tsiug  ticn  sys- 
tem, it  never  could  be  re-established.  Then  he  described 
all  the  details  of  this  system  under  the  Chou  dynasty,  and 
said  that,  even  though  this  system  were  thoroughly  re-estab- 
lished through  a  period  of  several  centuries,  the  people 
would  all  have  died  long  before.  His  theory  is  more  ad- 
vanced than  that  of  Hsun  Yiieh,  since  he  thought  that  the 
form  of  tsiug  ticn  is  impossible. 

But  he  approved  of  the  limitation  policy,  and  pointed  out 
that  the  reason  this  policy  had  not  been  realized  was  be- 
cause the  government  was  afraid  that  the  rich  would  not 
give  up  their  land  which  was  beyond  the  limit  prescribed. 
When  he  criticised  the  law  of  Han  Ai  Ti,^  he  said  ihat  the 
limit  of  this  law,  which  permitted  one  man  to  own  three 
thousand  acres,  was  too  high,  and  that  the  days  of  grace, 
which  were  only  three  years,  were  too  short.  Such  a  short 
period  for  the  enforcement  of  this  law  meant  forcing  the 
people  to  destroy  their  own  property.  It  was  not  in  ac- 
cordance with  human  nature,  and  it  was  difficult  of  reali- 
zation. 

Then  he  drew  his  conclusion,  that  the  limit  of  land-owner- 
ship should  be  small,  and  that  the  limit  should  not  be  applied 
to  the  present  day,  but  simply  to  the  future.  It  should  not 
take  away  the  land  which  exceeded  the  limit  before  the  limit 
was  established;  but  it  should  merely  prevent  people  in  the 
future  from  owning  more  than  the  limit.  After  a  few  gen- 
erations, the  descendants  of  the  rich  would  either  fall  into 
poverty  and  diffuse  to  others  their  land,  which  had  been 

^  See  supra,  p.  507. 


526        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

more  than  the  hmit;  or  they  would  divide  it  up  among 
themselves.  Then  the  rich  could  not  own  too  muc]-i  land, 
and  there  would  be  plenty  of  it.  The  poor  could  easily  get 
the  land,  and  they  would  not  be  enslaved  by  others.  Al- 
though this  policy  is  not  the  system  of  tsing  tien,  it  would 
reach  the  same  results  as  tsin(r  tien. 

o 

3.  Chu  Hsi 

Chu  Hsi  agreed  with  the  theory  of  Hsun  Yiieh,  and  said 
that  the  land  could  not  be  taken  away  from  the  people. 
The  only  opportunity  for  the  re-establishment  cf  tsing  tien 
is  after  a  great  revolutionary  war.  Under  such  a  condition, 
when  the  population  is  gone,  and  the  land  belongs  to  the 
government,  the  land-distribution  can  be  realized.  In  time 
of  peace,  it  can  never  be  done. 

He  was  the  first  one  who  discarded  the  limitation  policy. 
He  said  that  it  was  absurd.  In  general,  at  the  beginning, 
it  would  be  effective;  but  after  three  or  five  years,  it 
would  have  no  force.  At  the  present  even  though  the 
limitation  of  land-ownership  might  be  fixed,  year  after 
year  it  would  be  only  a  dead  letter.  Then  he  gave  his 
opinion,  that  if  the  tsing  tien  system  could  be  realized,  we 
should  realize  it;  but  if  it  could  not  be  realized,  we  should 
leave  the  present  institution  untouched.  The  theory  of 
limitation,  according  to  him,  was  only  a  joke. 

4.  Yeh  Shih 
Yeh  Shih  was  the  first  one  who  thought  that  the  tsing 
tien  system  is  not  useful  in  modern  times,  and  that  it  is  not 
the  basis  of  a  good  government.  He  said  that  even  if  the 
lands  of  the  whole  empire  should  belong  to  the  government, 
and  Wen  Wang,  Wu  Wang  and  the  Duke  of  Chou  should 
rule  again  in  the  empire,  there  is  no  need  of  tsing  tien,  be- 
cause its  numerous  and  subtle  rules  cannot  be  carried  out 
in  modern  times.     The  most  important  point  he  brought 


THE  TSING  TIEN  SYSTEM 


527 


cut  is  the  relation  between  feudalism  and  the  tsing  tien  sys- 
tem. From  the  reign  of  Huang  Ti  to  the  Chou  dynasty,  the 
emperor  governed  only  the  imperial  state,  and  the  feudal 
princes  also  governed  only  their  own  states  by  hereditary 
right.  Hence,  the  tsing  ticn  system  prevailed  over  the  whole 
empire.  But,  in  modern  times,  the  whole  empire  is  under 
a  single  government ;  although  there  are  many  officials,  they 
all  belong  to  the  emperor,  and  the  term  of  their  office  is  not 
certain.  Who  shall  be  set  to  work  for  the  formation  of 
tsing  ticnf  Even  if  the  officials  should  work  it  out.  it 
would  require  a  long  time — at  least  more  th-m  ten  years. 
In  the  interval,  how  could  the  whole  empire  suspend  the 
cultivation  of  the  land?  Indeed,  as  the  feudal  system  has 
disappeared,  it  is  impossible  for  the  tsing  tien  system  to  re- 
main alone. 

Then  he  contributed  a  new  idea,  and  looked  for  the  solu- 
tion of  economic  problems  beyond  the  tsing  ticn  system.  He 
said  that  even  under  the  tsing  tien  system,  the  amount  of 
products  was  not  different  from  that  of  modern  times. 
Moreover,  the  use  of  great  dikes  and  long  banks,  storing 
water  from  the  mountains,  and  opening  it  for  the  need  of 
irrigation,  is  a  simpler  and  more  convenient  method ;  it  costs 
a  smaller  amount  of  labor,  but  gives  greater  use.  This  shows 
that  he  had  a  dynamic  mind,  and  was  not  satisfied  with  the 
form  of  tsing  ticn.  Then  he  said  that  if  the  government  of 
modern  times  were  not  inferior  to  that  of  the  Three  Dy- 
nasties, it  would  make  the  people  support  themselves 
through  agriculture,  and  there  would  be  no  difference  be- 
tween the  modern  and  the  ancient.  The  reason  why  mod- 
ern times  are  inferior  to  the  Three  Dynasties  is  not  because 
the  land  is  not  divided  into  different  tsing,  but  because  pov- 
erty among  the  people  cannot  be  abolished. 

His  conclusion  looks  not  backward,  but  forward.     Apply- 
ing   wisdom    according    to    the    times,    and    establishing 


^28        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

law  in  harmony  with  the  actual  world — this  is  his  main 
point.  He  discarded  entirely  the  system  of  tsing  ticn,  and 
emphasized  the  importance  of  legislation  for  the  needs  of 
the  time.     He  said: 

If  the  government  will  enact  social  legislation,  ten  years  later 
the  people  will  be  neither  too  rich,  nor  too  poor ;  encroach- 
ment by  the  wealthy  will  cease  through  its  own  nature; 
and  the  whole  empire  will  get  quickly  the  benefit  of  pro- 
duction;— this  is  the  most  important  work  that  the  emperor 
and  the  officials  should  hasten  to  do. 

5.  Ma  Tuan-lin 
The  theory  of  Ma  Tuan-lin  is  like  that  of  Yeh  Shih,  em- 
phasizing also  the  relation  between  feudalism  and  the  tsing 
tien  system.  In  ancient  times,  the  feudal  estate  was  small, 
and  its  people  were  few ;  hence  this  system  was  easily  estab- 
lished. He  says  that  it  would  be  the  same  whether  the  an- 
cient feudal  princes  distributed  one  hundred  acres  to  each 
man  or  the  modern  landlords  give  their  tenants  the  land 
of  their  ancestors.  But  in  modern  times,  territory  is  ex- 
tensive, and  population  is  large;  the  governors  take 
the  place  of  feudal  princes,  and  none  can  keep  the 
office  for  his  son;  under  such  a  condition,  the  tsing  tien 
system  never  can  exist.  Therefore,  under  the  Tsin,  the 
Northern  Wei,  the  Northern  Ch'i,  the  Northern  Chou,  the 
Sui  and  the  Tang  dynasties,  although  the  system  of  land- 
distribution  had  been  realized,  it  did  not  last  very  long.^ 

VII.  CONCLUSION 

There  is  no  doubt  that  the  tsing  tien  system  has  passed 
away  never  to  be  revived.  From  the  date  of  land-equaliza- 
tion by  Wei  Hsiao-wen  to  the  first  year  of  Tang  Hsiian 
Tsung  is  two  hundred  twenty-eight  years   (1036-1264,  or 

*  General  Research,  ch.  i. 


THE  TSING  TIEN  SYSTEM 


529 


485-713  A.  D. ) .  But  from  the  first  year  of  Huang  Ti  to  the 
date  of  destruction  of  tsing  tien  by  Shang  Yang  is  two  thou- 
sand three  hundred  forty-eight  years  (2147  B.  K.-202  A.  K. 
or  2698-350  B.  C).  The  length  of  these  periods  shows  the 
difference  between  the  ancient  and  the  medieval  times.  Be- 
cause the  ancient  times  were  feudal,  the  tsing  tien  system 
lasted  for  thousands  of  years;  and  because  the  medieval 
times  were  under  absolute  monarchy,  the  system  of  equaliza- 
tion of  land,  which  was  not  the  exact  system  of  tsing  tien, 
did  not  continue  ofr  three  hundred  years.  The  fact  is  that 
the  tsing  tien  system  cannot  exist  without  the  feudal  system. 
Confucius  was  not  in  favor  of  feudalism.  But,  as  the 
tsing  tien  system  was  bound  up  with  feudalism,  why  was 
Confucius  in  favor  of  tsing  tien?  Because  feudalism  created 
political  inequality,  he  hated  feudalism;  and  because  the 
tsing  tien  system  created  economic  equality,  he  loved  it.  His 
idea  was  based  entirely  on  the  principle  of  equality.  More- 
over, as  he  lived  in  the  feudal  stage  and  so  could  not  do 
away  immediately  with  the  feudal  system,  he  was  obliged  to 
give  his  theory  for  the  better  condition  of  the  people  accord- 
ing to  his  stage.  In  his  time,  when  the  feudal  estate  grew 
up  as  a  great  nation,  and  the  tsing  tien  system  was  decaying, 
the  land  was  taxed  at  a  higher  rate  than  that  of  one-tenth 
of  its  product:  the  people  were  cruelly  employed  for  mili- 
tary purposes  at  improper  seasons ;  the  forced  labor  took 
much  more  than  three  days;  and  the  tsing  tien  system 
itself  in  its  decay  served  to  make  confusion  and  inequal- 
ity among  the  people.  In  a  word,  it  was  a  transitional  stage, 
lender  such  a  condition,  why  should  Confucius  1  ot  advocate 
the  tsing  tien  system?  According  to  this  system,  not  only 
could  the  people  not  own  more  land  than  their  neighbors, 
but  also  the  feudal  lords  could  not  tax  the  people  more  and 
make  them  work  more.  Indeed,  it  was  a  protection  for  the 
people  against  the  feudal  lords,  and  a  remedy  for  the  evils 
of  the  feudal  stage. 


530        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

Whenever  there  is  a  decay  of  any  system,  there  must  be 
confusion  and  trouble.  During  the  decay  of  tlie  tsing  tien 
system,  when  Shang  Yang  saw  it,  he  destroyed  it  entirely. 
It  was  a  destructive  policy.  Shang  Yang  was  condemned 
by  many  Confucians,  but  he  was  a  great  statesman. 
He  invited  foreigners  to  cultivate  the  land,  and  gave 
them  private  land-ownership,  in  order  to  send  the  natives 
abroad  to  engage  in  war.  He  cared  more  for  the  glory 
of  the  state  than  for  the  betterment  of  the  people.  His 
economic  reforms  were  not  for  economic  but  for  military 
reasons.  The  results  were  that  the  state  got  an  immediate 
political  advantage,  but  the  people  lost  the  economic  equality 
based  on  land-ownership. 

Mencius  living  at  the  same  time  with  Shang  Yang,  when 
he  saw  the  tsing  tien  system,  wanted  to  make  it  as  perfect  as 
possible.  It  was  a  constructive  policy.  Mencius  cared  for 
the  betterment  of  the  people,  and  not  for  military  glory. 
His  economic  reforms  were  for  economic  reasons,  for  the 
intellectual  and  moral  education  of  the  people,  but  not  for 
the  sake  of  war. 

However,  Mencius  was  also  a  great  statesman.  He 
thought  that,  if  the  tsing  tien  system  were  wisel}'-  established, 
it  would  conquer  the  whole  empire.  His  theory  is  that  the 
people  are  the  most  important  element  of  the  state;  hence, 
if  any  prince  could  win  the  heart  of  the  people  in  the  neigh- 
boring countries,  he  would  win  those  states.  It  seems  im- 
practicable. But,  in  his  time,  the  princes  took  the  people 
away  in  the  agricultural  seasons  to  make  them  engage  in 
war,  and  caused  hunger  and  loss  to  their  families,  and  con- 
sequently the  people  had  no  love  for  their  princes.  More- 
over, as  the  people  of  the  whole  Chinese  world  were  prac- 
tically one,  and  generally  had  no  particular  love  for  their 
own  feudal  state,  it  was  easy  for  the  virtuous  ruler  to 
unite  the  whole  empire.     If  there  were  a  truly  virtuous 


THE  TSING  TIEN  SYSTEM 


531 


ruler,  loving  humanity  for  the  whole  empire,  establishing 
the  tsing  ticn  system  as  Mencius  said,  Jind  making  the  for- 
eign people  love  him  as  his  own  people,  he  would  be  sure 
that  when  he  attacked  his  enemies,  their  people  would  wel- 
come him,  and  he  would  become  the  only  ruler  of  the  whole 
empire.  This  theory  should  be  called  universalism,  which 
means  to  conquer  the  world  by  virtue.  It  differs  from  the 
theory  of  Shang  Yang,  whose  theory  sliould  be  called  im- 
perialism, which  means  to  conquer  the  world  by  force.'  Un- 
fortunately, the  policy  of  Shang  Yang  was  pu:  into  actual 
practice,  and  it  was  successful ;  but  the  policy  of  Mencius 
remains  only  a  theory,  because  no  prince  made  him  a  min- 
ister.    This  was  an  unfortunate  thing. 

'i'he  system  of  tsing  ticn  was  good  not  because  the  land 
was  divided  into  different  tsing,  but  because  its  principles 
were  based  on  equality.  When  we  say  that  a  book  is  good, 
we  refer  not  to  its  binding,  but  to  the  work  of  the  author. 
When  Su  Hsun  and  Yeh  Shih  argued  about  the  form  of 
tsing  ticn,  Su  thought  that  it  was  impossible,  and  Yeh 
thought  that  it  was  also  unnecessary.  Both  were  right. 
But,  when  we  think  about  this  system,  we  should  consider, 
net  its  form,  but  its  principles. 

Superficially,  the  tsing  ticn  system  seems  only  an  agrarian- 
ism:  but  this  is  not  true.  The  word  agrarianism  might 
be  applied  to  the  system  of  equalization  of  land  under  the 
later  six  dynasties;  but  it  cannot  be  applied  to  ihe  tsing  ticn 
system  itself.  According  to  the  theory  of  Confucius,  the 
tsing  ticn  system  is  the  basis  of  everything,  and  is  not 
merely  a  distribution  of  land.  The  essential  ideas  of  this 
system  are  that  everyone  should  get  an  equal  share  and  an 

*  Universalism  is  the  true  sense  of  the  Chinese  word  "king."  and 
imperialism  is  that  of  "  chieftain."  See  Classics,  vol.  ii.  pp.  196-7.  See 
also  ibid.,  pp.  134-7.  145-9.  181-5.  271-4,  300-301.  438-440.  etc. 


532 


THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 


equal  opportunity  for  the  enjoyment  of  economic  life,  and 
also  of  social,  political,  intellectual  and  moral  life. 

In  many  of  its  essential  ideas,  the  tsing  tien  system  is 
similar  to  modern  socialism.  The  two  have  the  same  object 
of  equalizing  the  wealth  of  the  whole  society.  Of  course,  by 
the  changes  of  methods  and  organizations,  the  modern  in- 
dustrial stage  must  differ  from  the  ancient  agricultural 
stage.  In  ancient  times,  land  was  the  most  important 
form  of  wealth.  Therefore,  when  land  was  equally  dis- 
tributed, the  wealth  of  the  people  was  practically  equal. 
Under  the  tsing  tien  system,  the  people  did  not  own  even 
their  houses,  and  their  whole  economic  life  was  controlled 
by  the  state.  It  was  an  extreme  socialism,  or  state  social- 
ism. In  modern  times,  passing  from  the  agricultural  stage 
to  the  industrial  stage,  the  land  is  not  so  important  as  before. 
Even  if  the  land  could  be  equally  distributed  or  nationalized, 
the  wealth  of  the  people  would  still  be  unequal,  because 
besides  the  land,  there  are  many  other  capital  goods.  There- 
fore, modern  socialism  has  more  difficulties  to  overcome 
than  that  of  the  ancients.  But  the  essential  ideas  of  mod- 
ern socialism  are  not  different  from  those  of  the  tsmg  tien 
system.  By  the  tsing  tien  system,  everyone  got  the  whole 
of  what  he  produced,  because  there  was  no  landlord.  When 
Su  Hsun  condemned  the  landlord,  it  was  because  he  took 
half  of  the  product  from  the  cultivators.  It  is  the  same 
argument  as  that  of  the  socialist,  who  would  allow  no  cap- 
italist to  take  half  the  product  of  the  laborer.  In  a  word, 
the  tsing  tien  system  and  socialism  both  aim  at  equality  of 
wealth,  and  at  allowing  the  producers  to  get  all  that  they 
produce. 

However,  the  Chinese  people  have  been  a  moderate  peo- 
ple, and  they  never  go  to  extremes.  When  the  scholars 
thought  about  the  tsing  tien  system,  although  they  hated 
the   landlord,    they    never    thought    that    his    land    should 


THE  TSING  TIEN  SYSTEM 


533 


be  taken  away  by  confiscation  as  in  the  theory  of  Henry 
George.  Throughout  the  whole  history  of  China,  Wang 
Mang  was  the  only  one  who  nationalized  the  land  by  a  policy 
of  confiscation.  However,  even  he  did  not  touch  those 
who  owned  no  more  than  one  tshig.  [f  a  family  had  only 
one  hundred  acres,  it  was  saved  from  confiscation.  More- 
over, after  three  years,  he  abolished  the  law  of  land  confis- 
cation. As  Wang  Mang  was  condemned  by  the  Confu- 
cians, no  one  thought  thas  his  confiscation  policy  was  right. 
Therefore,  the  land  of  China  will  probably  remain  in  the 
hands  of  private  owners  forever,  unless  there  shall  bo  a  new 
form  of  socialism. 


CHAPTER  XXVII 

Monopoly 

i.  condemnation  of  monopoly 

Confucius  hated  monopoly;  but  monopoly  was  con- 
demned before  the  time  of  Confucius.  In  298  B.  K.  (849 
B.  C),  when  Chou  Li  Wang  loved  gain  and  was  going  to 
employ  Duke  Yung,  Jui  Liang-fu  gave  him  a  warning  as 
follows : 

Profit  is  the  product  of  all  things,  and  the  fruit  of  heaven  and 
earth.  If  one  monopolizes  it,  he  will  cause  much  hatred. 
Since  all  people  are  getting  profit  from  heaven  and  earth  and 
all  things,  why  should  it  be  monopolized?  .  .  .  Even  when 
one  of  the  common  people  makes  monopoly,  he  should  be  called 
a  robber.  If  your  Majesty  practices  it,  there  will  be  very  few 
people  who  come  to  you. 

Li  Wang  did  not  heed  this  admonition,  and  employed  Duke 
Yung  as  minister.  The  result  was  that  he  was  banished 
by  the  people.^ 

The  theory  of  Jui  Liang-fu  is  harmonious  with  that  of 
Confucius.  It  will  be  convenient  to  treat  Confucius'  the- 
ory in  accordance  with  modern  categories,  and  we  may 
classify  monopoly  first  into  two  grand  divisions,  private  and 
public.  We  may  classify  public  monopoly  as  fiscal  and 
social ;  private  monopoly  as  personal,  legal,  natural,  and 
business.     Let  us  consider  them  in  this  order. 

'  Narratives  of  Nations,  bk.  i. 
534 


MONOPOLY 


II.    PUBLIC    MONOPOLIES. 


535 


By  public  inonopoly,  we  mean  monopoly  by  the  public  at 
large,  not  by  the  ruler  of  any  government.  The  ruler  him- 
self not  only  should  establish  no  monopoly,  but  should 
make  no  profit  at  all.  According  to  the  principles  of 
Confucius,  if  public  monopoly  is  called  for,  in  order  to 
regulate  production,  distribution,  or  consumption,  it  would 
be  approved.  For  example,  the  nationalization  of  land 
and  the  control  of  natural  resources  are  principles  of  his. 
Judging  from  his  ideas,  all  natural  monopolies,  such  as 
wagon-roads,  streets,  canals,  docks,  bridges,  ferries,  water- 
ways, harbors,  lighthouses,  railways,  telegraphs,  telephones, 
the  postoffice,  electric  lighting,  waterworks,  gasworks,  etc., 
should  be  public  monopolies,  either  municipal,  or  national, 
or  even  universal. 

If  the  public  monopolizes  a  thing  simply  for  fiscal  reasons, 
however,  Confucius  would  not  approve  it.  The  govern- 
ment monopolies  of  salt  and  iron,  originated  by  Kuan  Tzu, 
would  not  conform  to  the  ideal  of  Confucius,  because  prices 
are  thereby  raised.  Tn  short,  public  monopoly  for  social 
reasons  is  good,  but  public  monopoly  for  fiscal  reasons 
is  not. 

As  to  ordinary  business,  Confucius  thinks  that  the  state 
should  control  prices,  but  should  not  monopolize  the  whole 
market.  So  far  as  there  is  no  natural  monopoly,  and  com- 
petition is  possible  and  desirable,  Confucius  will  not  let  the 
state  establish  monopoly.  Although  the  state  should  be  the 
regulator  of  prices,  such  action  is  not  monopoly,  but  simply 
helping  to  free  competition  and  destroy  private  monopoly. 
These  are  the  general  principles  of  Confucius  in  regard  to 
public  monopoly. 


536        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 
III.    PRIVATE    MONOPOLIES 

1.  Personal  Monopolies 

Confucius  opposes  private  monopoly,  with  few  exceptions. 
Take  personal  monopoly  first.     Confucius  is  very  glad,  in- 
deed, to  give  special  honor  and  wealth  to  men  who  possess 
extraordinary  virtue  or  ability.     Therefore,  honoring  the 
virtuous  and  employing  the  able,  and  putting  the  distin- 
guished men  in  high  positions,  is  a  principle  of  Confucius. 
But  such  a  temporary  personal  monopoly  is  not  for  the 
sake  of  the  individuals,  but  for  that  of  society  at  large. 
Confucius  says:  "  Employ  the  upright  and  put  aside  all  tlie 
crooked ;  this  way  can  make  the  crooked  upright."  '     There- 
fore, to  grant  rewards  to  the  individuals  who  hold  personal 
monopoly  is  not  only  doing  them  justice,  but  also  giving  all 
others  inspiration.    Even  personal  monopoly,  however,  Con- 
fucius does  not  let  alone,  but  he  makes  the  people  acquire  it 
by  education.     Hence  the  system  of  universal  free  education 
arises,  and  the  power  of  personal  monopoly  is  diminished  by 
popular  education. 

2.  Legal  Monopolies 

As  to  legal  monopoly,  Confucius  would  not  approve  it. 
When  Chung-shu  Yu-he,  an  officer  of  Wei,  showed  military 
ability  (38  B.  K.),  Wei  rewarded  him  with  a  city.  He  re- 
fused it,  and  asked  for  the  right  to  use  the  suspended  instru- 
ments of  music  disposed  incompletely,  and  the  saddle-girth 
and  bridle-trappings.  These  things  were  legally  used  only 
by  the  prince  of  a  state,  but  such  a  right  was  granted  to 
him.     When  Confucius  later  heard  of  this,  he  said : 

Alas !  It  would  have  been  better  to  give  him  many  cities.  It 
IS  only  peculiar  articles  of  use,  and  names,  which  cannot  be 
granted  to  others  than  those  to  whom  they  belong;  to  them  a 

^  Classics,  vol.  i,  p.  261. 


MONOPOLY 


537 


ruler  has  particularly  to  attend.  By  the  right  use  of  names  he 
secures  the  confidence  of  the  people.  By  that  confidence  he 
preserves  the  articles  distinctive  of  ranks.  In  those  articles 
the  ceremonial  distinctions  of  rank  are  hid.  By  those  cere- 
monial distinctions  justice  is  practised.  By  justice,  socal  profit 
is  produced.  By  social  profit  the  people  are  equalized.  Atten- 
tion to  these  things  is  the  condition  of  good  government.  If 
they  be  conceded  where  they  ought  not  to  be  conceded,  it  is 
giving  away  the  government  to  the  recipients.  When  the  gov- 
ernment thus  perishes,  the  state  will  follow  it ;  it  is  not  pos- 
sible to  arrest  that  issue. ^ 

[f,  according  to  the  principles  of  Confucius,  even  the  right 
to  use  certain  articles  should  not  be  granted,  there  is  no 
reason  why  the  government  should  grant  legal  monopoly. 
The  legal  right  of  establishing  monopoly  is  included  in  the 
word  "  names  "  used  by  Confucius.  It  is  a  part  of  sov- 
ereign power,  and  should  not  be  given  to  any  private  person. 
This  is  for  the  profit  of  the  whole  society  and  for  the  equal- 
ity of  the  people. 

In  Chinese  history,  no  legal  monopoly  has  been  given  to 
private  persons  by  the  government,  except  in  one  instance. 
In  1837  (1286  A.  D.),  Yiian  Shih  Tsu  granted  the  seals  of 
paper  money  to  Chang  Hsiian  and  Chu  Ts'ing,  and  let  them 
make  paper  money,  on  account  of  their  service  in  sea- 
transportation.  When  their  wealth  was  equal  to  that  of  the 
state,  the  government  killed  them  on  some  excuse,  because 
it  was  afraid  that  they  would  be  a  danger  to  the  state.' 
Legal  monopoly  is  generally  not  good  for  society  at  large. 

A  limited  legal  monopoly,  such  as  copyrights  and  patents, 
however,  Confucius  would  approve.  Since  his  philosophy 
is  based  on  a  justice  that  is  practised  by  a  system  of  rewards, 

'  Classics,  vol.  V,  pt.  i,  p.  344. 

'  Continuation  of  the  General  Research,  ch.  ix. 


538       THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

he  would  grant  a  limited  monopoly  to  the  author  or  in- 
ventor, in  order  to  reward  him  and  to  encourage  others. 
But  the  Chinese  did  not  develop  such  a  monopoly.  Hence 
the  people  had  no  encouragement  for  invention,  and  many 
inventions  were  lost.  In  old  times,  the  people  generally 
did  not  care  to  invent  anything.  Even  the  scholars  who 
did  invent  things,  did  so,  not  for  the  sake  of  economic  in- 
terest, but  for  the  sake  of  curiosity,  or  to  show  their  ability. 
Therefore  their  inventions  died  with  them.  In  those  times 
the  people  lived  in  an  isolated  way,  communication  and 
transportation  were  poor,  and  there  were  no  newspapers 
and  magazines,  so  that  the  people  could  not  have  known 
anything  about  new  inventions  had  there  been  any.  More- 
over, even  if  they  had  known  about  them,  how  could  they 
have  understood  the  secret  of  the  inventors  and  have  dupli- 
cated them?  Therefore,  many  old  inventions  are  simply 
recorded  in  history,  without  producing  any  great  effect,  and 
many  others,  such  as  gunpowder,  and  the  art  of  printing, 
are  by  unknown  inventors.  There  were  many  causes  which 
retarded  Chinese  invention,  but  the  absence  of  a  pater^t  sys- 
tem was  a  very  important  one. 

There  arises  a  question — how  did  the  ancients  develop 
and  preserve  their  inventions?  Because  they  had  a  quasi- 
legal  monopoly — the  hereditary  right  of  holding  office  in 
different  sciences  and  arts.  For  each  profession  and  each 
line  of  workmanship,  there  was  a  government  office  which 
was  hereditarily  held,  even  throughout  different  dynasties. 
Since  their  division  of  labor  extended  to  details,  and  their 
specialization  lasted  for  many  generations,  they  would  nat- 
urally invent  new  things  or  improve  old  methods.  Even  if 
it  were  not  so,  the  old  would  scarcely  have  been  lost,  be- 
cause the  government  was  its  preserver,  even  though  the 
family  should  die  out.  Therefore,  although  the  hereditary 
offices  were  a  bad  thing,  they  still  produced  some  good 
effects. 


MONOPOLY 


539 


Confucius,  however,  did  not  approve  the  inheritance  of 
offices,  and  since  the  Han  dynasty  such  a  system  has  been 
destroyed.  Because  the  people  could  not  get  legal  monopoly, 
they  resorted  to  secret  monopoly, — that  is,  when  they  in- 
vented or  discovered  anything,  they  kept  it  secret,  as  a  nat- 
ural monopoly.     Professor  Friedrich  Hirth  says: 

It  is  a  feature  of  Chinese  social  life  that  specialities  in  art  and 
workmanship  are  treated  as  the  monopoly  of  certain  families 
on  which  no  outsider  is  allowed  to  trespass.  Such  was  the 
case  under  the  Han  dynasty  with  certain  patterns  of  silk  bro- 
cade. Many  trades,  such  as  the  superior  lacquer  industry  in 
Foochow  and  the  manufacture  of  bronze  drums  in  Canton, 
have  been  family  secrets ;  and  these  secrets  are  so  well  guarded 
that  a  branch  of  art  may  die  out  with  the  last  scion  of  the 
family  that  created  it,  as  in  the  case  of  the  celebrated  Foochow 
lacquer,  the  secret  of  which  was  lost  during  the  T'ai-p'ing  re- 
bellion.^ 

Such  a  secret  monopoly  was  not  legally  protected,  but  ex- 
isted simply  because  there  was  no  competition  on  the  same 
level.  It  had  two  evils:  First,  the  time  of  monopolization 
was  unlimited,  lasting  from  generation  to  generation.  Sec- 
ond, the  secret  was  easily  lost,  because  the  family  did  not 
teach  it  to  outsiders.  It  is  much  better  to  create  legally  a 
limited  monopoly,  and  let  the  monopolist  teach  others. 
This  is  the  way  to  develop  secret  monopoly  to  open  monop- 
oly, and  society  will  benefit  from  it  much  more  than  th:^ 
monopolist.  Since  2449  (^1898  A.  D. )  the  tendency  in 
China  is  in  this  direction. 

In  short,  regarding  legal  monopoly,  Confucius  would  give 
it  for  a  limited  time  to  those  who  contribute  something  to 
society,  but  not  to  those  who  are  simply  favorites  of  the 
court. 

'  The  Ancient  History  of  China,  p.   117. 


540       THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

3.  Natural  Monopolies 

As  to  natural  monopoly,  Confucius  positively  does  not 
allow  any  private  person  to  hold  it.  According  to  the  prin- 
ciples of  the  Spring  and  Autumn,  the  famous  mountains 
and  great  meres  are  not  conferred  to  the  feudal  princes. 
"  Because  they  are  the  natural  resources  of  heaven  and 
earth,  which  are  not  produced  by  human  power,  they  ought 
to  be  shared  in  common  with  all  the  people."  ^  This  prin- 
ciple is  also  set  forth  in  the  ''  Royal  Regulations."  ^  If  such 
natural  resources  were  conferred  on  the  feudal  princes,  they 
would  be  their  owners,  and  the  people  could  not  make  use 
of  them.  Therefore,  they  are  left  as  common  property  for 
all  the  people,  and  the  princes  are  not  allowed  to  hold  such 
a  natural  monopoly.  Since  Confucius  does  not  permit  even 
the  feudal  princes  to  own  the  natural  resources,  how  can 
any  private  person  have  the  right  to  own  them?  Subject  to 
this  principle  is  the  modern  development  of  franchise  mo- 
nopolies, such  as  railways,  waterworks,  etc. 

This  principle  is  applied  not  only  to  local  or  national 
monopoly  acquired  by  natural  advantages,  but  also  to  inter- 
national monopoly.  Explaining  this  principle,  the  General 
Discussion  in  the  V/hite  Tiger  Palace  says : 

It  makes  all  the  people  share  the  advantages,  and  does  not 
allow  any  single  nation  to  monopolize  them.  The  riches  of 
mountains  and  forests,  the  advantages  of  water  and  rivers, 
should  be  commonly  distributed  over  thousands  of  miles.  It 
is  for  the  equalization  between  those  who  have  something  and 
those  who  have  nothing,  and  for  the  fill  of  insufficiency.^ 

Since  Confucius  takes  the  whole  world  as  an  economic  unit, 

*  Annotation  of  Kung-yang ,  i6th  year  of  Duke  Huan. 
2  See  supra,  p.  347. 
»  Bk.  iv. 


MONOPOLY 


541 


he  forbids  not  only  private  persons,  but  also  individual 
nations,  to  monopolize  the  natural  advantages.  Indeed,  if 
there  is  any  natural  monopoly  affecting  the  whole  world, 
it  should  belong  to  the  government  of  the  world-state.  This 
is  the  basis  of  the  free-trade  doctrine  of  Confucius  and  that 
of  his  world-socialism. 

During  the  Han  dynasty,  when  Sang  fiung-yang  de- 
fended the  government  monopoly  of  salt  and  iron  (471,  or 
81  B.  C),  he  referred  to  this  principle,  and  said  that  the 
people  should  not  be  allowed  to  monopolize  the  natural  re- 
sources.^ When  the  Tsin  dynasty  (816,  or  265  A.  D.) 
and  the  Liang  dynasty  (1053,  or  502  A.  D.)  distributed 
the  feudal  estates,  the  famous  mountains  and  great  meres 
were  not  conferred ;  and  all  the  regions  producing  salt,  iron, 
gold,  silver,  copper  and  tin,  and  bamboo-gardens,  capital 
cities,  public  buildings  and  different  parks  were  not  included 
in  any  feudal  estate.^  These  facts  show  the  influence  of 
Confucianism  upon  actual  law. 

4.  Business  Monopolies 

Confucius  does  not  permit  private  persons  to  have  busi- 
ness monopolies,  a  principle  which  is  thus  indicated  by  Men- 
cius: 

In  old  times,  the  market-places  were  for  the  exchange  of  the- 
articles  which  they  bad  for  those  which  they  had  not.  There 
were  simply  some  officers  to  keej)  order  among  them.  It  hap- 
pened that  there  was  a  mean  fellow,  who  looked  out  for  a  con- 
spicuous mound,  and  got  up  upon  it.  Thence  he  looked  right 
and  left,  to  catch  in  his  net  the  whole  profit  of  the  market. 
The  people  all  thought  his  conduct  mean,  and  therefore  they 

•  The  Debate  on  the  Government  Monopoly  of  Salt  and  Iron.  bk.  vi. 
'  General  Research,  chs,  cclxxi-ii. 


542        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

proceeded  to  lay  a  tax  upon  his  business.  The  taxing  of  trad- 
ers took  its  rise  from  this  mean  fellow.^ 

Confucius  does  not  allow  any  monopoly  profit.  If  there  is 
any,  a  tax  on  such  profit  is  necessary,  in  order  to  discourage 
the  monopolist  and  to  equalize  the  distribution  of  wealth. 

For  the  prevention  of  business  monopoly,  there  are  two 
great  principles,  the  exclusion  of  the  ruling  class  from  the 
economic  field  and  the  government  control  of  demand  and 
supply.    We  shall  discuss  them  in  the  following  chapters. 

The  Chinese  hate  business  monopoly.  According  to  the 
Law  Code  of  the  T/ing  Dynasty,  any  business  monopoly  is 
forbidden.  For  example,  people  are  not  allowed  to  open  a 
general  company  to  control  completely  a  branch  of  trade  in 
order  to  prevent  the  merchants  from  going  to  other  com- 
panies ;  nor  to  divide  up  territory  within  which  no  compet- 
itor can  stand ;  nor  to  control  transportation  either  by  ship- 
per or  by  carrier.  He  who  monopolizes  the  market  either 
as  a  seller  or  as  a  buyer  shall  be  punished  with  eighty  blows 
of  the  long  stick.  If  any  has  made  profit  through  such 
monopolistic  schemes,  that  profit  shall  be  regarded  as  booty, 
and  he  shall  be  punished  as  a  robber  according  to  the  amount 

of  booty.^ 

As  a  result  of  the  taxation  system,  however,  there  are 
some  businesses  mixed  with  the  element  of  monopoly.  They 
will  be  discussed  under  the  subject  of  taxation. 

1  Classics,  vol.  ii,  pp.  227-8.     Hence  the  Chinese  sometimes  use  the 
two  words,  conspicuous  mound,  for  the  word  monopoly. 

2  Ch.  XV. 


CHAPTER  XXVIII 

Exclusion  of  the  Ruling  Class  from  the  Economic 

Field 

i.  general  principles 

In  modern  times  the  socialist  advocates  modern  socialism 
against  capitalism  for  the  laborers.  In  ancient  times  the 
Confucians  advocated  Confucian  socialism  against  feudal- 
ism for  the  farmers.  These  two  doctrines  are  the  same  in 
principle,  because  in  the  ancient  days  feudal  lords  were  at 
the  same  time  capitalists,  and  the  farmers  were  themselves 
laborers.  But,  when  we  compare  these  two  doctrines,  Con- 
fucianism seems  to  go  further  than  modern  socialism.  There 
would  be  no  capitalist  under  either.  Under  Confucianism, 
the  important  means  of  production  should  belong  to  the 
public,  and  the  ruling  class  should  get  only  their  salary. 
When  the  official  class  got  their  salary,  however,  they  could 
accumulate  it  and  make  themselves  capitalists.  The  mod- 
ern socialist  does  not  exclude  salaried  officials  from  the 
gainful  occupations,  but  the  Confucians  excluded  them  en- 
tirely. We  may  say  that  the  difference  between  the  two 
is  due  to  the  fact  that  in  ancient  times  aristocracy  allowed 
the  officials  to  hold  their  office  by  hereditary  right,  and  that 
in  modern  times  it  is  not  so ;  hence  the  Confucians  neces- 
sarily excluded  them.  This  is  true,  and  it  would  be 
the  original  idea  of  Confucius.  But  Confucian  socialism 
means  still  more.  In  the  first  place,  Confucianism  does  not 
allow  aristocracy :  no  one  should  hold  office  by  hereditary 
right.  In  the  second  place,  even  after  the  abolition  of  feu- 
dalism and  aristocracy,  and  even  for  those  temporary  offi- 

543 


544 


THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 


cials,  this  principle  of  exclusion  was  applied.  From  this  it 
is  clear  that  Confucian  socialism  goes  further  than  modern 
socialism. 

At  the  time  of  Confucius,  feudalism  prevailed  over  the 
whole  empire.  The  feudal  princes  and  the  noble  families 
occupied  all  the  lands,  so  that  they  were  the  landlords. 
They  owned  also  a  great  number  of  cattle  and  many  other 
capital  goods,  so  that  they  were  the  capitalists.  There  was 
small  room,  indeed,  left  for  the  common  people.  More- 
over, they  could  oppress  the  people  as  they  would,  and  the 
condition  of  the  people  must  have  been  very  bad.  As  they 
had  all  the  political  powers  and  social  dignities,  if  they 
should  become  competitors  with  the  people  in  the  economic 
field,  they  would  take  all  the  profits,  and  the  people  could 
have  no  foothold  to  compete  with  them.  Then  the  people 
would  be  reduced  to  the  condition  of  actual  slavery.  There- 
fore, on  the  one  hand,  Confucius  concentrated  the  political 
power  in  an  absolute  monarchy,  and  denied  the  hereditar}^ 
right  of  office-holding,  in  order  to  destroy  feudalism  and  to 
transform  aristocracy  into  democracy.  On  the  other,  he 
excluded  all  officials  from  the  economic  field,  in  order  to 
give  full  opportunity  to  the  people. 

The  general  law  is  as  follows :  "  The  emperor  ought  not 
to  talk  about  whether  he  has  wealth  or  not;  the  feudal 
princes  ought  not  to  talk  about  whether  they  have  more 
wealth  or  less;  and  all  the  families  which  enjoy  a  public 
salary  ought  not  to  compete  with  the  people  for  profit."  ^ 
Promoting  the  character  of  the  ruling  class  to  a  higher 
ethical  standard,  taking  away  their  favorable  condition  and 
powerful  CO  Tipetition  from  the  economic  field,  and  giving  a 
great  chance  to  all  common  people, — these  are  the  objects 
of  this  principle.  It  has  been  a  great  scheme  of  social  re- 
form, and  its  tendency  has  been  toward  economic  equality. 

^  History  of  Latter  Han,  ch.  Ixxiii. 


EXCLUSION  OF  THE  RULING  CLASS  545 

I.  Exclusion  of  the  Emperor 

The  principle  of  exclusion  should  be  first  applied  to  the 
rulers, — the  emperor  and  the  feudal  princes.  In  the  Spring 
and  Autumn,  there  is  a  law  stating  that  the  emperor  should 
not  demand  anything  pecuniary  from  the  feudal  princes. 
When  an  emperor  asked  the  prince  for  anything,  he  was 
condemned  by  Confucius.  The  demand  for  money  was  con- 
demned most  of  all.  Since  the  emperor  had  the  taxes  from 
the  imperial  state  and  the  tribute  from  the  feudal  states,  he 
should  be  a  most  moderate  man  and  an  example  to  the  whole 
empire.  If  the  emperor  should  care  for  money,  it  would 
make  the  princes  avaricious,  the  great  officials  miserly,  and 
the  students  and  common  people  sly.  Therefore,  the  Record 
of  Rites  says :  *'  The  emperor  plants  only  gourds  and  flower- 
ing plants,  not  such  things  as  might  be  stored. 


'♦  1 


2.  Exclusion  of  the  Feudal  Princes 
In  the  Spring  and  Autumn,  there  is  a  condemnation 
of  the  fishery  of  Duke  Yin  of  Lu.  The  value  of  his  fishes 
amounted  to  one  hundred  catties  of  gold,  which  was  equal 
to  one  million  of  copper  money  in  the  Han  dynasty. 
Ho  Hsiu  states  that  he  should  not  leave  the  government  and 
compete  for  profit  with  the  people.  To  do  so  is  a  great 
shame,  and  not  fitting  to  a  ruler. 

3.  Exclusion  of  All  Salaried  Officials 

According  to  Confucius,  all  the  salaried  officials  should 
be  excluded  from  the  economic  field.     He  says: 

The  superior  man  does  not  take  all  the  profit,  but  leaves  it  for 
the  people.     It  is  said  in  the  Canon  of  Poetry: 

"There  shall  be  handfuls  left  on  the  ground, 
And  here  ears  nntoiiclied. 
For  the  benefit  of  the  widow." 

'  Li  Ki.  bk.  ix.  p.  433. 


546        THE  ECONOMIC  PRINCIPLES  Of  CONFUCIUS 

Hence,  when  a  superior  man  is  in  office  and  enjoys  its  emolu- 
ments, he  does  not  do  farming.^ 

Leaving  profit  for  the  people  is  the  fundamental  idea  of  this 
principle.  Its  aim  is  to  protect  the  weak  against  the  strong. 
Therefore,  when  Confucius  spoke  of  Tsang  Wen-chung,  a 
great  official  of  Lu,  he  condemned  him  as  wanting  in  virtue, 
because  he  made  his  concubines  weave  rush  mats  for  sale.^ 
The  "  Great  Learning  "  says :  "  He  who  keeps  horses  and 
a  carriage  does  not  look  after  fowls  and  pigs.  The  family 
which  keeps  stores  of  ice  does  not  rear  cattle  or  sheep."  * 
The  first  sentence  refers  to  the  one  who  is  beginning  to  be 
a  great  official ;  and  the  second,  to  the  great  official  and  min- 
ister.    Indeed,  none  of  the  officials  should  do  any  business. 

II.    THE    ESTABLISHMENT    OF    THESE    PRINCIPLES. 

I.  Example  of  Kung-yi  Hsiu. 
The  best  example  illustrating  the  exclusion  of  officials 
from  gainful  occupation  is  given  by  Kung-yi  Hsiu.  After 
taking  the  professorship  of  Lu,  he  became  the  prime  min- 
ister of  Duke  Mu  (145-176  A.  K.  or  407-376  B.  C).  He 
was  the  first  one  who  enacted  the  Confucian  theory  of  ex- 
clusion as  a  legal  law.  Under  his  administration,  the  sala- 
ried officials  were  not  allowed  to  compete  for  profit  with  the 
people.  When  some  one  gave  him  a  fish,  he  declined.  The 
giver  said,  "  I  have  heard  that  you  like  fish.  Why  do  you 
refuse  my  present  of  fish?"  "  Because  I  like  fish,  I  do  not 
accept  it,"  answered  the  minister.  ''  Now,  as  I  am  a  min- 
ister, I  am  able  to  buy  fish  myself.  If  I  should  accept  the 
fish  and  should  lose  my  position,  who  will  give  me  fish  in 
the  future?     For  this  reason  I  do  not  accept  it."     From  his 

^  Li  Ki,  bk.  xxvii,  p.  296, 

'  Classics,  vol.  v,  pt.  i,  p.  234. 

•  Classics,  vol.  i,  pp.  379-380. 


EXCLUSION  OF  THE  RULING  CLASS 


547 


Statement,  we  may  surmise  that  there  was  a  law  forbid- 
ding officials  to  accept  anything  from  any  person.  It  is 
stated :  "  He  who  has  received  one  great  thing  is  not  al- 
lowed to  take  the  small  one."  When  Kung-yi  Hsiu  ate  the 
edible  mallow,  he  pulled  it  in  his  garden  and  threw  it  away. 
When  he  had  seen  his  wife  weave  cloth,  he  burned  the  loom 
and  divorced  her.  He  said :  ''As  I  have  received  salary, 
why  should  I  snatch,  too,  the  profits  of  gardener  and 
weaver?"  ^  In  the  Historical  Record,  his  words  are  put  in 
this  way:  '*  How  can  the  farmer  and  the  working  girl  find 
a  place  to  sell  their  commodities?"  ^  The  essential  point  is 
that  the  officials  should  get  only  their  salary  and  leave  the 
whole  economic  field  free  for  the  common  people. 

2.  Statement  of  Tung  Chiing-shu 

In  412  ( 140  B.  C. ),  Tung  Chung-shu  gave  to  Han  VVu 
Ti  an  answer  that  has  become  famous.  In  criticizing  the 
social  conditions  of  his  time,  he  says  : 

Heaven  has  also  the  law  of  distribution.  For  example,  those 
animals  which  are  given  upper  front  teeth  have  no  horns ;  the 
bird,  having  wings,  has  only  two  legs.  This  means  that  those 
who  have  received  great  things  are  not  allowed  to  take  small 
ones.  In  ancient  times,  the  salaried  officials  did  not  live 
by  physical  labor,  and  did  not  touch  industrial  occupations. 
This  also  shows  that  those  who  have  received  great  things 
are  not  allowed  to  take  small  ones.  It  is  the  same  idea 
as  that  of  Heaven.  If  a  man  had  received  the  great  things 
and  took  the  small  ones  too,  even  Heaven  could  not  satisfy 
his  covetousness — how  could  man  satisfy  him?  This  is  the 
reason  people  suffer  in  poverty.  A  man  whose  personality 
is  already  honorable,  and  who  has  risen  to  high  position,  whose 
family,  in  addition,  is  already  rich,  who  receives  a  large  salary, 

*  Quoted  by  Tun^  Chung-shu,  History  of  Han.  ch.  Ivi. 
'  Historical  Record,  ch.  cxix. 


548        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

and  then  uses  his  powers  of  wealth  and  dignity  to  compete  for 
profit  with  the  people  who  are  below  him ;  how  can  the  people 
compete  with  him  ?  Therefore,  he  increases  the  number  of  his 
servants,  keeps  more  cattle,  extends  his  land  and  houses,  accu- 
mulates all  kinds  of  property,  and  saves  the  surplus.  He  pur- 
sues those  things  without  an  end,  in  order  to  oppress  the 
people.  Day  after  day,  and  month  after  month,  the  people  are 
robbed  by  him,  then  they  fall  into  great  poverty.  While  the 
rich  have  luxury  and  superabundance,  the  poor  are  in  griev- 
ous distress.  If  the  public  should  not  save  the  poor  from  dis- 
tress and  grievance,  the  people  could  have  no  pleasure  in  life. 
When  the  people  have  no  pleasure  in  life,  they  do  not  escape 
even  death;  how  can  they  escape  from  crime?  This  is  the 
reason  why  punishments  are  numerous  and  criminals  increase. 
Therefore,  the  famiHes  of  salaried  officials  should  get  only 
their  salaries,  and  should  not  compete  with  the  people  in  gain- 
ful occupations.  Thus  profits  may  be  equally  distributed  to 
the  people,  and  each  family  of  them  may  have  sufficient.  This 
is  the  natural  law  of  Heaven,  and  the  principle  of  antiquity  as 
well.  The  emperor  should  imitate  it  in  his  laws,  and  the  offi- 
cials should  practise  it  in  their  conduct. 

In  conclusion,  he  quotes  this  interesting  passage  froiTi  the 
Canon  of  Changes :  ''  Bearing  on  the  back  and  riding  in  the 
carriage  causes  robbers  to  come."  He  explains  that  "  riding 
in  the  carriage  "  refers  to  the  position  of  the  higher  class, 
"  bearing  on  the  back  "  to  the  business  of  the  lov^er  class. 
If  one  occupies  the  position  of  an  official,  and  takes  up  the 
business  of  the  common  people,  calamity  must  ensue. ^ 
These  statements  of  Tung  Chung-shu  have  had  great  influ- 
ence on  Confucian  socialism. 

3.  Laws  of  Different  Dynasties 
The  exclusion  of  officials  from  all  gain  has  been  car- 
ried into  actual  law  by  many  dynasties.     During  the  Tsin 

*  History  of  Han,  ch.  Ivi. 


EXCLUSION  OF  THE  RULING  CLASS 


549 


dynasty,  after  \Vu  Ti  reunited  the  whole  empire  (831,  or 
280  A.  D.),  he  decreed  that  the  princes  and  dukes  should  re- 
gard their  feudal  estates  as  their  families,  and  that  they 
should  not  have  lands  and  houses  in  the  imperial  capital  as 
private  property.  The  only  two  things  each  should  have 
were  the  residence  within  the  city  and  the  pasture  near  the 
suburb.  Then  he  made  the  following  limitation :  In  the 
capital,  the  princes,  the  dukes,  and  the  marquises  were  al- 
lowed to  have  one  residence.  If  their  residence  was  not  in 
the  city,  but  out  of  it,  it  was  allowed  to  remain  there.  Near 
the  capital,  those  who  had  a  great  feudal  estate  were  al- 
lowed to  have  one  thousand  five  hundred  acres  of  sub- 
urban land;  those  of  second  estate,  one  thousand  acres; 
and  those  of  small  estate,  seven  hundred  acres. 

There  was  also  a  limitation  upon  the  ownership  of  land 
by  officials.  The  amount  of  land  was  in  accordance  with 
their  rank.  To  the  first  rank  five  thousand  acres  were 
given;  to  the  second,  four  thousand  five  hundred  acres; 
to  the  third,  four  thousand  acres;  to  the  fourth,  three  thou- 
sand five  hundred  acres ;  to  the  fifth,  three  thousand  acres ; 
to  the  sixth,  two  thousand  five  hundred  acres;  to  the  sev- 
enth, two  thousand  acres;  to  the  eighth,  fifteen  hundred 
acres ;  and  to  the  ninth,  the  last,  one  thousand  acres.  More- 
over, their  descendants  had  the  hereditary  right  to  hold  the 
land,  and  the  limit  of  time  was  also  according  to  their  rank. 
The  longest  hereditary  right  came  down  through  nine  gen- 
erations, and  the  shortest  through  three  generations.' 

During  the  Tang  dynasty,  in  1175  (624  A.  D. ),  a  law 
was  enacted  that  all  the  families  which  had  received  salaries 
were  not  allowed  to  compete  for  gain  with  the  people." 

According  to  the  Law  Code  of  the  Ts'ing  Dynasty,  all  the 
officials  are  not  allowed  to  buy  land  and  houses  in  those 

'  History  of  Tsin,  ch.  xxvi. 

"  Old  History  of  Tang.  ch.  xlviii. 


550       THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

places  where  they  hold  their  office.  The  transgressor  shall 
be  beaten  with  a  small  stick  fifty  times.  He  shall  be  de- 
prived of  his  office,  and  his  land  or  house  shall  be  confis- 
cated.^ 

If  officials  lend  money  at  interest,  or  hold  property 
on  mortgage,  although  conforming  to  the  legal  rate  of  in- 
terest, they  shall  be  punished  with  eighty  blows  with  the 
long  stick.  If  they  take  interest  beyond  the  legal  rate,  such 
interest  shall  be  considered  as  a  bribe,  and  they  shall  be 
punished  accordingly.^ 

If  the  officials  buy  salt  from  the  government  and  sell  it 
to  the  people  for  the  sake  of  making  profit,  they  shall  be 
punished  with  one  hundred  blows  of  the  long  stick  and 
banished  to  another  part  of  the  same  province  for  three 
years.  Their  salt  shall  be  confiscated.^  All  these  laws 
keep  the  officials  from  competing  with  the  people. 

III.    CONCLUSION 

Hu  Yin  (died  1702,  or  1151  A.  D.)  gives  a  criticism  of 
this  exclusion  of  officials.     He  says : 

This  exclusion  is  a  good  institution,  inspiring  moderation  in  the 
officials.  In  ancient  times  the  government  employed  men  who 
were  fitted  to  their  position.  Then  they  held  their  office  with- 
out change,  sometimes  for  life,  and  sometimes  even  to  their 
descendants.  Their  salary  was  permanently  given.  ...  At 
that  time,  if  they  competed  with  the  people  for  profit,  they 
should  have  been  blamed.  In  modern  times,  as  the  men  are 
not  carefully  employed,  their  rise  and  downfall  are  uncertain. 
In  the  morning  they  may  enjoy  the  grain  of  the  imperial  gar- 
ner, but  in  the  evening  they  may  be  obliged  to  eat  at  home. 
Since  they  may  have  parents,  wives  and  children,  if  they  are 
not  superior  men  who  can  be  self -contented  in  a  poor  position, 
how  can  they  live  without  taking  up  gainful  occupations  ?     For 

*  Ch.  ix.  2  Cj-,_  xiv.  3  Ch.  xiii. 


EXCLUSIOX  OF  THE  RULIKG  CLASS  551 

example,  Lu  Huai-shen  [died  1267,  or  716  A.  D.]  was  a  min- 
ister of  the  Tang  dynasty.  But  when  he  died,  he  had  only  a 
servant  who  sold  himself  for  the  expense  of  his  funeral. 
What  can  the  other  officials  whose  position  is  lower  than  that 
of  minister  do? 

According  to  reason,  when  the  officials  take  their  office,  land 
should  be  given  to  them  in  accordance  with  their  rank.  Dur- 
ing their  employment,  they  have  salaries  in  return  for  their 
work;  even  if  they  are  dismissed,  they  have  land  by  which  to 
make  their  living.  Only  in  the  case  of  some  great  disgrace 
which  cannot  be  excused  will  their  land  be  taken  back  by  the 
government.  In  this  way  the  exclusion  of  the  officials  from 
gain  may  be  practised,  and  the  spirit  of  moderation  will  prevail.^ 

The  argument  of  Hu  Yin  is  very  reasonable,  and  it  holds 
true  in  modern  times,  because  feudalism  has  died  out.  But 
this  principle  of  excluding  officials  from  gainful  occupa- 
tion has  a  great  influence  on  Chinese  economic  life.  In 
China's  history  there  are  very  few  officials  who  accumu- 
lated a  great  fortune  in  any  way  they  could.  Modesty  and 
purity  were  the  general  spirit  of  the  officials.  .\s  they  did 
not  compete  with  the  common  people  for  profits,  the  people 
had  much  more  chance  to  compete  among  themselves,  and 
enjoyed  full  freedom  of  economic  activity  without  being 
in  unfavorable  competition  with  those  who  had  added 
power.  Very  recently,  public  sentiment  is  beginning  to  de- 
part from  this  principle.  Owing  to  the  international 
struggle  with  foreign  countries,  China  unfortunately  needs 
more  men  for  the  economic  war.  Formerly,  it  was  not 
suitable  for  the  officials  to  compete  with  the  people  at  home, 
but  to-day,  everyone  should  compete  with  the  foreigners 
abroad.  In  fact,  in  old  times  this  principle  was  established 
for  the  object  of  equal  distribution,  and  in  the  present  day 
it  is  going  to  be  renewed  for  the  object  of  large  production. 

*  Liettcral  Research,  ch.  ii. 


CHAPTER  XXIX 

Government  Control  of  Demand  and  Supply 

L  general  principles 

In  economic  society  there  are  two  sets  of  interests,  those 
of  producers  and  those  of  consumers.  But  nothing  more 
markedly  affects  the  interest  of  both  sides  at  once  than 
prices.  Therefore,  price  is  a  great  problem  for  society  as  a 
whole.  According  to  the  Confucian  theory,  the  govern- 
ment should  level  prices  by  the  adjustment  of  demand  and 
supply,  in  order  to  guarantee  the  cost  of  the  producer  and 
satisfy  the  wants  of  the  consumer.  Its  chief  aim  is  to  de- 
stroy all  monopoly,  so  that  the  independent  or  small  pro- 
ducer can  be  protected  on  the  one  side,  and  the  consumer  on 
the  other.  It  prevents  the  middleman  from  making  large 
profits,  and  gives  the  seller  and  buyer  full  gain.  Originally 
this  theory  was  purely  for  the  benefit  of  the  people  and 
brought  no  gain  to  the  budget  of  the  government.  In  later 
times  this  theory  became  a  financial  scheme  by  which  the 
government  made  a  large  profit.  However,  if  this  scheme 
is  carried  through  successfully,  it  is  a  benefit  to  society,  be- 
cause it  takes  away  profit  from  the  great  merchant  only 
and  lightens  the  taxation  of  everyone.  On  the  principle 
that  the  ruling  class  should  be  excluded  from  the  economic 
field,  the  conservative  Confucians  always  opposed  this 
scheme,  because  they  said  that  the  government  should  not 
compete  with  the  people  for  profit.  But  we  should  distin- 
guish two  divisions  in  the  budget  of  a  government, — one 
part  for  the  ruler  himself,  and  the  other  for  the  state  as  a 
552 


CONTROL  OF  DEMASD  AND  SUPPLY  553 

whole.  As  to  the  ruler  himself,  he,  of  course,  should  be 
excluded  from  any  gainful  occupation  and  should  not  com- 
pete with  the  people.  But  as  to  the  state  as  a  whole,  the  col- 
lective representation  of  the  people,  it  should  be  allowed  to 
get  its  revenue  in  the  most  convenient  way.  If  the  state 
competes  with  a  few  great  merchants  and  lessens  the  bur- 
den of  the  majority,  it  is  a  good  plan  for  meeting  the 
public  expense.  Moreover,  if  the  administration  is  as 
good  as  that  of  Liu  An  (i 267-1 331,  or  716-780  A.  D.), 
these  three  things  result :  the  state  gets  profit,  the  people 
constantly  enjoy  a  reasonable  price,  and  distribution  is 
nearly  equal.  But  such  an  administration  is  very  difficult 
Therefore,  Wang  Mang  and  Wang  An-shih  both  failed. 
This  theory  is  applied  to  all  commodities :  but  as  grain  and 
money  have  very  important  problems  which  are  treated  in- 
dependently, this  chapter  will  be  concerned  with  only  the 
price  of  commodities  in  general. 

When  we  discuss  the  theory  of  Confucianism,  we  must 
refer  to  the  Confucian  Bible.  The  Canon  of  Changes  says : 
*'  The  superior  man  diminishes  where  there  is  an  excess,  and 
increases  where  there  is  any  deficit,  in  order  to  bring  about 
a  level  according  to  the  nature  of  things."  ^  Excess  and 
deficit  here  relate  to  relations  between  supply  and  demand. 
In  the  former  case,  supply  should  be  diminished,  and  in  the 
latter  case,  supply  should  be  increased.  Both  cases  may 
arise  at  different  times;  or  at  the  same  time  but  in  different 
places ;  or  at  the  same  time,  in  the  same  place,  but  concern- 
ing different  goods.  It  is  the  task  of  the  superior  man  to 
adjust  demand  and  supply  so  as  to  keep  prices  on  a  level. 

In  the  Canon  of  History  there  is  a  passage  saying,  *'  To 
transport  the  commodities  from  where  there  was  plenty  to 
where  there  was  nothing  was  to  exchange  the  accumulated 
stores.     In  this  way  all  the  people  got  rice  to  eat  and  all 

»  Yi  King,  p.  286. 


554       ^^^  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

the  States  began  to  come  under  good  rule."  ^  This  commer- 
cial policy  was  the  deed  of  Yii.  When  there  is  plenty,  the 
supply  side  is  sufficient;  but  when  there  is  nothing,  the  de- 
mand side  is  unsatisfied.  Then  transportation  for  both 
sides  is  necessary.  For  instance,  in  the  mountain  region 
there  is  a  store  of  timber,  and  at  the  seaboard  there  is  a 
store  of  fish  and  salt ;  they  need  to  exchange  with  each  other. 
No  one  can  be  only  a  getter  from  others ;  he  must  be  also 
a  giver  to  others.  Hence  the  results  of  commerce  are  not 
only  that  the  people  get  sufficient  food,  but  also  that  all  the 
states  have  a  good  feeling  toward  one  another.  This  is  the 
theory  of  commerce. 

According  to  the  Official  System  of  Chon,  one  of  the 
functions  of  the  government  bank  is  to  control  the  demand 
and  supply  of  commodities.  When  commodities  cannot  be 
sold  because  supply  exceeds  demand,  the  bank  buys  them,  at 
their  market  price.  When  the  demand  for  them  rises  and 
exceeds  the  supply,  it  sells  them  at  their  original  price,  which 
has  been  carefully  written  on  a  label  of  each  commodity. 
In  the  first  case,  the  producer  is  benefited ;  in  the  second,  the 
consumer;  but  the  government  itself  does  not  make  money 
out  of  the  transaction.  The  buyers  must  get  a  certificate 
from  their  magistrate  before  the  commodities  are  sold  to 
them.  This  excludes  those  merchants  who  may  wish  to 
buy  cheap  goods  from  the  government  and  sell  them  again 
for  profit.  Generally,  after  the  price  has  fallen,  it  rises 
again;  hence,  the  government  should  supply  the  needs  of 
the  common  people  only.^ 

There  is  a  fragment  of  the  Doctrine  of  Music  which  was 
preserved  by  Liu  Te  (died  in  422,  or  130  B.  C),  that  says: 

The  emperor  selects  the  scholars  from  the  feudal  princes  in 
*  Classics,  vol.  iii,  pt.  i,  p.  78.  ^  Ch.  xv. 


CONTROL  OF  DEMAND  AND  SUPPLY 


555 


order  to  establish  the  "  five  equaHzations.'"  Therefore,  the 
markets  have  uniform  prices,  and  the  four  classes  of  people 
[the  students,  farmers,  artisans  and  merchants]  are  equal 
The  strong  cannot  oppress  the  weak  and  the  rich  cannot  take 
advantage  of  the  poor.  Then  public  finances  will  be  more 
than  sufficient,  and  benefit  will  cf>me  to  the  small  people.^ 

"  Five  equalizations  "  is  the  title  of  an  office  whose  func- 
tion is  to  equalize  market  prices.  According  to  Ma  Tuan- 
lin,  there  was  such  an  office  in  ancient  times.  Although  we 
cannot  find  out  its  history,  we  know  that  it  is  at  least  a 
theor}^  of  Confucianism. 

II.    SANG    HUNG-YANG 

T.  Systems  of  the  Equal  Transportation  and  the  Level 

Standard 

For  the  practice  of  controlling  demand  and  supply,  in  the 
Han  dynasty,  there  was  a  marvelous  financier  named  Sang 
Hung-yang  (421-472,  or  131-80  B.  C),  son  of  a  mer- 
chant. At  the  age  of  thirteen  (433)  he  became  a  favorite 
of  the  emperor  on  account  of  his  economic  genius.  In  436 
he  became  the  second  secretary  of  the  treasury,  and  he  be- 
gan to  practise  the  "  equal  transportation  "  scheme.  In  442 
he  was  made  secretary  of  the  treasury  to  control  the  gov- 
ernment monopoly  of  salt  and  iron.  He  saw  that,  owing  to 
the  independent  and  competitive  purchases  of  the  officials, 
the  price  was  raised;  and  that  by  the  old  way  of  sending 
products  as  the  taxes  to  the  capital  from  each  place,  the 
value  of  the  goods  sometimes  did  not  cover  even  the  cost 
of  wages.  Then  he  proposed  that  several  dozens  of  sub- 
ordinate officers  of  the  treasury  department  should  be  af)- 
pointed,  and  that  they  should  be  definitely  charged  with  the 
affairs  of  a  given  state  or  province.     Each  of  them  should 

'  History  of  Han,  ch.  xxiv,   (commentary). 


556 


THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 


appoint  subordinate  officers  in  each  district  to  establish  the 
office  of  '*  equal  transportation."  Then,  even  in  remote 
regions,  the  people  should  be  required  to  pay  their  taxes  in 
the  form  of  merchandise  which  was  formerly  exchanged  by 
the  merchants;  and  the  merchandise  should  be  exchanged 
among  the  officers  themselves.  All  the  merchandise  offered 
as  taxes  should  be  the  staple  products  of  the  locality,  so  that 
their  price  would  be  reasonable.  Then  the  government 
should  sell  them  in  other  places,  and  get  a  profit.  It  would 
save  the  cost  of  transportation  of  the  localities,  and  give  the 
remote  regions  convenience,  equal  to  their  neighborhood. 

In  the  capital,  the  office  of  "  level  standard  "  should  be 
established  to  control  all  the  transportation  of  the  whole 
empire.  All  the  articles  needed  by  the  officials  should  be 
supplied  by  the  treasury  department.  By  all  the  officers  of 
the  treasury  department,  the  commodities  of  the  whole  em- 
pire should  be  controlled.  When  their  price  was  high,  they 
should  be  sold,  and  when  it  was  low,  they  should  be  bought. 
In  this  way,  rich  merchants  could  not  make  great  profits, 
and  prices  would  return  to  the  normal  level.  Because  the 
price  would  be  artificially  kept  down,  this  office  should  be 
called  "  level  standard."  His  proposal  was  approved  by 
Han  Wu  Ti,  and  carried  into  practice.  During  the  reign 
of  Wu  Ti  the  expense  of  the  government  was  extraordinar- 
ily great.  But  by  the  schemes  of  equal  transportation  and 
level  standard,  the  public  finances  sufficed  without  increas- 
ing taxes.^ 

^  The  policy  of  controlling  demand  and  supply  by  the  state  was 
worked  out  very  successfully  by  Kuan  Tzu  (died  93  B.  K.  or  644  B.  C). 
His  work  contains  several  books  dealing  with  this  question,  but  he  uses 
the  terms  "  lightness  and  heaviness "  instead  of  demand  and  supply. 
Lightness  means  supply  over  demand,  and  heaviness  means  demand 
over  supply.  His  policy  may  be  summed  up  in  a  few  words :  the  gov- 
ernment should  control  the  ratio  between  money  and  commodities  by 
issuing  and  redeeming  money,  in  order  to  level  rich  and  poor,  and  to 
make  the  state  the  dominant  power  in  economic  life.  His  theory  is 
like  state  socialism,  and  he  was  the  real  precursor  of  Sang-Hung-yang. 


CONTROL  OF  DEMAND  AND  SUPPLY  557 

It  would  be  hardly  accurate  to  say  that  Sang  Hung-yang 
was  a  strict  Confucian,  but  as  he  was  born  (421 )  after  Con- 
fucianism had  been  made  a  state  religion  (412),  he  was  a 
Confucian  in  the  broad  sense.*  In  471  (81  B.  C),  there 
was  a  debate  between  him  and  the  representatives  of  the 
people  on  the  abolition  of  equal  transportation.  His  oppo- 
nents were  good  scholars  and  strict  Confucians.  Their 
argument  was  based  on  the  ethical  teaching  that  the  govern- 
ment should  not  take  up  commercial  business,  and  they  were 
in  favor  of  agriculture  rather  than  industry.  But  Confu- 
cianism is  a  great  philosophy  which  gives  its  principles  to 
both  sides,  so  that  Sang  Hung-yang  based  his  argument 
also  on  Confucianism.  His  statement  was  in  favor  of  in- 
dustry, but  not,  however,  against  agriculture.  He  said  that 
where  there  is  plenty  of  rich  land  but  not  plenty  of  food, 
the  improvement  of  tools  is  needed ;  and  where  there  is  a 
great  amount  of  natural  resources  but  not  a  great  amount 
of  wealth,  commerce  and  industry  are  needed.  All  the 
staple  commodities  of  different  places  are  waiting  for  the 
manufacture  of  artisans,  and  for  the  exchange  of  merchants. 
According  to  the  ancient  sages,  agriculture  is  not  the  only 
subject  of  political  economy.  Therefore,  the  representatives 
did  not  win  the  debate  and  this  system  was  not  abolished. 

Sang  Hung-yang's  system  encountered  much  popular  op- 
position, but  it  was  justifiable.  From  the  social  aspect,  it 
took  away  profits  from  rich  merchants  and  helped  the  poor 
in  time  of  need.  From  the  economic  aspect,  it  saved  the 
expense  of  sending  goods  from  each  place  to  the  capital  and 
made  great  revenue.  Moreover  at  that  time  there  was  a 
military  struggle  for  national  expansion  so  that  the  rev- 
enue from  the  system  of  equal   transportation  was  neces- 

*  Huan  K'lian  calls  him  a  widely  and  thoroughly  educated  man.     His 
son,  Sang  Ching,  was  a  Confucian  scholar. 


558        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

sary.  If  we  judge  Sang  Hung-yang  from  the  viewpoint  of 
nationalism,  it  was  he  who  enabled  Han  Wu  Ti  financially 
to  expand  the  Chinese  empire.  His  services  to  the  nation 
as  a  whole  were  great  and  lasting.  He  was  the  first  one 
to  practise  state  socialism  successfully  on  a  gigantic 
scale;  ^  but  his  system  died  out  after  his  death,  because  no 
one  was  able  to  administer  such  a  plan. 

III.    WANG    MANG 

I.  System  of  the  Five  Equalizations 
From  the  phrase,  "  five  equalizations,"  in  the  Doctrine  of 
Music,  Wang  Mang  established  an  office  called  *'  five  equal- 
izations." Its  purpose  was  to  equalize  the  mass  of  the 
people  and  do  away  with  monopoly.  In  561  (10  A.  D.), 
in  the  capital,  three  bureaux  were  opened;  and  in  each  of 
the  five  chief  cities  there  was  one  bureau.  In  each  bureau 
there  were  five  officers  in  the  trade  department  and  one 
officer  in  the  banking  department.  During  the  second 
month  of  each  season  the  controller  of  markets  in  each 
bureau  fixed  the  prices  for  the  three  grades  of  each  com- 
modity. Despite  differences  in  other  places,  each  bureau 
used  its  own  fixed  prices  as  the  "  market  level."  When  the 
people  could  not  sell  their  commodities,  after  the  officers 
examined  the  facts,  the  commodities  were  bought  by  the 
bureau  at  the  cost  price,  in  order  to  prevent  loss  to  the 
producers.  When  the  price  was  higher  than  the  level  by 
one  penny,  the  bureau  sold  its  commodities  at  the  level  price. 
When  the  price  was  lower  than  the  level,  it  left  the  people 
to  exchange  commodities  among  themselves,  in  order  to 
prevent  speculators  from  storing  the  commodities.  But 
Wang  Mang  did  not  succeed.^ 

'  Historical  Record,  ch.  xxx ;  History  of  Han,  ch.  xxiv. 
'  History  of  Han,  ch.  xxiv. 


CONTROL  OF  DEMASD  AND  SUPPLY  ^^t^ 

IV.    LIU    AN 

During'  the  Tang  dynasty,  Liu  An.  commissioner  of 
transportation,  was  the  greatest  financier.  \n  his  time 
there  was  a  great  rebellion  (1306-1313,  or  755-762  A.  D.) 
The  population  was  diminished  over  two-thirds.  Many  dis- 
tricts were  occupied  by  military  commanders  who,  being 
somewhat  independent,  and  opposed  to  the  central  gov- 
ernment, sometimes  broke  out  in  rebellious  war.  The  gov- 
ernment got  only  a  small  revenue :  but  with  rebellions 
within  the  country,  and  barbarian  wars  on  the  boun- 
dary, it  had  to  defray  great  expenditures.  The  happy  out- 
come of  this  bad  condition  was  due  entirely  to  Liu  An 
Basing  his  operations  on  the  system  of  level  standard,  he 
controlled  the  natural  resources,  drove  out  the  great  mer- 
chants, fixed  the  prices  of  commodities,  and  made  great 
profit  for  the  government.  Without  increasing  taxation, 
he  made  revenue  sufficient  to  meet  expenditures.  This  was 
his  part  in  the  restoration  of  the  Tang  dynasty. 

I.  His  Administration  of  the  Equal  Transportation 
Liu  An  was  a  great  statesman.  He  thought  that  taxa- 
tion is  based  on  social  ability;  hence,  his  financial  policy 
began  on  the  social  side:  love  for  the  people  was  the  first 
thing.  Before  his  administration,  magistrates  had  forced 
the  rich  to  take  charge  of  transportation  and  communica- 
tion, and  forced  them  to  pay  beyond  the  requirements  of 
taxation.  Then  the  people  became  brigands  and  pirates  for 
over  ten  years.  But  Liu  .An  began  to  use  the  government 
ships  for  transix)rtation  and  to  employ  clerks  for  communi- 
cation, anrl  he  abolished  all  unlawful  imposts. 

Tn  different  provinces  he  established  local  stations.  All 
these  stations  established  numerous  postoffices  anrl  em- 
ployed the  best  runners  there  at  high  wages.  The  prices 
and  other  circumstances  of  the  four  corners,  even  from  a 


S6o 


THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 


great  distance,  were  known  to  Liu  i\n  in  not  over  four  or 
five  clays.  Hence  he  was  able  to  determine  the  weight  of 
all  commodities  and  keep  their  prices  in  normal  relation. 
Thus  he  made  great  profit  for  the  government,  and,  in  addi- 
tion, the  people  were  benefited,  as  the  producer  did  not 
sufifer  from  too  low  a  price,  or  the  consumer  from  one  that 
was  too  high. 

Liu  An  thought  that  a  good  government  should  show  its 
love  for  its  people  not  by  bounty,  but  by  the  adjustment  of 
their  production.  In  normal  years  he  bought  commodities 
at  the  market  price,  and  in  bad  years  he  sold  them  for  the 
relief  of  the  people.  On  an  average,  the  commodities  were 
annually  increased  one-tenth,  and  he  wisely  controlled  them 
in  accordance  with  the  situations.  He  appointed  of^cials  in 
charge  of  the  local  stations.  Every  ten  days  and  every 
month  they  reported  the  weather  conditions  of  the  different 
districts.  When  they  saw  signs  of  a  bad  year,  they  told 
him  beforehand  how  much  taxation  should  be  exempted 
and  in  which  month,  and  how  many  commodities  should  be 
sold.  In  due  time,  without  waiting  for  the  demand  of  the 
magistrate,  he  satisfied  the  wants  of  the  people  with  the 
exact  supply.  Therefore,  the  people  never  actually  fell  into 
bad  conditions  and  the  population  was  increased.  When  Liu 
An  was  made  commissioner  of  transportation  (1311  A.  K.), 
the  number  of  families  was  less  than  two  millions  (1,933,- 
125),  but  in  his  last  year  (1331  A.  K.)  it  was  nearly  four 
millions  (3,805,076).  However,  the  increase  of  population 
was  under  his  administration  only ;  under  other  administra- 
tions there  was  no  increase.  He  increased  the  revenue  also. 
In  his  first  year  the  annual  revenue  was  not  more  than  four 
millions  of  strings,  but  in  his  last  year  it  was  more  than 
ten  millions. 

It  was  argued  that  he  should  simply  give  commodities  to 
the  people  instead  of  selling  them  at  a  cheap  price.      His 


CONTROL  OF  DEMAND  AND  SUPPLY  561 

theory  in  reply  was  that  prevention  was  better  than  cure. 
In  free  distribution,  there  would  be  two  disadvantages 
First,  if  the  distribution  was  too  small,  it  could  not  save 
their  lives,  or  if  it  saved  many,  it  would  exhaust  the  revenue 
and  bring  about  increase  of  taxation.  Second,  distribution 
was  near  to  injustice.  The  officers  would  be  corrupted,  and 
the  strong  would  get  more  than  the  weak;  and  this  could 
not  be  prevented  even  by  punishment  by  death.  But  in  sale, 
there  were  two  advantages.  First,  in  the  places  where  bad 
crops  occurred,  although  the  inhabitants  were  in  want  of 
food,  they  possessed  other  products.  Selling  the  food  supply 
at  a  low  price  to  exchange  their  commodities,  then  trans- 
porting these  commodities  to  places  where  the  season  was 
good,  and  selling  them,  or  using  them  by  the  government, 
these  schemes  would  make  public  finances  sufficient.  Sec- 
ond, it  brought  a  great  supply  of  food  into  the  market,  and 
let  the  people  sell  and  transport  it  to  a  great  extent.  When 
the  retailers  came  into  the  villages,  those  poor  people  who 
could  not  go  to  the  market  could  indirectly  get  the  benefit, 
and  escape  hunger.  Moreover,  following  the  system  of 
''constantly  normal  granary,"  Liu  An  kept  in  storage  a  great 
amount  of  rice — in  each  prefecture  the  average  storage  of 
rice  was  three  million  bushels.  Indeed,  he  was  a  great 
statesman,  for  the  people  as  well  as  for  the  state. 

The  chief  article  from  which  Liu  .\n  got  large  revenue 
was  salt.  In  his  time,  western  China  consumed  the  salt  of 
the  Shansi  province,  which  was  controlled  by  the  treasury 
department;  and  eastern  China  consumed  that  of  the  sea, 
which  was  controlled  by  him.  He  thought  that  by  salt, 
which  is  necessary  to  people,  a  large  revenue  could  be  ob- 
tained. At  the  places  where  salt  was  produced  he  created 
the  officials  of  salt ;  and  in  all  other  places  there  were  no 
such  officials,  because  he  thought  that  too  many  officials 
would  trouble  the  people.     According  to  the  times,  he  gave 


1562        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

different  orders  to  teach  the  people  how  to  produce  salt.  As 
salt  was  a  government  monopoly,  the  officials  bought  salt 
from  the  people  who  produced  it  and  sold  it  to  the  mer- 
chants, who  were  allowed  to  go  anywhere.  Formerly,  the 
magistrates  taxed  the  salt  when  the  merchants  transported 
it  through  their  passes.  Liu  An  abolished  such  a  bad  cus- 
tom, and  salt  enjoyed  free  trade.  Doing  away  with 
smuggling,  he  especially  appointed  able  officials  to  the  local 
stations  without  touching  the  magistrates. 

He  transported  the  government  salt  to  those  regions 
which  were  far  away  from  the  salt-producing  places,  and 
stored  it  up.  When  merchants  did  not  come  to  those  places, 
and  the  price  of  salt  was  high,  he  sold  it  at  a  low  price.  This 
scheme  was  called  "  constantly  normal  salt."  The  govern- 
ment made  great  profit,  and  the  people  did  not  suffer  from 
a  high  price.  When  the  price  of  salt  at  the  capital  was 
high,  Liu  An  was  ordered  by  the  emperor  to  transport 
there  thirty  thousand  bushels.  It  came  from  Yangchow 
(Kiangsu)  to  Sian  (Shensi)  in  only  forty  days,  and  the 
public  thought  it  miraculous. 

In  the  first  year  of  Liu  An's  administration  (1311),  the 
annual  profit  from  salt  amounted  to  six  hundred  thousand 
strings,  but  in  his  last  year  (1330)  it  was  more  than  ten 
times  this  amount.  In  1330,  out  of  the  total  revenue  of 
twelve  million  strings,  the  profit  from  salt  was  over  six  mil- 
lions. The  public  finances  were  sufficient,  but  the  people 
bore  no  burden.  Comparing  it  with  the  salt  of  Shansi,  the 
profit  there  was  only  about  eight  hundred  thousand  strings, 
and  the  price  was  also  higher  than  that  of  the  salt  of  the  sea. 

In  the  time  of  Liu  An,  the  native  products  of  the  southern 
provinces  which  were  offered  as  a  sort  of  taxation  were 
heavy,  rough,  cheap  and  defective.  Liu  An  thought  that 
even  if  they  were  transported  to  the  capital,  it  could  not 
cover  the  cost.     Then  he  stored  them  up  in  the  valley  of 


CONTROL  OF  DEMAND  AND  SUPPLY 


163 


Yangtze,  and  exchanged  them  for  copper,  lead,  fuel  and 
charcoal.  The  annual  coinage  was  more  than  one  hundred 
thousand  strings.  This  shows  his  economic  policy.  On  the 
one  hand,  native  products  became  more  useful,  and  on  the 
other,  circulation  of  money  was  made  sufficient. 

His  administration  was  remarkable,  partly  because  of 
his  own  genius,  and  partly  because  of  his  choice  of 
men.  He  selected  several  hundred  of  the  best  scholars  to 
have  charge  of  the  business,  because  he  said  that  scholars 
care  for  fame  more  than  for  money.  Among  his  subordi- 
nates, even  at  a  great  distance,  no  one  deceived  him.  After 
he  died,  these  also  became  famous  financiers  for  a  period  of 
twenty  years.     This  shows  the  wisdom  of  Liu  An.' 

V.    WANG    AN-SHIH  " 

I.  Plan  of  Equal  Transportatiun 
Under  the  Sung  dynasty,  in  1620  (1069  -^-  D.),  Wang 
An-shih  revived  the  system  of  equal  transportation.  It  was 
proposed  because,  owing  to  the  old  custom,  the  officials  of 
public  finance  did  not  know  the  relation  between  the  central 
government  and  local  conditions,  and  they  were  unable  to 
fill  the  deficiency  with  the  surplus.  The  amount  of  stipu- 
lated annual  contril^ution  of  products  by  the  provinces  to  the 
capital  was  fixed  by  rule.  It  was  not  allowed  to  be  more 
than  the  fixed  amount,  even  in  a  year  of  {)lenty.  and  when 
transportation  was  easy ;  nor  could  it  be  less,  even  in  bad 
years  and  at  a  high  i)rice.  In  the  latter  case,  the  provinces 
contributed  their  commodities  at  a  cost  two-fold  or  five-fold 
the  normal  price;  but  when  they  reacherl  the  capital,  they 

'  Keiv  IJistory  of  Tattg.  ch.  cxli.x  ;  etc. 

2  From  this  section  and  the  following  statements  (  pp.  5H9-94,  (ibj, 
673-6),  the  reader  will  see  that  the  article  "  How  Socialism  Failed 
in  China,"  written  by  General  Homer  Lea,  published  in  Van  Norden's 
Magacinc   (September  and  October,   1908),  is  incorrect. 


564       THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

perhaps  realized  only  half  of  their  value.  This  simply  en- 
abled the  great  capitalists  and  merchants  to  take  advantage 
of  the  embarrassment  of  the  government  and  people  and  to 
exercise  arbitrary  power  in  the  markets.  Now,  the  com- 
missioner of  transportation  was  charged  with  all  the  reve- 
nue of  the  six  rich  provinces ;  his  function  was  to  deal  with 
the  taxes  of  tea,  salt,  alum  and  liquor;  and  from  him  came 
the  greater  part  of  the  public  revenue.  Hence  he  should  be 
trusted  with  money  and  goods,  and  he  should  dispose  of 
them  according  to  the  financial  condition  of  the  six  prov- 
inces. Among  all  commodities  which  were  purchased  by 
the  government,  or  were  offered  to  the  government  as 
taxes  and  contribution,  he  should  be  allowed  to  make  sub- 
stitution and  exchange.  When  their  price  in  one  place  was 
high,  let  him  get  them  from  other  places  where  their  price 
was  low.  When  their  transportation  was  not  convenient, 
let  him  exchange  them  in  the  neighborhood,  instead  of  at 
a  distance.  He  should  be  informed  beforehand  of  the 
amount  needed  for  the  annual  expenses  of  the  central  gov- 
ernment; thus  he  might  conveniently  buy  or  hold  or  ex- 
change the  commodities,  as  circumstances  demanded.  In 
this  way  the  public  would  control  the  demand  and  supply, 
in  order  to  facilitate  transportation,  to  reduce  expense,  to 
remove  heavy  taxes,  and  to  relax  the  burden  on  the  farmers. 
Then  the  public  finances  would  suffice,  and  the  wealth  of  the 
people  would  not  be  exhausted.  This  proposal  was  approved 
by  the  emperor,  and  the  commissioner  of  transportation, 
named  Hsieh  Hsiang,  was  charged  with  the  task  of  carrying 
into  effect  this  system.  The  emperor  granted  him  five  mil- 
lion strings  of  cash  and  three  million  bushels  of  rice  for  the 
development  of  it,  but  the  plan  was  a  failure. 


CONTROL  OF  DEMAND  AND  SUPPLY  565 

2.  System  of  Exchanges  ^ 

In  imitation  of  the  system  of  level  standard,  Wang  An- 
shih  established  the  "  exchange."  It  was  first  proposed  by 
a  man  of  the  common  people  named  Wei  Chi-tsung.  He 
said  that  the  capital  was  the  center  of  all  commodities ;  but 
the  market  had  no  regular  price,  and  whether  things  were 
dear  or  cheap  depended  only  upon  speculation.  A  good 
government  should  be  able  to  take  something  from  the  rich 
and  give  it  to  the  poor.  Now,  as  rich  men  and  great  fami- 
lies, taking  advantage  of  the  emergencies  of  the  people,  made 
large  profits,  doubling  their  capital  many  times,  wealth  was 
accumulated  by  a  few,  and  public  finances  were  also  made 
insufficient.  Money  should  be  given  to  the  commodity-tax- 
ing bureau  to  establish  a  constantly  normal  exchange.  For 
this  undertaking,  financial  officers  should  be  selected ;  and  to 
carry  out  the  business,  good  merchants  should  be  employed. 
They  should  know  the  market  price  of  all  commodities. 
When  things  were  cheap,  the  exchange  should  buy  them  at 
a  higher  price;  and  when  they  were  dear,  it  should  sell  them 
at  a  lower  price.  Then  the  profit  would  go  to  the  state.  In 
1623  (1072  A.  D.)  this  proposal  was  carried  out.  In  the 
capital  an  "exchange"  was  established  with  1,870.000 
strings  of  cash  as  its  fund.  Over  the  whole  empire  there 
were  numerous  branches  established  for  a  short  period  of 
time. 

In  the  capital,  the  general  rules  of  the  exchange  were  as 
follows:  The  guild-merchants  and  brokers  could  be  mer- 
chants and  brokers  of  the  exchange ;  but  the  merchants  should 
pledge  themselves  by  property,  either  their  own  or  borrowed, 
and  five  men  should  join  together  as  a  guarantee.  When  the 
l)eople  could  not  sell  their  goods,  they  were  allowed  to  sell 
them  at  the  exchange.     After  the  bargain  between  the  seller 

*  Sec  also  infra,  pp.  50-2-3. 


-66        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

and  the  merchant  was  settled  at  a  reasonable  price,  according 
to  the  amount  of  commodity  purchased  by  the  merchant,  the 
price  was  paid  in  money  by  the  exchange ;  if  the  seller  wished 
to  exchange  his  commodity  for  government  commodities,  it 
was  allowed.  By  a  pledge  of  salable  goods,  people  were  al- 
lowed to  borrow  money  or  to  buy  government  commodities 
on  credit,  in  accordance  with  the  value  of  their  pledge ;  the 
rate  of  interest  was  lo  per  cent  for  a  half  year,  or  double  that 
rate  for  a  whole  year.  All  kinds  of  goods,  which  might  not 
be  immediately  wanted  by  the  merchants  but  could  be  stored 
up  and  exchanged  in  the  future,  should  be  bartered  for  or 
bought  by  the  officers,  and  should  be  sold  at  the  market 
price  without  any  effort  to  make  a  special  profit.  When  the 
officials  wanted  anything,  they  should  buy  it  from  the  ex- 
change. When  these  rules  were  framed,  there  was  an  article 
saying  that  if  the  capitalists  should  make  unjust  profit  by 
monopolistic  schemes  and  injure  this  new  law,  such  a  pro- 
ceeding should  be  investigated  by  the  exchange  and  pun- 
ished by  the  treasury  department,  but  the  emperor  struck 
out  this  article. 

As  to  the  capital  of  the  exchanges,  the  exchange  of  the 
capital  city  had  1,870,000  strings.  In  the  same  year  ( 1623) , 
in  the  military  station  of  Chent'ao  (Kansu)  an  exchange 
was  established  with  capital  of  about  500,000  strings.  In 
1624,  the  exchange  of  Hangchow  (Chekiang)  was  estab- 
lished, with  200,000  strings.  In  1625,  the  emperor  granted 
a  loan  of  2,000,000  strings  to  the  exchange  of  the  capital 
city.  In  1626,  to  the  exchange  of  Canton  (Kuangtung) 
were  given  100,000  strings;  and  to  that  of  Yiinchow  (Shan- 
tung), 300,000  strings.  In  1627,  to  the  exchange  of  Hsiho 
(Kansu)  were  given  150,000  strings.  In  1628,  the  amount 
of  capital  in  the  exchange  of  the  capital  city  was  fixed  at 
7,000,000  strings;  if  this  amount  diminished,  it  should  be 
filled  up  by  the  interest  annually  received.     When  the  ex- 


CONTROL  OF  DEMAND  AND  SUPPLY  567 

change  borrowed  money  from  the  private  treasury  of  the 
emperor,  the  annual  interest  was  20  per  cent.  In  fact,  the 
capital  of  the  exchanges  was  very  large.' 

The  system  of  the  exchange  had  three  characteristic  fea- 
tures :  the  loan  bank,  the  pawn  shop,  and  the  market  place. 
We  shall  discuss  the  first  two  characteristics  under  the  sub- 
ject of  government  loan,  and  here  discuss  the  last  one  only. 
The  exchange  was  administered  by  Lii  Chia-wen,  but  he 
was  not  successful.  Wang  An-shih  tried  in  every  way  to  imi- 
tate Sang  Hung-yang  and  Liu  An,  but  he  did  not  succeed  be- 
cause he  had  no  such  men  as  Sang  and  Liu.  From  the  side 
of  the  people,  the  exchange  caused  a  great  deal  of  trouble. 
Buying  at  a  cheap  price  and  selling  at  a  dear  one,  it  monopo- 
lized the  market.  Its  original  idea  was  to  do  away  with  the 
monopoly  of  the  rich,  but  its  real  result  was  to  ruin  even 
the  occupations  of  the  poor.  It  sold  even  ice.  the  sesame, 
and  fruits;  hence  the  price  was  high,  and  it  was  hard  for 
retailers  to  make  a  living.  But  from  the  side  of  the  govern- 
ment, it  did  not  make  very  much  money.  In  1627,  when 
the  exchange  had  been  established  about  five  years,  its  total 
interest  and  profit  from  these  three  features  amounted  to 
only  1,332,000  strings.  At  that  time  the  merchants  did  not 
come  to  the  capital  city,  and  passed  through  other  ways  with 
their  commodities,  because  they  thus  escaped  the  compulsory 
power  of  the  exchange,  forcing  them  to  sell  their  goods  at 
the  exchange.  Therefore,  the  small  gain  of  the  exchange 
did  not  cover  even  the  loss  of  the  commodity  tax.  In  1637 
this  system  was  abolished;  in  1648  it  was  reestablished; 
and  in  1679  (1128  A.  D.)  it  was  finally  abolished  because 
its  gain  did  not  cover  its  expense. 

•  These  figures  arc  collected  from  the  History  of  Sutig  uh.  clxxxvi). 
and  the  others,  not  given  by  history,  are  not  to  be  found  out. 


CHAPTER  XXX 

Government  Control  of  Grain 

i.  equalizing  the  price  of  grain  ^ 

As  a  food  supply  has  been  necessary  for  human  life 
through  all  ages,  and  China  has  been  an  agricultural  coun- 
try for  thousands  of  years,  the  grain  problem  has  been  one 
of  the  greatest  problems  in  its  economic  history.  The  the- 
ories and  laws  concerning  grain  are  numerous.  We  shall 
select  only  the  most  important  of  them.  On  the  whole,  the 
policy  of  equalizing  the  price  of  grain  is  of  chief  importance, 
because  it  affects  the  interest  of  the  whole  society. 

The  policy  of  equalizing  the  price  of  grain  is  very  old. 
x\ccording  to  the  OMcial  System  of  Chou,  the  superintend- 
ent of  grain  (ssu  chia)  looked  around  the  fields  and  deter- 
mined the  amount  of  grain  to  be  collected  or  issued,  in  ac- 
cordance with  the  condition  of  the  crop.  He  equalized  the 
food  of  the  people,  fulfilling  the  deficit  of  their  demand  and 
adjusting  their  supply.'  This  policy  was  also  carried  out 
by  Kuan  Tzu  and  Fan  Li.  But  Li  K'o  was  the  first  one  to 
give  special  emphasis  to  it  and  to  establish  complete  rules. 
Therefore  we  shall  take  up  his  rules  first. 

I .  Rules  of  Li  K'o 
When  Li  K'o  became  the  minister  of  Wei,  he  said  that  if 
the  price  of  grain  were  too  high,  it  would  hurt  the  con- 

*  This  is  a  particular  phase  of  government  control  of  demand  and 
supply. 
«  Ch.  xvi. 
568 


GOVERNMENT  CONTROL  OF  GRAIN  569 

sumers,  and  that  if  it  were  too  low,  it  would  hurt  the  farm- 
ers. If  the  consumers  were  hurt,  the  people  would  emi- 
grate, and  if  the  farmers  were  hurt,  the  state  would  be 
poor.  The  bad  results  of  a  high  price  and  a  low  price  are 
the  same.  Therefore,  a  good  statesman  would  keep  the 
people  from  injury  and  give  more  encouragement  to  the 
farmers.  After  describing  the  bad  condition  of  the  farm- 
ers,^ he  gives  the  following  law  for  equalizing  the  price  of 
grain : 

Those  who  want  to  equalize  the  price  of  grain  must  be 
careful  to  look  at  the  crop.  There  are  three  grades  of  good 
crops:  the  first,  the  second  and  the  lowest.  In  an  ordinary 
year,  one  hundred  acres  of  land  yield  one  hundred  fifty 
bushels  of  grain.  In  the  first  grade  of  good  crop,  the 
amount  is  fourfold, — that  is,  one  hundred  acres  yield  six 
hundred  bushels.  Throughout  one  year,  a  family  of  five 
persons  needs  two  hundred  bushels  for  their  living,  so  that 
they  have  a  surplus  of  four  hundred  bushels.  The  govern- 
ment should  buy  three  hundred  bushels  from  them,  leaving 
them  a  surplus  of  one  hundred  bushels.  In  the  second 
grade  of  good  crop,  the  amount  of  grain  is  threefold, — that 
is,  one  hundred  acres  yield  four  hundred  fifty  bushels.  The 
family  would  then  have  a  surplus  of  three  hundred  bushels.* 
The  government  should  buy  two  hundred  bushels,  leaving 
them  one  hundred  bushels.  In  the  lowest  grade  of  good 
crop,  the  amount  is  twofold, — that  is,  three  hundred  bushels. 
The  family  would  then  have  a  surplus  of  one  hundred 
bushels.  The  government  should  buy  fifty  bushels,  and 
leave  them  the  other  half.  The  purchase  of  the  government 
is  for  the  purpose  of  limiting  the  supply  according  to  the 

•  See  supra,  p.  268. 

'  That  is,  of  course,  speaking  roughly.  According  to  an  exact  calcu- 
lation, there  are  only  250  bushels  remaining,  since  the  family  itself  con- 
sumes 200  bushels. 


z^yo        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

amount  demanded  by  the  people,  and  it  should  be  stopped 
when  the  price  is  normal.  This  policy  will  prevent  the  price 
of  grain  from  falling  below  the  normal  and  keep  the  farmers 
from  injury. 

There  are  also  three  grades  of  famine:  the  great  famine, 
the  middle  famine  and  the  small  famine.  During  the  small 
famine,  one  hundred  acres  yield  two-thirds  as  much  grain 
as  in  the  ordinary  year, — that  is,  one  hundred  bushels.  The 
government  should  then  sell  at  the  normal  price  what  it  has 
bought  in  the  lowest  grade  of  good  crop.  During  the 
middle  famine,  the  hundred  acres  yield  one-half  as  much 
grain  as  in  an  ordinary  year, — that  is,  seventy  bushels.  The 
government  should  now  sell  what  it  has  bought  in  the 
second  grade  of  good  crop.  During  the  great  famine,  the 
amount  of  grain  is  only  one-fifth  of  what  it  is  in  an  ordi- 
nary year, — that  is,  thirty  bushels.  The  government  should 
sell  what  it  has  bought  in  the  first  grade  of  good  crop. 
Therefore,  even  if  famine,  flood  and  drought  should  occur, 
the  price  of  grain  would  not  be  high,  and  the  people  would 
not  be  obliged  to  emigrate.  This  would  come  about  because 
the  government  takes  the  surplus  of  good  crops  to  fill  the 
insufficiency  of  bad  years.  In  other  words,  the  government 
controls  the  excess  of  supply  in  a  good  year  in  order  to  meet 
the  demand  in  a  bad  year. 

The  policy  of  Li  K'o  is  for  the  benefit  of  both  society  as 
a  whole  and  the  agricultural  class.  His  main  idea  is  for  the 
welfare  of  the  people  only,  and  not  for  the  finances  of  the 
state.  Therefore,  he  is  the  real  Confucian  who  stands  on 
the  side  of  the  people  and  represents  the  purely  economic 
doctrine  in  a  practical  scheme.  When  his  scheme  was  car- 
ried out  in  Wei,  he  not  only  made  the  people  rich,  but  also 
made  the  state  strong.' 

*  History  of  Han,  ch.  xxiv 


GOVERNMENT  CONTROL  OF  GRAIN 


571 


2.  Statement  of  Mencius 

In  the  writings  of  Mencius  we  find  also  the  same  prin- 
ciple of  adjusting  the  supply  and  demand  of  grain.  Men- 
cius said  to  King  Hui  of  Laing: 

When  the  grain  is  so  abundant  that  the  dogs  and  swine  eat  the 
food  of  man,  you  do  not  make  any  collection  for  storage. 
When  there  are  people  dying  from  famine  on  the  roads,  you 
do  not  issue  the  stores  of  your  granaries  for  them.  When 
people  thus  die,  and  you  say,  "  It  is  not  owing  to  me ;  it  is 
owing  to  the  year,"  in  what  does  this  differ  from  stabbing  a 
man  and  killing  him.  and  then  saying,  '*  It  was  not  I ;  it  was 
the  weapon  ?  "  ' 

3.  System  of  the  Constantly  Normal  Granary 
The  principle  of  equalizing  the  price  of  grain  advocated 
by  Li  K*o  and  Mencius  was  adopted  into  the  system  of 
''  constantly  normal  granary."  During  the  reign  of  Han 
Hsiian  Ti,  when  there  were  good  crops  for  many  years,  the 
price  of  one  bushel  of  grain  was  as  low  as  five  pennies. 
Then  the  farmers  suffered  greatly.  In  498  (54  B.  C. ) , 
Keng  Shou-ch'ang  proposed  that  the  government  should 
buy  grain  from  places  near  the  capital  instead  of  trans- 
porting it  from  the  eastern  provinces.  According  to 
the  old  custom  of  the  Han  dynasty,  the  government  trans- 
ported annually  from  the  eastern  provinces  four  million 
bushels  of  grain  to  supply  the  capital,  which  was  in  the  prov- 
ince of  Shensi,  in  northwestern  China.  As  this  transporta- 
tion was  by  means  of  the  waterway,  the  number  of  laborers 
amounted  to  sixty  thousand.  By  the  plan  of  Keng  Shou- 
ch'ang,  which  was  approved  and  carried  out  by  the  em- 
peror, the  government  saved  more  than  half  the  expense  of 
transportation,   and    the   farmers   got   more  profit.      Then 

*  Classics,  vol.  ii,  p.  132. 


572 


THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 


Keng  Shou-ch'ang  proposed  that  all  the  provinces  along  the 
boundary  of  the  empire  should  establish  granaries.  When 
the  price  of  grain  was  low,  they  should  buy  it  at  the  nor- 
mal price,  higher  than  the  market  price,  in  order  to  profit 
the  farmers.  When  the  price  was  high,  they  should  sell  it 
at  the  normal  price,  lower  than  the  market  price,  in  order 
to  profit  the  consumers.  Such  a  granary  was  called  '^  con- 
stantly normal  granary."  As  the  result  was  good  for  the 
people,  the  emperor  gave  Keng  Shou-ch^ang  the  title  of 
marquis.^  This  system  has  continued  from  the  time  the 
constantly  normal  granary  was  established,  in  498,  to  the 
present  day.  Although  it  was  sometimes  in  practice,  and 
sometimes  out  of  practice,  according  to  the  political  condi- 
tions of  different  ages,  its  name  has  nominally  existed  in 
nearly  all  ages.  Despite  the  modifications  of  this  system  in 
later  times,  the  fundamental  law  of  Keng  Shou-ch^ang  re- 
mains the  same.  Therefore,  we  shall  not  mention  the  dif- 
ferent laws  of  different  dynasties.^ 

^  History  of  Han,  ch.  xxiv. 

2  Through  all  ages,  the  amounts  of  addition  to  and  of  deduction 
from  the  market  prices  of  grain  under  the  system  of  "  constantly- 
normal  granary"  varied.  During  the  reign  of  Tang  Hsiian  Tsung, 
about  1293- 1305  (742-754  A.  D.),  for  the  purchase  of  grain,  three 
pennies  were  added  to  the  market  price  of  each  peck.  In  1363  (812 
A.  D.),  Tang  Hsien  Tsung  ordered  that  ten  pennies  per  peck  be  added. 
During  the  reign  of  Sung  Chen  Tsung  (i557,  or  1006  A.  D.),  these 
rates  were  fixed :  in  purchasing,  three  or  five  pennies  were  added  to 
the  market  price;  and  in  selling,  three  or  five  pennies  were  deducted 
from  the  market  price;  the  deduction  was  not  below  the  original  price 
at  which  the  grain  was  bought.  About  1712-1740  (1161-1189  A.  D.), 
the  law  of  the  Kin  dynasty  stated  that  the  purchase-price  was  to  be 
two-tenths  higher  than  the  market  price,  and  that  the  selling-price  was 
to  be  one-tenth  lower  than  the  market  price.  In  1741.  the  selling-price 
was  reduced  to  one-third  of  the  market  price.  In  2308  (i757  A.  D.), 
Kao  Tsung  of  the  present  dynasty  ordered  that  the  selling-price  of  one 
bushel  of  grain  should  be  three  maces  of  silver  lower  than  the  market 
price.  From  the  facts  mentioned  above,  we  can  get  some  idea  of  the 
range  of  prices. 


GOVERNMENT  CONTROL  OF  GRAIN 


573 


4.   Criticism 

(a)   Its  Strength 

The  equalization  of  the  price  of  grain  is  a  very  beneficial 
and  practical  scheme.  It  benefits  the  people  without  cost  to 
the  state.  When  the  price  is  too  low,  though  the  govern- 
ment buys  the  grain  at  a  price  higher  than  the  market  rate, 
this  does  not  mean  a  waste  to  the  government.  When  the 
price  is  too  high,  though  the  government  sells  the  grain  at 
a  price  lower  than  the  market  rate,  it  does  not  mean  a  loss 
to  the  government.  Even  if  it  should  be  an  expense  to  the 
government,  the  social  benefit  is  much  greater  than  the  pub- 
lic expense.  On  the  contrary,  as  a  matter  of  fact,  the  gov- 
ernment can  make  profit  out  of  this  system.  In  ancient 
times,  Kuan  Tzu  used  a  similar  scheme  to  enrich  the  state 
of  Ch'i.  During  the  Tang  dynasty,  this  scheme  made 
money  to  meet  the  need  of  public  finances.  During  the 
Sung  dynasty,  it  became  of  great  importance  for  the  food 
supply  of  the  standing  army  along  the  boundary.  W'e 
do  not  touch  here  the  side  of  public  finance,  however, 
but  the  side  of  the  people  only,  which  was  the  original  con- 
sideration of  this  system. 

According  to  the  laissez-faire  doctrine,  this  system  seems 
unnatural,  and  will  do  more  harm  than  good,  but  this  is 
not  true  at  all.  In  the  first  place,  the  farmers  are  short- 
sighted and  cannot  look  out  for  their  own  interests.  As 
Ch'iu  Chiin  (1971-2046,  or  14201495  A.  D.)  said,  the 
fanners  have  no  farther  thought ;  when  the  crop  is  good, 
they  exchange  the  grain  for  money,  and  exchange  the  money 
for  consumption  goods.  In  a  little  while  the  whole  crop 
is  gone.     When  a  bad  year  comes,  they  fail  to  make  a  living. 

In  the  second  place,  the  farmers  are  helpless  to  protect 
their   own    interests,    even    if   they    are   not    short-sighted 


--7,        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

From  the  statements  of  Li  K'o  and  Chao  Tsao/  everyone 
can  see  that  in  ancient  times  the  condition  of  the  farmers 
was  very  bad.  But  conditions  are  about  the  same  in  mod- 
ern times.  Because  the  condition  of  the  farmers  is  very 
bad,  they  are  bound  to  sell  their  crops  at  any  price.  When 
the  harvest  is  finished,  every  farmer  is  obliged  to  sell  grain 
at  the  same  time.  As  there  is  a  great  supply  of  grain,  its 
price  must  naturally  be  lower  than  usual.  When  the  arti- 
ficial suppression  of  the  merchants  is  added,  the  farmers 
have  no  way  to  escape  suffering.  Moreover,  as  the  farmers 
almost  always  borrow  money  from  the  merchants  at  a  high 
rate  of  interest,  their  crop  is  practically  sold  before  the  har- 
vest. In  a  word,  the  life  of  the  farmers  is  controlled  by  the 
merchants. 

In  the  third  place,  as  grain  is  necessary  to  human  life,  its 
price  has  the  greatest  influence  upon  society  at  large.  If 
the  merchants  controlled  its  price  by  keeping  it  in  stor- 
age and  limiting  its  supply  in  the  market,  the  consumers 
would  suffer  severely.  From  a  study  of  Chinese  history  in 
famine  times,  it  appears  that  the  high  prices  of  grain  usually 
disturbed  national  peace,  at  least  locally,  and  sometimes  even 
produced  great  revolutions.  Even  at  the  present  day,  the 
people  are  alarmed  at  a  high  price.  Therefore,  besides  the 
system  of  constantly  normal  granary,  the  Chinese  have  now 
numerous  laws  to  forbid  exports  of  grain  to  foreign  coun- 
tries, local  prohibitions  of  exportation,  the  special  storage 
of  the  merchants,  etc.  In  fact,  the  price  of  grain  serves  as 
a  barometer  of  Chinese  economic  conditions. 

In  the  fourth  place,  last  and  most  important,  as  agricul- 
ture is  subject  to  nature,  the  crop  does  not  follow  the  law 
of  demand  and  supply.  A  bad  year  may  come  simultan- 
eously with  a  great  demand,  and  several  good  crops  may 

1  See  supra,  pp.  268,  395-7. 


GOVERNMENT  CONTROL  OF  GRAIN 


575 


come  successively.  If  we  adopt  a  laissez-faire  policy,  in  the 
former  case  the  people  would  die  of  hunger,  and  in  the 
latter  case  the  farmers  would  get  nothing  but  grain,  because 
the  lowest  price  would  not  be  sufficient  to  exchange  for 
other  commodities.  If  they  sold  their  crops  at  the  lowest 
price,  the  merchants  would  profit  at  the  expense  of  the 
farmers.  If  the  consumers  bought  grain  at  the  highest 
price,  the  merchants  would  profit  at  the  expense  of  the 
whole  society.  Such  a  condition  is  especially  true  in  China 
where  there  is  a  great  population  and  the  people  use  rice  as 
the  principal  food.  Before  the  Opium  War,  China  had 
little  foreign  trade,  and  did  not  get  much  food  through  im- 
portation. Even  at  present,  foreign  trade  does  not  help 
China  in  this  respect,  because  the  western  nations  do  not 
supply  her  with  rice.^  As  the  people  cannot  depend  upon 
nature,  they  must  necessarily  adjust  artificially  the  price  of 
grain. 

Because  of  these  four  considerations,  the  system  of  equal- 
ization of  the  price  of  grain  has  done  immeasurable  good  to 
China.  Owing  to  the  difficulty  of  transportation  and  the 
absence  of  importation,  this  system  was  more  important  in 
old  times  than  it  is  at  present,  but  it  is  still  very  important. 
Take  the  province  of  Kuangtung,  for  example,  where  trans- 
portation by  water  is  very  convenient,  and  where  the  impor- 
tation of  rice  from  Annam  and  Siam  and  from  the  neigh- 
boring provinces  of  China  is  very  large.  When  the  crop  is 
bad,  it  is  a  policy  of  the  government  to  give  a  fund  together 
with  the  subscription  of  the  people,  to  buy  rice  everywhere 
and  sell  it  at  a  low  price,  in  order  to  compete  with  the  rice- 
merchants  and  make  the  price  low.  Artificial  limitation  of 
supply  by  the  merchants  and  unreasonable  raising  of  price 
are  not  allowed.      The  chief  reason  is  because  the  people 

'  The  only  importation  of  rice  is  from  Annam  and  Siam. 


3^6       1"'^^^  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

depend  so  much  on  rice,  and  demand  it  in  large  amount.  It 
seems  that  a  change  of  taste  or  habit,  and  a  resulting  smaller 
consumption  of  rice,  would  be  desirable. 

(b)  Its  Weakness 

Although  the  system  of  constantly  normal  granary  is 
good,  it  still  has  weaknesses.  The  first  one  to  object  to  this 
system  was  Liu  Pan  (570-629,  or  19-78  A.  D.).  When 
Han  Ming  Ti  wished  to  establish  it,  Liu  Pan  said  that  it 
had  the  name  of  benefiting  people,  but  that  it  did  not  do  so 
in  fact,  because  the  rich  took  advantage  of  the  system,  and 
the  people  failed  to  get  the  benefit. 

In  1637  (1086  A.  D.),  Ssu-ma  Kuang  (i  570-1637,  or 
1019-1086  A.  D. )  describes  very  clearly  the  weakness  of 
this  system  in  his  day.  Some  of  the  magistrates  have  no 
public  fund  to  buy  grain,  and  some  do  not  want  to  buy  it 
because  they  like  to  save  themselves  trouble.  In  some  cases, 
the  officials  do  not  know  the  real  price,  and  let  the  employees, 
together  with  the  merchants,  defraud  them.  When  the 
farmers  hurry  to  sell  their  grain,  the  employees  purposely 
give  a  lower  price,  in  order  to  make  the  farmers  sell  it  not 
to  the  government  but  to  the  merchants.  After  the  mer- 
chants buy  enough  of  it,  they  begin  to  raise  the  price. 
Therefore,  the  farmers  get  only  a  low  price,  and  the  govern- 
ment pays  always  a  high  price;  the  profits  go  only  to  the 
merchants.  In  some  other  cases,  even  if  the  officials  want 
to  buy  it  at  proper  times,  they  are  obliged  to  send  word 
from  the  district  to  the  prefecture,  from  the  prefecture  to 
the  superior  of  the  province,  and  from  the  province  to  the 
imperial  capital.  When  the  answer  comes  back,  months  have 
passed,  and  the  price  is  doubled.  Therefore,  a  few  years 
later,  the  original  price  of  the  purchase  of  the  government  is 
still  higher  than  the  market  price.  Such  grain  cannot  be 
sold,  and  becomes  a  waste.     But  he  said  that  these  defects 


GOVERNMENT  CONTROL  OF  GRAIN 


S77 


come  from  the  administration  of  man,  not  from  the  law 
itself,  which  is  true.' 

As  the  criticism  of  Ssu-ma  Knang  refers  to  the  purchase 
only,  we  shall  give  a  criticism  referring  to  the  sale.  Chu 
Hsi  says  that  as  the  constantly  normal  granary  is  estab- 
lished only  in  cities,  it  benefits  only  the  lazy  suburbans.  As 
for  the  good  farmers  in  the  mountain  districts,  even  if  they 
are  dying  of  hunger,  the  grain  cannot  reach  them.  More- 
over, the  law  is  too  complicated ;  its  result  is  that  even  when 
the  officials  see  victims  of  famine,  they  do  not  dare  to  issue 
the  grain.  Usually  they  lock  the  granary  up  and  hand  it 
down  to  their  successors  without  its  being  touched  for  sev- 
eral decades.  During  an  emergency  when  the  grain  is 
necessarily  issued,  it  has  become  dust  and  dirt  which  cannot 
be  eaten.  ^  But  all  these  weaknesses  are  the  results  not  of 
the  original  law  itself,  but  of  the  administration  of  man. 

To-day,  although  the  constantly  normal  granary  exists 
not  only  in  name,  but  in  fact,  it  is  not  of  great  importance. 
Usually,  keeping  the  old  grain  in  the  granary,  the  officials 
neither  buy  new  grain  nor  sell  old.  Therefore,  the  fun- 
damental principle  of  this  law  has  lapsed,  and  the  granary 
has  nothing  to  do  with  the  market  price.  The  chief  reason 
for  this  is  that  it  is  difficult  for  officials  to  undertake  com- 
mercial functions  along  with  political  duties. 

II.    DISTRIBUTION    OF    GR.MN^ 

I.  System  of  the  Free  Granary 

From  the  system  of  constantly  normal  granary,  the  sys- 
tem of  "  free  granary  "  was  introduced  by  the  Sui  dynasty. 
There  are  these  differences  between  the  two  systems:  the 

'  General  Research,  ch.  xxi.  '  Ibid. 

'  All  occasional  distributions  of  grain,  during  any  calamity,  arc  en- 
tirely left  out. 


5^8        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

constantly  normal  granary  belongs  to  the  government,  and 
the  grain  is  bought  and  sold  by  means  of  payment ;  while  the 
free  granary  belongs  to  the  people,  and  the  grain  is  col- 
lected as  an  addition  to  taxation,  and  is  distributed  freely. 
In  1 136  (585  A.  D.),  Ch'ang-sun  P'ing,  a  high  official, 
basing  his  plan  on  the  Confucian  doctrine  of  storing  grain, ^ 
proposed  that  each  village  should  establish  the  free  granary. 
During  harvest,  each  farmer  should  be  advised  and  encour- 
aged to  contribute  voluntarily  rice  and  wheat,  propor- 
tionately to  his  crop.  This  should  be  stored  up  in  the  gran- 
ary, and  the  committee  of  that  village  should  be  in  charge 
of  the  annual  collection,  the  care  of  storage  and  the  account. 
During  a  bad  year,  if  the  inhabitants  of  that  village  should 
be  in  want  of  food,  the  grain  of  the  granary  should  be  given 
to  them.  This  proposal  was  carried  out  by  Sui  Wen  Ti, 
and  this  system  prevailed  over  many  provinces. 

In  1 147  (596  A.  D.),  Wen  Ti  decreed  that  the  free 
granary  should  also  be  established  in  the  city  of  each  dis- 
trict. In  the  same  year,  he  changed  the  voluntary  contribu- 
tion into  a  tax,  and  regulated  it  in  three  grades :  the  well- 
to-do  family  should  be  taxed  not  more  than  one  bushel  of 
grain ;  the  ordinary  family,  not  more  than  seven  pecks ;  and 
the  poor  family,  not  more  than  four  pecks. ^ 

The  free  granary  was  also  called  "  village  granary." 
This  system  was  highly  esteemed  by  Hu  Yin,  who  said  that, 
for  the  relief  of  famine,  nothing  is  more  important  than  that 
the  granary  should  be  near  to  the  people.  Therefore,  the 
system  of  free  granary  of  the  Sui  dynasty  was  much  better 
than  that  of  modern  times,  when  the  granary  was  located 
in  the  cities  only.^ 

^  See  supra,  p.  358. 

2  History  of  Sui,  ch.  xxiv. 

'  General  Research,  ch.  xxi. 


GOVERNMEST  CONTROL  OF  GRAIN 


579 


During  the  Tang  dynasty,  in  1179  (628  A.  D. ),  Tai 
Chou,  a  high  official,  also  making  use  of  the  Confucian  doc- 
trine of  storing  grain,  proposed  to  reestablish  the  system  of 
free  granary.  Then  Tang  T'ai  Tsung  carried  his  proposal 
into  law.  According  to  the  products  of  different  soils,  each 
acre  was  taxed  two  pints  of  grain.  During  a  bad  year,  if 
the  crop  lost  four-tenths,  half  of  the  tax  was  remitted ;  if  it 
lost  seven-tenths,  the  tax  was  remitted  entirely.  As  the 
merchants  had  no  land,  their  families  were  classified  into 
nine  grades,  and  the  variation  of  their  offering  of  rice  was 
from  five  bushels  down  to  five  pecks.  The  poorest  families 
and  the  barbarian  tribes  were  exempted.  When  the  crop 
was  bad,  grain  was  distributed  to  the  people,  or  in  the 
spring  it  was  loaned  for  seed,  and  in  the  autumn  it  was 
returned.^ 

Under  the  Sung  dynasty,  the  system  of  free  granary  prac- 
tically died  out.  But  there  was  a  proposal  which  should  be 
mentioned.  About  1 585-1 588  (1034-1037  A.  D.),  Wang 
Ch'i  proposed  that  this  system  should  be  reestablished.  The 
tax  should  begin  from  the  fifth  grade  of  family  up ;  and  its 
rate  should  be  one-twentieth  of  the  regular  tax.  It  should 
be  collected  together  with  the  regular  tax,  and  remitted  in 
bad  years.  Since  the  average  amount  of  the  regular  tax  in 
the  ordinary  prefecture  was  one  hundred  thousand  bushels, 
the  free  granary  would  get  an  addition  of  five  thousand 
bushels.  The  rich  families,  owning  more  land,  would  pay 
more  taxes  to  the  free  granary;  while  the  ordinary  and 
poor  families,  owning  less  land,  would  pay  only  a  small  tax. 
But,  during  bad  years,  while  the  rich  families  might  not 
need  the  distribution  of  grain,  the  ordinary  and  poor  fami- 
lies might  really  receive  the  benefit.  This  would  follow  the 
principle  of  "  taking  away   the  surplus  to  fill   the  insuffi- 

^New  History  of  Tang,  ch.  li. 


^So       THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

ciency,"  and  it  would  be  a  benefit  to  the  whole  empire/ 
Although  his  proposal  was  not  enacted  into  law,  his  state- 
ment points  out  clearly  the  principle  of  the  system  of  free 
granary. 

This  system  was  a  socialistic  measure:  it  got  more  taxes 
from  the  rich  and  gave  more  benefit  to  the  poor.  But  no 
one  has  thought  that  this  system  is  not  welcomed  by  the 
rich.  First,  the  tax  was  very  small,  and  it  was  in  accord- 
ance with  ability,  so  it  was  easy  for  the  people  to  pay  it. 
Second,  the  rich  could  participate  in  the  social  benefit  just 
as  much  as  the  poor,  otherwise  they  would  lose  more  than 
the  poor  by  the  disturbance  of  peace.  Third,  as  they  lived 
together  in  a  small  community,  the  rich  for  ethical  reasons 
were  willing  to  help  the  poor.  Fourth,  as  the  account  was 
in  the  hands  of  the  rich,  they  knew  perfectly  its  financial 
condition,  and  had  no  fear  of  the  corruption  of  the  ofiicials. 
The  first  cause  made  them  able  to  pay  the  tax,  and  the  last 
three  causes  made  them  willing  to  pay  it.  These  points  are 
the  strength  of  this  system. 

III.    GOVERNMENT    LOANS    OF    GRAIN 

I.  Classical  Theories 

In  ancient  China  the  whole  empire  was  an  agricultural 
community,  so  that  the  grain  was  not  only  the  subject  of 
production  and  consumption,  but  also  the  means  of  exchange 
and  distribution.  In  fact,  in  modern  times  money  is  a  most 
important  factor  of  industrial  capital,  but  in  ancient  times 
grain  was  the  most  important.  As  the  agricultural  class 
formed  the  majority  of  people,  if  they  were  suffering 
the  whole  empire  would  be  in  distress.  In  that  agricul- 
tural stage,  there  was  nothing  worse  than  usury  for  the  hurt 

*  General  Research,  ch.  xxi.    His  theory  is  the  faculty  theory  of  tax- 
ation, as  against  the  benefit  theory. 


OOrERXMEXT  COXTROL  OF  GRAL\  581 

of  the  farmers.  But  fortunately,  the  ancient  Chinese  did 
not  enact  any  law  to  forbid  usury,  because  they  knew  that 
it  could  not  be  done  away  with  by  law.'  The  only  protec- 
tion given  by  the  government  to  the  farmers  against  usury 
was  the  lending  of  capital,  grain,  to  them  at  the  lowest 
rate  of  interest,  or  no  interest  at  all.  Although  the  loan 
was  in  the  form  of  grain,  since  the  country  was  in  the  agri- 
cultural stage,  the  same  principle  would  apply  even  in  the 
industrial  stage.  This  is  the  socialistic  theory  of  Confu- 
cianism. 

The  Canon  of  Poetry  says:  **  Bright  are  those  extensive 
fields,  a  tenth  of  whose  produce  is  annually  levied.  I "  take 
the  old  stores  and  with  them  feed  our  farmers."  ^  Cheng 
Hsiian  comments : 

When  the  granaries  were  more  than  sufficient,  the  people  were 
allowed  to  borrow  grain  on  credit  or  on  payment  of  interest. 
Taking  the  old  stores  to  feed  the  farmers,  on  the  one  hand, 
was  to  change  the  old  grain  of  the  government ;  and  on  the 
other  hand,  it  encouraged  the  people  to  keep  their  new  grain. 
This  was  the  law  of  ancient  times  practised  in  good  years. 

Even  in  good  years  there  might  be  poor  people  in  want  of 
food;  hence  the  government  helped  them  out  by  lending 
them  the  old  grain,  while  it  kept  the  new  grain  in  its 
granary. 

According  to  the  Official  System  of  Cliou,  there  is  a  col- 
lector of  the  taxes  of  the  country    (Hi  shili),  who  takes 

'  Historically,  the  usury  law  first  appeared  in  the  Han  dynasty;  in 
436  A.  K.  (116  B.  0,  Marquis  P'anp-kuang  was  deprived  of  his  feudal 
estate  partly  because  he  made  interest  beyond  the  legal  rate  OUstory 
of  Han,  ch.  xv).  There  is  a  usury  law  in  the  Law  Code  of  the  Ts'ing 
Dynasty  (ch.  xiv)  ;  but  it  is  not  enforced. 

'  The  prince. 

•  Classics,  vol.  iv,  j)t.  ii.  p.  37C. 


582        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

charge  of  the  three  kinds  of  grain  which  come  from  the 
three  kinds  of  taxation.  First,  when  the  grain  is  distributed 
to  the  people,  he  calls  them  up  by  the  names  of  the  tax  roll, 
and  distributes  proportionately  the  stores.  Some  are  for 
the  maintenance  of  life  or  consumption,  and  some  are  for 
use  in  business  or  production;  for  both  purposes  the  people 
are  required  to  pay  the  same  rate  of  interest.  Second,  there 
is  also  another  law  for  the  lending  of  grain  without  interest. 
In  spring,  when  the  people  are  in  want  of  grain,  he  gives  it 
to  them.  In  autumn,  when  the  people  have  plenty  of  it, 
they  return  it  to  him.  In  this  way  the  government  ex- 
changes the  old  grain  for  the  new,  and  the  people  are  en- 
abled to  meet  their  needs.  It  benefits  the  people,  but  costs 
the  government  nothing.^ 

During  the  Chou  dynasty,  the  lending  of  grain  to  the 
people  was  a  policy  for  winning  their  hearts.  Therefore  it 
was  practised  by  many  noble  families — such  as  the  Han  of 
Cheng,  the  Yo  of  Sung,  and  the  Chen  of  Ch'i.^  The  result 
was  that  they  all  became  controllers  of  their  states.  These 
facts  are  sufficient  to  show  the  importance  of  lending  grain 
by  the  government.  First,  it  relieved  the  people;  and  sec- 
ond, it  strengthened  the  power  of  the  ruling  house. 

2.  System  of  the  Village  Granary 
From  the  system  of  free  granary,  a  system  of  "  village 
granary  "  was  developed.  The  difference  between  these  two 
systems  was  that  the  former  distributed  grain  freely,  while 
the  latter  loaned  it.  But,  since  the  free  granary  was  also 
called  village  granary,  and  since  the  grain  of  the  free  gran- 
ary in  the  Tang  dynasty  was  also  allowed  to  be  loaned,  the 
system  of  village  granary  was  practically  the  same  as  that 

^  Ch.  xvi.    The  second  rule  was  adopted  by  Wen  Ti  of  the  Northern 
Chou  dynasty. 

'  Classics,  vol.  v,  pt.  ii,  pp.  548,  589. 


GOVERNMENT  CONTROL  OF  GRAIN  583 

of  free  granary.  However,  the  main  purpose  of  the  free 
granary  was  distribution,  and  that  of  the  village  granar\^ 
was  loan,  so  it  is  best  to  make  a  distinction  between  them. 
Moreover,  the  sources  of  the  free  granary  came  from  an 
addition  to  the  taxes,  and  the  granary  was  interfered  with 
by  the  government;  but  those  of  the  village  granary  came 
entirely  from  voluntary  contributions,  and  the  granary  was 
controlled  solely  by  the  people.  Therefore,  the  system  of 
village  granary  was  an  independent  institution,  an  out- 
growth from  the  free  granary. 

The  system  of  village  granary  was  established  by  Chu 
Hsi.  In  1 7 19  (1168  A.  D.),  when  the  people  of  his  dis- 
trict (Fuhkien  province)  were  hard  pressed  for  food,  he 
asked  the  prefect  to  give  him  six  hundred  bushels  of  rice 
from  the  constantly  normal  granary  for  the  purpose  of  re- 
lief. In  the  summer  the  people  received  the  rice,  and  in  the 
winter  they  returned  it,  together  with  20  per  cent  interest. 
After  that  year,  this  was  repeated  every  year.  When  the 
crop  was  not  good,  one-half  interest  was  remitted,  and  when 
it  was  very  bad,  the  total  interest  was  remitted.  Through- 
out fourteen  years,  three  granaries  were  establisherl  for  the 
storing  of  the  rice  which  came  as  interest,  .\fter  he  re- 
turned the  original  amount  of  rice  to  the  prefect,  the  exist- 
ing amount  in  the  granaries  was  three  thousand  one  hun- 
dred bushels.  Then  no  interest  was  required ;  but  when  the 
people  returned  their  loan,  for  each  bushel  three  pecks  of 
rice  were  added  to  the  principal  in  order  to  save  waste. 
Hence,  around  his  village,  even  when  bad  years  occurred, 
there  was  no  want  of  food.  This  system  was  called  village 
granary.  In  1732  (1181  A.  D.),  when  he  suggested  this 
system  to  the  government,  it  was  given  by  the  government 
to  all  districts  as  a  model. 

The  details  of  this  system  were  that  among  all  borrowers 
ten  families  formed  a  chin.     In  each  chia,  a  head  man  was 


^84        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

elected.  Among  fifty  chia,  a  village  elder  was  chosen 
by  the  committee  of  the  granary.  In  the  first  month, 
the  village  elder  began  to  form  the  chia.  Those  people  who 
kept  deserted  soldiers,  who  did  not  behave  themselves,  and 
who  were  well-to-do,  were  excluded;  but  none  was  com- 
pelled to  come  in.  When  they  wanted  to  come  in,  they 
gave  the  number  of  the  adults  and  children  of  their  families. 
For  an  adult,  one  bushel  of  grain  was  loaned,  and  for  a 
child,  half  that  amount.  Below  five  years,  no  child  could 
apply  for  a  loan.  The  head  man  of  the  chia  could  apply 
for  a  double  amount.  The  village  elder,  after  his  exam- 
ination, took  signatures  of  all  the  members  to  the  granary, 
and  they  were  examined  again.  Their  names  were  regis- 
tered according  to  the  arrangement  of  the  chia,  and  the 
amount  of  loan  for  each  family  was  written  down.  For 
the  total  amount  of  the  loan  of  each  chia,  a  certificate  was 
given  to  the  head  man  for  his  withdrawing  of  grain.  Yet 
the  issue  of  the  loan  was  divided  in  two — one  part  for  the 
seeding  and  the  other  for  the  weeding.  After  harvest,  the 
loan  should  be  entirely  paid  back  not  later  than  the  last  day 
of  the  eighth  month.  If  the  returned  grain  was  not  good, 
the  returner  was  liable  to  a  fine.  These  details  were  the 
general  rules  of  the  system  of  village  granary. 

The  system  of  village  granary  was  similar  to  that  of 
''  green-  sprout  money,"  ^  but  the  former  was  much  more 
successful  than  the  latter.  The  reasons  for  this  have  been 
pointed  out  by  Chu  Hsi  himself.  He  said  that  the  idea  of 
the  law  of  "  green  sprout  "  was  not  bad ;  but  its  issue  was 
not  of  grain,  but  of  money ;  its  location  was  not  in  villages, 
but  in  cities;  its  control  was  not  by  the  people,  but  by  the 
officials ;  and  its  practice  was  not  with  the  motive  of  charity, 
but  with  the  aim  of  revenue.     Therefore,  this  law  was  suc- 

1  See  infra,  pp.  589-592. 


GOVERNMENT  CONTROL  OF  GRAIN  585 

cessful  when  Wang  An-shih  applied  it  to  a  district,  but  it 
was  unsuccessful  when  he  applied  it  to  the  whole  empire. 
Now,  this  system  of  Chu  Hsi  was  of  the  same  principle  as 
that  of  Wang  An-shih,  but  his  application  was  different. 
Its  issue  was  of  grain ;  its  location  was  in  villages ;  its  con- 
trol was  by  the  people;  and  its  practice  was  with  the  motive 
of  charity.  These  were  the  reasons  of  the  success  of  the 
village  granary  system.' 

Since  the  system  of  village  granar}'  was  established  by 
Chu  Hsi,  it  has  been  practised  by  many  followers.  Under 
the  Sung  dynasty  there  were  some  modifications — the  grain 
was  also  loaned  to  farmers  who  owned  no  land,  while 
originally  it  was  loaned  to  land-owning  farmers  only,  and 
no  interest  was  required.^  In  the  present  dynasty  this 
system  still  exists.  In  2275  (1724  A.  D.),  the  following 
was  the  rate  of  interest:  for  one  bushel  of  grain  loaned  in 
summer,  two  pecks  should  be  paid  in  winter  as  interest, 
that  is,  a  semi-annual  interest  at  the  rate  of  20  per  cent. 
According  to  the  situation  of  bad  crops,  a  remission  of 
either  a  half  or  the  whole  of  the  interest  was  made.  After 
ten  years,  when  the  interest  would  be  more  than  double  the 
amount  of  the  original  grain,  the  rate  of  semi-annual  in- 
terest should  be  reduced  to  10  per  cent."''  Although  there 
were  small  morlifications  in  later  times,  its  essentials  remain 
the  same. 

*  General  Research,  ch.  xxi. 

'  Continuation  of  the  General  Research,  ch.  xxvii. 

'  General  Research  of  the  Present  Dynasty,  ch    vi. 


CHAPTER  XXXI 

Government  loans  and  public  relief 

II.  government  loans 

I.  Classical  Theories^ 

The  principle  of  government  aid  for  the  farmer  was 
noted  by  Mencius.     He  says : 

When  the  emperor  visited  the  princes,  it  was  called  a  tour  of 
inspection.  When  the  princes  attended  the  court  of  the  em- 
peror, it  was  called  a  report  of  office.  It  was  a  custom  in  the 
spring  to  examine  the  ploughing,  and  supply  any  deficiency 
[which  might  be  either  of  seed,  or  of  instruments,  or  of 
money]  ;  and  in  autumn  to  examine  the  reaping,  and  assist 
where  there  was  a  deficiency  of  the  crop.^ 

In  fact,  whenever  the  emperor  and  the  princes  went  out,  it 
was  necessary  for  them  to  help  the  farmers  in  any  way. 
Before  the  seeding,  and  after  the  harvest,  any  deficiency 
was  filled  by  the  aid  of  government, — that  means  the  gov- 
ernment should  aid  the  farmers  at  all  times  when  they 
need  it.  But,  as  Mencius  does  not  tell  whether  the  farmers 
should  return  what  they  had  received  to  the  government  or 
not,  we  cannot  decide  that  with  certainty.  It  would  seem, 
however,  that  the  farmers  must  have  returned  it,  otherwise 
the  government  could  not  have  given  aid  as  often  as  Men- 
cius says.     But  there  would  be  no  interest. 

^  See  also  the  classical  theories  about  the  government  loan  of  grain, 
supra,  pp.  580-2. 

'  Classics,  vol.  ii,  pp.  159,  436. 
586 


GOVERNMENT  LOANS  AND  PUBLIC  RELIEF         587 

Among  all  the  Confucian  texts,  there  is  no  theory  of  lend- 
ing money  at  interest  by  the  government.  Such  theory  is 
given  only  in  the  Official  System  of  Chou.  Unfortunately, 
Wang  Mang  and  Wang  An-shih  were  the  only  two  who 
applied  this  law  of  the  Official  System  of  Chou,  and  both 
failed.  Therefore,  the  question  was  raised  as  to  whether 
this  law  was  originated  by  the  Duke  of  Chou  or  not.  Many 
Confucians  denied  it,  and  thought  that  this  law  was  put  into 
the  Official  System  of  Chou  by  Liu  Hsin,  in  order  to  sup- 
port Wang  Mang's  law.  But  the  affirmative  side  is  very 
strong.  Although  Liu  Hsin  did  put  his  own  words  into  the 
Official  System  of  Chou  in  many  other  places,  it  seems  sure 
that  this  law  was  originated  by  the  Duke  of  Chou.  During 
the  beginning  of  the  Chou  dynasty,  the  government  com- 
pletely controlled  the  economic  life  of  the  people,  and  there 
was  no  capitalistic  class.  If  the  government  would  not 
lend  money  to  them  in  time  of  need,  how  could  the  people 
get  money  to  meet  their  expenses?  And  how  could  the 
productive  forces  be  sufficient?  As  the  government  was 
paternal  in  form,  and  the  Duke  of  Chou  was  a  great  sage, 
there  is  no  doubt  that  he  did  establish  a  government  bank 
for  the  benefit  of  the  people.^ 

According  to  the  Official  System  of  Chou,  the  govern- 
ment bank  is  called  ch'iian  fu — ch'iian  means  money,  and  fu 
means  treasury.  It  gives  credit  and  loans  to  the  people. 
Since  this  bank  has  commodities  for  sale,  the  people  are 
allowed  to  buy  them  on  credit  without  paying  interest.  But 
such  credit  is  given  on  only  two  occasions — sacrifice  and 
funeral.  As  these  two  things  are  religious  matters  and  are 
necessary  to  the  people,  the  government  gives  them  credit 
in  order  to  satisfy  their  needs  in  emergencies.  The  limit  of 
time  is  fixed  thus :  for  sacrifice,  payment  shall  be  made  in 

'  ucneral  Research,  chs.  viii.  xx. 


^88        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

not  over  ten  days ;  and  for  funeral,  in  not  over  three  months. 
Whenever  the  people  want  to  borrow  money  or  commodi- 
ties from  the  bank,  it  first  investigates  their  cases  with  the 
aid  of  their  magistrate,  and  then  grants  them  the  loan.  In 
this  way  it  makes  sure  that  they  use  the  loan  for  production 
and  not  for  consumption,  so  that  there  is  no  danger  to  cred- 
itor or  borrower.  For  necessary  consumption,  as  sacrifice 
and  funeral,  the  government  does  not  require  interest;  but 
for  productive  capital,  it  requires  interest.  On  the  one 
hand,  this  prevents  the  people  from  making  private  profit 
at  public  expense;  and  on  the  other  hand,  it  benefits  them 
without  loss  to  the  government,  because  the  total  interest 
would  be  sufficient  against  the  risk.  There  is  a  rule  that 
the  interest  is  paid  according  to  the  business  of  the  locality. 
For  example,  if  the  principal  business  of  the  locality  of  the 
borrower  A  is  agriculture,  the  interest  is  paid  in  agricul- 
tural products,  and  if  that  of  the  borrower  B  is  manufac- 
ture, it  is  paid  in  manufactured  goods.  This  is  for  the  con- 
venience of  the  borrower,  so  that  he  can  easily  pay  off  his 
debt.  Since  the  rate  of  interest  is  not  given  by  the  text,  it 
is  unknown ;  but  it  must  be  very  low,  because  its  purpose  is 
not  for  revenue,  but  for  the  benefit  of  the  people.^ 

During  the  Chou  dynasty,  the  government  loan  was  part 
of  a  policy  of  developing  the  economic  interest  of  the  people. 
For  example,  when  Marquis  Tao  of  Tsin  wanted  to  give  his 
people  rest  and  prosperity  (13  B.  K.  or  564  B.  C),  all  the 
accumulated  stores  of  the  state  were  given  out  for  the  bor- 
rowing of  the  people.  From  the  marquis  downwards,  all 
who  had  such  stores  brought  them  forth.  Hence,  the  state 
had  no  store  which  was  not  in  circulation,  and  there  was 
no  one  exposed  to  want.^ 

*  Ch.  XV.     Cheng  Hsiian  gives  the  rate  of  interest  in  his  Annotation 
(see  supra,  p.  474),  but  it  is  only  a  guess. 
"  Classics,  vol.  v,  pt.  ii,  p.  441. 


GOVERNMENT  LOANS  AND  PUBLIC  RELIEF         589 

2.   Their  Application 

(a)  The  System  of  Credit  and  Loans 
Wang  Mang  imitated  closely  the  Duke  of  Chou.  In  561 
(10  A.  D.),  he  decreed  that  the  banking  department  in  the 
office  of  "  five  equalizations  "  should  give  credit  and  loans 
to  the  people.  When  people  were  called  on  for  sacrifice  or 
funeral,  but  had  no  money  to  meet  their  needs,  it  should 
lend  them  the  money  which  came  from  the  income  tax  on 
simple  credit  without  requiring  interest.  The  limit  of  time 
was :  for  sacrifice,  not  later  than  ten  days ;  and  for  funeral, 
not  later  than  three  months.  When  people  were  in  want 
and  wished  to  borrow  money  for  the  purpose  of  production, 
it  should  give  them  loans  according  to  the  order  of  applica- 
tion. Besides  the  covering  of  their  cost  of  production,  the 
government  got  a  tithe  of  their  annual  net  profit  for  the 
profit  of  the  government,  as  an  income  tax.  The  rate  of 
interest  was  3  per  cent  monthly.^  As  there  was  a  distinc- 
tion between  interest  and  profit,  it  shows  that  there  was  an 
advance  in  economic  theory  and  practice.  But  Wang 
Mang  was  killed  in  574,  and  thus  this  scheme  did  not  last 
very  long. 

(b)   System  of  the  Green  Sprout  Money 

Under  the  Sung  dynasty,  the  system  of  constantly  normal 
granary  was  changed  into  the  system  of  "  green  sprout 
money."  This  was  the  most  important  law  of  Wang  An- 
shih.  His  law  was  based  on  the  statement  of  Mencius  and 
the  law  of  the  Official  System  of  Chou.  But  the  peculiar 
features  of  his  law  were  that  it  lent  to  the  people  not  grain, 
but  money ;  and  that  it  lent  money  not  only  to  the  farmers 
but  also  to  the  burghers.  However,  the  primary  purpose 
of  this  law  was  to  lend  money  to  the  farmers.     Hence  the 

^ilistory  of  Hati.  chs.  .xxiv,  xcix. 


^go       'THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

name  of  green  sprout  money  was  given  it, — meaning  that 
before  harvest,  when  the  grain  was  only  a  green  sprout,  the 
government  lent  money  to  the  farmers. 

This  law  was  introduced  in  1620  (1069  A.  D.).  If 
people  wished  to  get  money  in  advance,  they  were  allowed 
to  borrow  it  from  the  government;  and  when  they  paid 
taxes,  they  should  return  grain  for  the  money  they  had 
borrowed.  If  they  wanted  to  borrow  grain  instead  of 
money,  or  if  they  wanted  to  return  money  instead  of  grain 
because  at  the  time  of  return  the  price  of  grain  was  high, 
they  were  allowed  to  do  so.  For  the  crop  of  summer,  the 
money  was  lent  in  the  first  month ;  and  for  that  of  autumn, 
in  the  fifth  month.  If  the  crop  was  bad,  the  farmers  were 
allowed  to  return  grain  at  the  coming  of  another  good  crop. 
This  law  was  intended  to  enable  the  farmers  to  start  to 
work  without  delay,  and  to  prevent  private  money-lenders 
from  taking  advantage  of  the  interval  of  the  harvest  to  get 
usury. 

According  to  history,  the  practice  of  this  law  was  that 
the  loan  of  the  government  and  the  payment  of  the  people 
were  both  in  money,  not  in  grain.  The  annual  rate  of  in- 
terest was  20  per  cent.  In  1625  (1074  A.  D.),  Wang  An- 
shih  said  that  the  government  received  annually  total  in- 
terest from  its  loans  amounting  to  three  million  strings.  In 
1634  (1083  A.  D.),  the  total  issues  of  loan  were  fixed  at 
11,037,772  strings,  and  the  total  collections  on  the  same  at 
13,965,459  strings,  including  interest.  These  two  sums 
were  the  average  amounts  of  three  years,  for  the  issue  and 
the  collection.  But,  when  there  was  a  fixed  amount  for 
issuing  loans,  the  officials  had  to  lend  as  much  money  as  the 
fixed  amount :  and  when  they  wanted  to  get  special  rewards 
or  to  show  their  ability,  the  money  was  lent  even  beyond  the 
fixed  amount.  Therefore,  the  officials  forced  the  people  to 
make  loans.     Again,  when  there  was  a  fixed  amount  for 


GOVERNMENT  LOANS  AND  PUBLIC  RELIEF 


59  i 


collecting  payment,  the  officials  forced  the  people  to  pay 
their  debts  together  with  interest.  For  the  immediate  in- 
terest of  the  government,  it  brought  a  large  sum  of  revenue. 

What  were  the  results  to  the  people?  The  officials 
wanted  to  get  interest  rather  than  to  help  the  people,  so 
they  lent  as  much  money  as  possible.  As  the  rich  did  not 
wish  to  borrow,  they  gave  them  large  sums;  and  as  the 
poor  needed  to  borrow,  they  gave  them  small  sums.  Ac- 
cording to  the  grades  of  wealth,  the  loans  were  distrib- 
uted. For  example,  the  rule  of  Wang  ivuang-lien  was 
that,  for  the  first  grade  of  family,  fifteen  strings  of  cash 
were  given;  for  the  second,  ten  strings;  for  the  third,  fiv:? 
strings ;  for  the  fourth,  one  string  and  hve  hundred ;  and 
for  the  fifth,  one  string.  Taking  the  rich  and  the  poor  to- 
gether, ten  men  guaranteed  each  other,  and  the  rich  man 
was  made  the  head  of  them.  Hence  the  rich  and  the  poor 
were  both  overburdened  with  debts,  and  were  pressed  by 
the  officials  for  the  return  of  payment. 

Although  the  purpose  of  this  law  was  good  because  it  in- 
tended to  help  people  getting  away  from  usury,  the  practice 
of  it  was  bad,  because  in  the  beginning  it  forced  people  to 
take  loans,  and  in  the  end  it  forced  them  to  pay  debts.  Gen- 
erally, when  it  was  too  easy  for  the  people  to  get  loans,  even 
good  citizens  would  be  careless  and  use  them  for  other 
purposes;  and  when  they  paid  debts,  even  rich  men  would 
delay  their  payment.  Then  the  officials  must  have  had  a 
great  deal  of  trouble.  Moreover,  in  issuing  loans  and  col- 
lecting debts,  there  was  no  way  to  prevent  administrative 
corruption.  This  was  the  chief  reason  for  ihe  failure  of 
this  law. 

Furthermore,  the  law  itself  was  rather  to  get  revenue 
than  to  help  people.  I^rst,  it  made  the  annual  interest  20 
per  cent;  and  second,  it  issued  loans  twice  a  year.  In 
spring,  it  might  be  said  that  the  green  sprout  money  was 


-^2        THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

needed  by  the  farmers;  but  in  summer,  when  the  crop  was 
just  reaped,  why  should  this  money  be  lent  again  for  the 
crop  of  autumn?  The  loan  of  the  fifth  month  was  at  the 
same  time  when  the  debt  of  spring  was  collected.  How 
could  the  people  make  profit  out  of  such  a  loan?  It  was 
clear  that  the  government  purposely  wanted  to  get  interest. 
From  1620  to  1636  (1069- 1085  A.  D.),  the  green  sprout 
law  continued  for  seventeen  years.  In  1637,  when  the  new 
emperor.  Sung  Che  Tsung,  came  to  the  throne,  and  the  party 
opposing  Wang  An-shih,  Ssu-ma  Kuang,  came  into  power, 
this  law  was  abolished.  In  1645,  ^^ter  the  empress  dow- 
ager, the  regent,  had  died,  when  the  followers  of  Wang 
An-shih  returned  to  power,  this  law  was  revived.  But  they 
made  some  reforms  in  the  law.  First,  the  annual  interest 
was  reduced  to  10  per  cent.  Second,  the  amount  of  loans 
was  not  fixed,  so  the  officials  were  not  obliged  to  force  the 
people  to  borrow  money.  Third,  there  was  no  special  re- 
ward for  the  officials  who  made  more  interest,  so  it  pre- 
vented them  from  forcing  the  people  to  make  loans.  In 
1674  there  was  still  another  decree  to  regulate  the  loans. 
This  law  was  ended  by  the  fall  of  the  Northern  Sung 
dynasty  (1677,  or  1126  A.  D.).^ 

(c)  System  of  Exchanges^ 
Besides  the  system  of  green  sprout  money,  in  1623  (1072 
A.  D.),  Wang  An-shih  established  the  government  ex- 
change. In  that  exchange  the  people  were  allowed  to  bor- 
row money.  There  were  two  ways :  one  was  that  they 
could  pledge  their  land,  houses,  gold,  silver,  etc. ;  and  the 
other  was  that  when  they  had  no  pledge,  they  should  get 
three  men  together  to  form  a  guarantee.  In  the  first  case, 
this  resembled  a  pawn  shop ;  in  the  second  case,  it  resembled 

'  History  of  Sung,  ch.  clxxvi.     General  Research,  ch.  xxi. 
2  See  also  supra,  pp.  565-7. 


•  GOVERNMENT  LOANS  AND  PUBLIC  RELIEF         593 

a  loan  bank.  The  annual  rate  of  interest  in  both  cases  was 
20  per  cent.  If  the  payment  was  later  than  the  due  time, 
besides  the  regular  interest,  there  was  a  fine  at  the  rate  of 
2  per  cent  a  month. 

When  the  people  fell  into  debt  and  could  not  pay 
even  the  interest,  however,  how  could  they  pay  the  fine? 
Even  the  punishment  of  imprisonment  was  in  vain.  In 
1630  a  new  law  was  enacted  that  the  loan  should  be  issued 
only  on  a  pledge  of  property,  and  that  the  annual  rate  of 
interest  should  be  reduced  to  12  per  cent.  Those  people 
who  had  no  pledge  but  a  simple  guarantee,  should  not  be 
given  loans.  Except  the  principal  and  interest,  all  fines  be- 
fore the  date  when  the  law  was  enacted  should  be  remitted, 
and  these  amounted  to  several  hundred  thousand  strings. 
For  the  indebted  people,  days  of  grace  were  given,  the  length 
of  a  half  year  for  the  payment  of  principal  and  interest. 

In  1 63 1  the  amount  of  loan  due  to  the  exchange  of  the 
capital  city  was  fixed  at  not  more  than  three  million  strings; 
and  in  all  provinces  it  should  not  be  more  than  one-fourth 
of  that  amount.  In  1633  the  emperor  decreed  that  debts 
due  to  all  the  exchanges  should  be  paid  off  at  the  length  of 
three  years,  and  by  the  way  of  monthly  instalments.  This 
was  for  the  benefit  of  the  people.^ 

(d)   System  of  Faivn  Shops 

Besides  the  exchanges  which  had  the  characteristics  of 
pawn  shops,  there  were  also  real  government  pawn  shops, 
under  that  name.  In  1632  (1081  A.  D.).  by  the  proposal 
of  Chia  Ts'ing,  four  pawn  shops  were  established  in  the 
capital.  In  1633  they  were  established  in  the  districts  near 
the  capital,  and  in  the  next  year  they  were  over  the  whole 
empire.     Among  the  five  provinces,  each  had  one  hundred 

'  History  of  Sung.  ch.  clxxxvi.    General  Research,  ch.  xx. 


594 


THE  ECONOMIC  PRINCIPLES  OP  CONFUCIUS 


thousand  strings  for  the  capital  of  the  pawn  shops;  and 
among  the  rest,  each  had  fifty  thousand  strings.  The  an- 
nual rate  of  interest  was  not  over  20  per  cent. 

The  pawn  shop  also  did  commercial  business,  because  it 
was  allowed  to  exchange  commodities  with  the  people.  The 
functions  of  pawn  shops  and  of  exchanges  overlapped  each 
other,  and  the  two  institutions  were  connected  with  each 
other.  How  long  the  system  of  pawn  shops  lasted  is  un- 
known, but  since  the  date  of  1679  (1128  A.  D.)  it  does  not 
appear  in  history.^  Probably  it  died  out  not  very  long 
after  that  date. 

3.  Conclusion 

The  lending  of  money  by  the  government  presents  the 
difficulty  of  accomplishing  two  things  at  the  same  time: — 
namely,  aid  to  the  poor  people  and  revenue  to  the  state.  If 
it  is  a  purely  social  scheme,  as  advocated  by  Mencius  and  in 
the  Official  System  of  Chou,  it  may  be  successful  for  the 
help  of  the  people.  If  it  is  a  purely  financial  scheme,  with 
a  good  administration  like  that  of  a  private  business,  it 
may  be  successful  for  the  interest  of  the  state.  But  if  it 
tries  to  accomplish  the  two  objects  at  the  same  time,  it  must 
fail  on  both  sides.  As  the  primary  purpose  of  this  scheme 
is  for  the  help  of  the  poor,  the  loan  ought  to  be  given  only 
to  the  poor.  But,  when  the  poor  borrow  money,  it  is  cer- 
tainly difficult  for  them  to  pay  back  not  only  the  interest, 
but  also  the  principal.  How  should  the  government  treat 
them?  If  their  indebtedness  should  be  swept  away,  it  would 
be  a  loss  to  the  state;  if  it  should  be  demanded,  it  would  be 
a  great  trouble  to  the  people.  It  must  fail  either  way. 
Wang  Mang  and  Wang  An-shih  are  examples  of  this. 

However,  why  did  the  green  sprout  money  still  bring  a 

*  History  of  Sung,  ch.  clxxxvi. 


GOVERNMENT  LOANS  AND  PUBLIC  RELIEF 


595 


great  revenue  to  the  state?  Because  this  money  was  lent 
more  to  the  rich  than  to  the  poor,  and  because  the  rich  were 
obHged  to  guarantee  the  credit  of  the  poor.  The  scheme  of 
green  sprout  money  was  partially  for  the  purpose  of  reve- 
nue, so  that  it  was  somewhat  successful  in  this  aspect ;  but 
it  was  hardly  of  any  great  benefit  to  the  poor.  However, 
from  the  experience  given  by  history,  the  loan  on  pledge  is 
much  better  than  on  personal  guarantee,  because  the  pledge 
is  convenient  to  both  lender  and  borrower,  and  saves  the 
trouble  of  the  third  party. 

In  the  opinion  of  Liu  An,  government  loans  were  not  a 
good  thing,  so  he  never  extended  any  loan  to  the  people. 
When  some  one  criticized  him  for  this  policy,  he  replied : 

To  allow  the  people  to  obtain  money  without  labor  is  not  the 
blessing  of  the  state,  and  to  let  the  officials  collect  debts  in  an 
arbitrary  manner  is  not  the  convenience  of  the  people.  Al- 
though I  do  not  lend  anything  to  them,  I  know  the  crops  and 
the  prices  of  every  place  in  a  short  time.  When  the  price  is 
low,  I  buy  the  commodities,  and  when  it  is  high,  I  sell  them. 
Thus  no  place  has  ever  suffered  the  trouble  which  comes 
either  from  a  very  high  price  or  from  a  very  low  price.  Why 
should  I  need  to  give  them  any  loan  ?  ^ 

This  statement  is  good,  but  it  is  good  only  for  Liu  An. 
because  no  man  can  make  the  condition  of  the  people  such 
that  they  do  not  need  loans,  as  he  did.  Generally,  the  people 
do  need  the  loan  of  money ;  if  the  government  provides  loans 
to  them  at  the  lowest  rate  of  interest,  it  may  help  them  a 
good  deal,  and  do  away  with  usury.  But  it  must  not  be 
mixed  up  with  the  purpose  of  raising  revenue:  if  it  is,  how 
can  this  be  better  than  private  lenders? 

*  History  of  Sung.  ch.  clxxvi. 


-96       THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

According  to  the  theory  of  Ma  Tuan-lin,  government  loan 
is  good  in  the  feudal  stage,  but  not  good  in  the  stage  of  ab- 
solute monarchy  with  a  provincial  system.  Under  the  Three 
Dynasties,  not  only  could  such  a  great  sage  as  the  Duke 
of  Chou  successfully  lend  money  to  the  people,  but  even 
ordinary  men  could  do  so.  After  that  period,  not  only 
could  Wang  Mang  and  Wang  An-shih  not  succeed,  but  even 
a  sage  would  have  failed.  The  reasons  are  simply  that  in 
the  feudal  stage  the  interests  of  the  ruler  are  identified  with 
those  of  the  people,  because  the  ruler  holds  by  hereditary 
right,  and  the  administration  is  easy  because  the  imperial 
state  and  the  feudal  state  are  all  small ;  and  that,  in  the  pro- 
vincial system,  with  a  temporal  administration  of  the  offi- 
cials, they  are  strangers  in  the  beginning,  and  cannot  accom- 
plish their  work  before  they  go  away  after  a  term  of  three 
years.  Therefore,  when  the  government  attempts  to  apply 
the  laws  of  the  Official  System  of  Chou,  it  is  a  useless  trouble 
to  the  government  as  well  as  to  the  people.  Hence,  from 
the  Ch'in  dynasty  down,  the  government  has  preferred  the 
laissez-faire  policy.^ 

This  theory  of  Ma  Tuan-lin  is  correct,  but  it  seems 
to  us  that  some  laws  of  the  Official  System  of  Chou  can  be 
applied  in  the  modern  democratic  society.  Take  the  gov- 
ernment loan  for  example.  If  the  government  were  really 
in  the  hands  of  the  people,  the  interest  of  the  people  and  that 
of  the  government  would  be  the  same.  Under  such  a  con- 
dition, the  government,  especially  the  officials,  can  do  no 
wrong  to  the  people,  and  with  a  good  system  of  administra- 
tion in  every  way,  the  government  loan  at  lowest  interest 
may  not  only  help  out  the  needs  of  the  people,  but  also 
raise  revenue  for  the  state.  Wang  An-shih  was  a  great 
statesman  indeed,  but  he  lived  either  too  late  or  too  early. 

*  General  Research,  ch.  clxxx. 


GOVERNMENT  LOANS  AND  PUBLIC  RELIEF 


597 


Had  his  whole  plan  been  carried  out,  China  would  have 
been  a  modern  state  one  thousand  years  ago. 

II.    PUBLIC    RELIEF 

I.  Principles  of  Confucius 
Although  Confucius  wishes  everyone  to  be  economically 
independent,  there  are  many  unfortunate  people  who  cannot 
have  economic  independence.      Hence  they  need  public  re- 
lief.    The  "  Royal  Regulations  "  says : 

One  who  while  quite  young  loses  his  father  is  called  an 
orphan ;  an  old  man  who  has  no  son  is  called  a  solitary  one ; 
an  old  man  who  has  no  wife  is  called  a  widower;  and  an  old 
woman  who  has  no  husband  is  called  a  widow.  These  four 
classes  are  the  poorest  of  Heaven's  people,  and  have  none  to 
whom  to  tell  their  wants.  They  all  should  receive  regular 
allowances.' 

This  is  the  law  of  Confucius.  Mencius  gives  an  historical 
fact  to  support  this  theory.  He  says:  ''  Wen  Wang,  in  the 
institution  of  his  government  with  its  benevolent  action, 
made  them  the  first  objects  of  his  regard."  " 

These  four  classes  are  either  too  young  or  too  old  for 
work;  hence  the  state  supports  them  by  a  regular  allow- 
ance without  requiring  them  to  labor.  But  there  is  another 
kind  of  unfortunate  people  who  can  work  but  have  difficulty 
in  finding  their  particular  kind  of  employment  by  them- 
selves. Therefore,  the  "Royal  Regulations"  says:  *' The 
dumb,  the  deaf,  the  lame,  those  have  lost  a  member,  the 
pygmies,  and  the  artisans,  are  all  fed  according  to  what 
work  they  are  able  to  do."  **      Except  the  last  class,  all  the 

'  Li  Kx,  bk.  iii,  pp.  243-4- 
'  Classics,  vol.  ii,  p.  162. 
'  Li  Ki,  bk,  iii,  p.  244.     See  also  Ilsun  Tzu,  bk.  ix. 


398        'THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS      ' 

five  kinds  of  people  have  physical  defects,  and  find  it  very 
difficult  to  make  their  own  living.  Even  among  the  last 
class,  those  who  have  a  particular  profession  or  art,  may  be 
out  of  employment  under  many  circumstances  and  cannot  be 
self-supporting.  Therefore,  public  relief  is  necessary.  Since 
they  are  neither  too  old  nor  too  young,  and  their  physical 
condition  still  allows  them  to  work  although  having  some 
defect,  and  since  the  artisans  have  their  handicrafts,  they 
are  not  given  regular  allowances,  but  simply  supported  by 
their  own  labor  at  tasks  which  are  provided  by  the  state. 
The  state  gives  great  help  to  them,  but  does  not  waste  the 
public  money.  The  people  get  some  dependence,  but  still 
live  upon  their  own  work  without  disgrace.  This  way  is  in 
the  middle  course  between  charity  and  justice. 

2.  Historical  Facts 
The  principle  of  giving  special  favor  to  the  widower, 
widow,  etc.,  was  first  put  in  practice  by  Han  Wen  Ti  {272i 
A.  K.  or  179  B.  C),  but  it  was  well  established  by  the 
Sung  dynasty.  After  1608  (1057  A.  D.),  the  government 
established  a  granary  in  each  district  for  the  storing  of  rice 
which  came  from  the  public  land  as  a  rent.  From  the  first  of 
the  eleventh  month  to  the  end  of  the  third  month  of  the  next 
year,  one  pint  of  rice  was  given  to  each  person  every  three 
days,  and  the  children  received  half  the  amount.  In  1654 
f  1103  A.  D.)  this  idea  was  carried  too  far,  and  it  became 
too  expensive.  In  the  almshouse,  food,  clothes,  and  beds 
were  all  given;  servants,  cooks,  and  nurses  were  all  sup- 
plied. In  1671  (1120  A.  D.)  the  following  law  was  fixed: 
when  the  poor  lived  in  the  almshouse,  one  pint  of  rice  was 
given  to  each  every  day,  and  the  children  got  half  this 
amount.  The  old  regulations,  that  ten  coins  were  daily  dis- 
tributed, and  five  coins  for  charcoal  were  added  from  the 
eleventh  month  to  the  first  month,  were  abolished.^ 

*  History  of  Sung,  ch.  clxxviii. 


GOVERNMENT  LOANS  AND  PUBLIC  RELIEF 


599 


Yiian  Shih  Tsu  issued  decrees  ten  times  for  the  relief  of 
the  widower,  widow,  etc.  We  may  give  a  few  examples. 
In  the  eleventh  month  of  1820  (1269  A.  D.),  he  decreed 
that  all  the  provinces  give  monthly  two  pecks  of  rice  to  each 
of  the  poor;  and  in  the  first  month  of  1822,  he  decreed  that 
they  establish  almshouses  for  the  shelter  of  the  poor,  and 
give  them  fuel,  besides  food.  In  1842  (1291  A.  D.)  he 
granted  clothes  for  summer  and  winter  to  the  widows,  and 
in  the  following  year  he  gave  the  poor  five  catties  of  fuel 
every  day. 

Ming  T'ai  Tsu  decreed  several  times  to  support  the 
widower,  widow,  etc.  In  1937  (1386  A.  D.)  he  made  the 
following  law  :  among  poor  people,  if  the  age  was  above 
eighty,  five  pecks  of  rice,  three  pecks  of  wine,  and  five  catties 
of  meat  were  given  to  each  of  them  monthly.  If  the  age 
was  above  ninety,  one  roll  of  silk  and  one  catty  of  cotton 
were  added  to  this  amount  annually.  Those  who  owned 
some  farm  land  were  not  given  rice.  To  all  the  four  classes. 
— widower,  widow,  orphan,  the  solitary, — six  bushels  of  rice 
were  given  annually.^ 

In  the  present  dynasty,  every  district  has  an  almshouse. 
According  to  the  Law  Code  of  the  Ts'hig  Dyjiasty,  if  the 
ofiicials  do  not  support  the  four  classes,  the  very  sick  person 
and  the  infirm  and  superannuated  who  need  public  support, 
they  shall  be  punished  with  sixty  blows  of  the  long  stick." 
Therefore,  the  principle  of  Confucius  has  been  put  into 
actual  law,  and  its  effect  differs  only  because  of  the  efficiency 
of  administration. 

What  we  have  mentioned  is  only  one  phase  of  public  relief 
which  is  maintained  permanently.  The  occasional  public 
relief  which  is  issued  during  any  calamity,  such  as  fire,  flood, 

'  Coiitinuatioti   of  the  General  Research,  ch.   xxxii. 
•Ch    viii 


6(X)     THE  Economic  principles  of  Confucius 

or  famine,  is  entirely  left  out.  Here  we  have  simply  indi- 
cated that,  according  to  the  system  of  Confucius,  there  is  a 
positive  institution  for  the  support  of  the  poor. 

3.  Private  Charity 

Working  along  with  public  relief  is  private  charity. 
Confucius  does  not  like  to  have  anyone  possess  a  dispropor- 
tionate amount  of  wealth  over  others;  but  if  one  has  a  great 
fortune  and  deserves  it,  he  likes  to  encourage  him  to  diffuse 
it  in  a  proper  way.    Hence  charitable  works  are  good  things. 

Tzu-kung  says  to  Confucius :  "  Suppose  the  case  of  a  man 
extensively  conferring  benefits  on  the  people,  and  able  to 
sasist  all,  what  would  you  say  of  him?  Might  he  be  called  a 
philanthropist  ?"  "  Why  speak  only  of  philanthropy  in  con- 
nection with  him?"  replies  Confucius.  "  Must  he  not  have 
the  qualities  of  a  sage?  Even  Yao  and  Shun  were  still 
solicitous  about  this."  '  From  this  conversation  we  can  see 
how  highly  Confucius  praises  the  one  who  can  confer  ex- 
tensively benefits  on  the  people  and  assist  all.  Indeed,  there 
IS  even  yet  no  one  who  can  attain  such  an  ideal. 

When  Tzu-lu  asks  about  the  wishes  of  Confucius,  the 
Master  says :  "  They  are,  in  regard  to  the  old,  to  settle  them 
comfortably;  in  regard  to  friends  [who  are  about  the  same 
age  as  mine],  to  make  them  confident  [of  getting  what  they 
want  without  seeking  for  it]  ; '  in  regard  to  the  young,  to 
treat  them  tenderly  [like  a  father  or  a  teacher]."  ^  In  fact, 
this  is  the  principle  of  universal  love;  none  will  be  left  be- 
hind unsatisfied.  It  is  like  heaven,  covering  everything. 
Charitable  works  cannot  reach  such  an  ideal,  but  they  are 
moving  in  this  direction. 

*  Classics,  vol.  i,  p.  194. 

Cf.  Li  Ki,  bk.  xxiii,  p.  257. 

•  Classics,  vol.  i,  p.  183. 


GOVERXMENT  LOANS  AND  PUBLIC  RELIEF         6oi 

For  the  conduct  of  a  Confucian,  Confucius  says :  **Alms- 
giving  and  wealth-distributing  is  the  diffusion  of  human- 
ity." ^  Mencius  says:  "  The  imparting  by  a  man  to  others 
of  his  wealth  is  called  kindness."  '  When  Hsun  Tzu  de- 
scribes the  characters  of  a  scholar,  he  says  that  a  scholar  de- 
lights in  diffusing  his  wealth  to  others,  and  he  feels  ashamed 
if  he  be  rich  alone.^  Here  we  simply  point  out  that  private 
charity  is  the  principle  of  Confucius,  but  we  have  no  need 
to  give  the  historical  facts. 

To-day,  charitable  institutions,  great  or  small,  are  all  over 
different  localities.  They  are  controlled  by  a  body  of  pri- 
vate men,  and  maintained  by  voluntary  contributions.  But 
they  are  really  quasi-public  institutions,  and  far  more  im- 
portant than  the  government  institutions.  Take  those  of 
Canton,  for  example.  They  carry  their  policy  beyond  the 
sphere  of  Kuangtung  province,  and  assume  the  burden  of 
inter-provincial  tasks.  Beside  social  works,  they  come  into 
even  political  and  industrial  activities.  They  may  have  a 
great  development  in  the  future,  provided  that  they  have 
good  men. 

*  Li  Ki,  bk.  xxxviii.  p.  409. 
'  Classics,  vol.  ii,  p.  253. 
»  Bk.  vi. 


PART  IV 
PUBLIC  FINANCE 


BOOK  IX.     PUBLIC  FINANCE 


CHAPTER  XXXII 

Public  Expenditures 

i.  the  term  :  public  finance 

Public  finance  deals  with  the  revenues  and  expenditures 
of  governments  and  is  a  part  of  economics.  In  China, 
pubh'c  finance  has  occupied  nearly  the  whole  field  of  eco- 
nomics, because  statesmen  and  scholars  have  given  their 
attention  mostly  to  it  rather  than  to  private  finance.  There- 
fore, when  the  Chinese  use  the  term  economics  ("  adminis- 
tering wealth  "),  the  hearer  may  generally  narrow  its  mean- 
ing to  public  finance.  But  in  the  Chinese  language  there  is 
a  special  term  for  public  finance — "  national  expenditures  " 
[ktio  yung).  This  term  first  occurs  in  the  ''  Royal  Regu- 
lations," and  it  is  used  by  Ma  Tuan-lin  as  the  name  of  a 
book  in  his  great  encyclopedia.'  It  seems  unscientific,  be- 
cause it  indicates  expressly  only  expenditures.  But  it  in- 
cludes revenue  as  well  as  expenditures,  since  there  can  be  no 
expenditures  without  revenue.  The  reason  why  this  term 
includes  only  expenditures  is  because  it  is  characteristic  of 
the  Chinese  language  generally  to  avoid  using  more  than 
two  characters  to  express  a  single  concept. 

However,  if  we  want  to  adopt  a  term  more  scientific  than 
*'  national  expenrlitures,"  we  may  use  the  more  popular  term 
**  national  accounting"  (kuo  clii).     This  term  is  ver)-  old, 

'  (n'urral  Research .  chs    xxiii-xxvii. 

605 


6o6       THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

and  it  is  used  for  the  title  of  a  book  during  the  Tang  dy- 
nasty. Or,  we  may  use  the  word  ''  accounting  "  only  {kuei 
chi).  This  term  is  used  by  Confucius/  Furthermore,  we 
may  adopt  the  term  **  wealth  and  expenditures"  {ts'ai 
yung) ,  a  better  translation  being  revenue  and  expenditures. 
It  occurs  in  the  "  Great  Learning  "  and  the  ''  Doctrine  of 
the  Mean,"  and  is  spoken  of  by  Mencius.^  All  these  three 
terms  may  be  used  in  the  sense  of  the  English  term,  public 
finance.  The  only  difference  among  them  is  that,  while  the 
first  denotes  public  finance  only,  the  last  two  may  be  applied 
to  both  public  and  private  finance. 

II.    NECESSITY    OF    PUBLIC    FINANCE 

The  question  may  be  raised,  why  should  we  have  public 
finance  at  all?  In  other  words,  why  should  we  have  gov- 
ernment ?  According  to  the  theory  of  Hsu  Hsing,  the  ruler 
should  live  individually  by  his  own  labor,  and  should  not 
have  granary,  treasury,  or  arsenal.  If  a  ruler  has  such 
things,  he  is  an  oppressor  of  the  people  for  his  own  support.^ 
y\lthough  Hsii  Hsing  was  not  an  anarchist,  his  theory  is 
that,  while  there  is  a  government,  there  should  not  be  public 
finance.     This  is  an  impossible  ideal. 

As  we  have  seen,  the  government  exists  chiefly  for  the 
economic  interest  of  the  people.  Now,  if  it  is  productive, 
why  should  they  not  support  it?  According  to  Confucius, 
government  is  the  result  of  the  division  of  labor,  and  public 
finances  are  necessary  for  the  support  of  the  public  laborers 
Mencius  says : 

There  is  the  saying,  "  Some  labor  with  their  minds,  and  some 
labor  with  their  strength."    Those  who  labor  with  their  minds 

^  Classics,  vol.  ii,  p.  383. 

'  Classics,  vol.  i,  pp.  380,  409 ;  and  vol.  ii,  p.  483. 

3  Cf.  supra,  p.  385. 


PUBLIC  EXPENDITURES  607 

govern  others ;  those  who  labor  with  their  strength  are  gov- 
erned by  others.  Those  who  are  governed  by  others  support 
them;  those  who  govern  others  are  supported  by  them.  This 
is  a  principle  universally  recognized.^ 

III.    PROPER   PROPORTION    BETWEEN    SOCIAL   INCOME  AND 
PUBLIC    EXPENDITURES 

Since  public  finance  is  necessary,  we  must  ask,  what 
is  the  proper  proportion  between  the  total  social  in- 
come and  the  part  devoted  to  public  expenditures.  As  the 
produce  of  the  land  is  the  chief  source  of  income  of  the 
whole  agricultural  society,  and  the  land  tax  is  the  only 
source  of  income  of  the  government,  we  may  say  that,  ac- 
cording to  Confucius'  system,  the  proper  proportion  is  ten 
to  one ;  that  is  to  say,  ten  per  cent  of  the  total  income  should 
go  to  the  state.  This  is  a  deduction  from  the  taxing  sys- 
tem of  Confucius. 

The  tax  of  one-tenth  is  the  standard  of  Confucius'  sys- 
tem, which  cannot  be  made  heavier  nor  lighter.  The 
Spring  and  Autumn,  the  Great  Commentary  of  the  Canon 
of  History,  and  Mencius,  all  stick  to  this  point.  Not  only 
a  heavier  tax  than  a  tithe  is  bad,  but  also  a  lighter  tax. 
Chieh,  the  last  emperor  of  the  Hsia  dynasty,  was  a  tyrant; 
if  the  tax  took  four-tenths  or  five-tenths,  it  should  be  called 
great  Chieh  ;  if  two-tenths  or  three-tenths,  it  should  be  called 
small  Chieh.  Mo  was  a  common  name  for  the  barbarous 
tribes  on  the  north ;  if  the  tax  took  only  one-fourteenth  or 
one-fifteenth,  it  should  be  called  great  Mo:  if  one-twelfth  or 
one-thirteenth,  it  should  be  called  small  Mo.  In  short,  a 
heavier  tax  injures  the  people,  so  it  is  imposed  only  by  a 
tyrant;  and  a  lighter  tax  cannot  defray  the  necessary  ex- 
pense, so  it  is  found  only  among  barbarians. 

Pai  Kuei  said  to  Mencius:  "  I  want  to  take  only  a  twen- 

•  Classics,  vol.  ii,  pp.  249-50. 


6o8       THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

tieth  of  the  produce  as  the  tax.  What  do  you  think  of  it?" 
Mencius  said :  "  Your  way  would  be  that  of  the  Mo.  In  a 
country  of  ten  thousand  families,  would  it  do  to  have  only 
one  potter  ?"  Pai  Kuei  replied :  ''  No ;  the  vessels  would 
not  be  enough  to  use." 
Mencius  went  on : 

In  Mo  all  the  five  kinds  of  grain  are  not  grown ;  it  pro- 
duces only  millet.  There  are  no  fortified  cities,  no  edifices,  no 
ancestral  temples,  no  ceremonies  of  sacrifice;  there  are  no 
princes  requiring  presents  and  entertainments;  there  is  no 
system  of  officers  with  their  various  subordinates.  On  these 
accounts  a  tax  of  one-twentieth  of  the  produce  is  sufficient 
there.  But  it  is  the  Middle  Kingdom  that  we  live  in.  To 
banish  the  relationships  of  men,  and  have  no  administration 
of  superior  men — how  can  such  a  state  of  things  be  thought 
of?  With  but  few  potters  a  kingdom  cannot  subsist — how 
much  less  can  it  subsist  without  superior  men  ?  ^ 

According  to  Confucius,  the  rule  of  taxation  is  not  the 
lighter  the  better,  and  the  rule  of  public  expenditure  is  not 
the  smaller  the  better.  A  tenth  of  the  social  income  for 
public  expenditures  is  the  proper  limit ;  above  this  the  people 
are  over-burdened,  and  below  this  the  state  is  unable  to 
develop  its  activities. 

IV.    GENERAL    PRINCIPLES    OF    PUBLIC    EXPENDITURES 

The  financial  condition  of  the  state  is  determined  by  its 
political  conditions.  Therefore,  a  statistical  study  of  all  the 
departments  is  necessary  as  the  basis  of  making  a  budget. 
The  "  Royal  Regulations  "  says : 

The  minister  of  accounts  prepares  the  complete  accounts  of 
the  year  to  be  submitted  to  the  emperor,  which  are  reverently 
received  by  the  prime  minister.     The  grand  director  of  music, 

^  Classics,  vol.  ii,  pp.  441-3. 


PUBLIC  EXPENDITURES  609 

the  grand  minister  of  justice,  and  the  minister  of  commerce, 
these  three  officers,  follow  the  minister  of  accounts  with  the 
completed  accounts  of  their  departments  to  be  submitted  to 
the  emperor.  The  grand  minister  of  education,  the  grand  min- 
ister of  war,  and  the  grand  minister  of  works,  reverently  re- 
ceive the  completed  accounts  of  their  several  departments  from 
their  various  subordinates,  and  examine  them,  then  present- 
ing them  to  the  emperor.  Those  subordinates  then  reverently 
receive  them  after  being  so  examined  and  passed  upon.  This 
being  done,  the  aged  are  feasted  and  the  royal  sympathy  shown 
to  the  husbandmen.  The  business  of  the  year  is  concluded, 
and  the  national  expenditures  are  regulated.^ 

According  to  this  statement,  the  national  expenditure  of 
next  year  is  determined  in  the  tenth  month,  when  all  the 
departments  have  reported  their  completed  accounts  to  the 
emperor.  It  seems  to  identify  the  fiscal  year  with  the  calen- 
dar year,  but  the  budget  is  really  prepared  two  months  in 
advance. 

Again,  the  *'  Royal  Regulations  "  says: 

The  prime  minister  must  regulate  the  national  expenditures 
toward  the  end  of  the  year.  When  the  five  kinds  of  grain 
have  all  been  gathered  in,  he  then  regulates  the  national  ex- 
penditures. They  should  be  according  to  the  size  of  the  terri- 
tory, as  large  or  small,  and  the  returns  of  the  year,  as  abundant 
or  poor.  On  the  average  of  thirty  years,  he  regulates  the  na- 
tional expenditures,  controlling  the  outlay  to  make  it  conform 
to  the  income. 

A  tenth  of  the  year's  expenditures  is  for  sacrifices.  ...  A 
tithe  of  three  years'  expenditures  is  allowed  for  the  rites  of 
funeral.  When  there  is  not  sufficient  for  the  rites  of  sac- 
rifices and  funeral,  it  is  owing  to  lavish  waste;  when  there  is 
more  than  enough,  the  state  is  described  as  affluent.  In  sacri- 
fices there  should  be  no  extravagance  in  good  years,  and  no 
niggardliness  in  bad. 

'  Li  Ki,  bk.  iii,  p.  239. 


6io       THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

The  conclusion  is  that  he  must  regulate  the  national  expen- 
ditures in  such  a  way  that  the  government  has  a  surplus 
sufficient  for  ten  years/ 

The  regulating  of  national  expenditure  is  really  the  mak- 
ing of  the  budget.  In  the  system  of  Confucius,  the  budget 
is  prepared  by  the  prime  minister.  Since  the  government 
is  monarchical  in  form,  the  monarchy  cannot  be  changed 
easily  and  frequently,  except  by  peaceful  deposition  or  by 
great  revolution.  But  the  monarchy  is  not  always  good, 
and  the  people  may  suffer  from  a  bad  ruler.  Under  such  a 
government,  Confucius  gives  the  prime  minister  a  great 
power,  and  makes  him  responsible  for  the  whole  adminis- 
tration. Although  he  is  next  to  the  emperor  in  name,  he 
has  the  real  power  of  the  whole  government — as  was  the 
case  of  Shun  and  Yao,  Yii  and  Shun,  Yi  Yin  and  Ch'eng 
T*ang  and  T*ai  Chia,  Fu  Yiieh  and  Kao  Tsung,  the  Duke 
of  Chou  and  Ch'eng  Wang.  This  is  somewhat  like  the  re- 
sponsible ministry  of  modern  constitutional  government. 
Therefore,  the  prime  minister  is  empowered  to  prepare  the 
budget,  because  he  takes  the  political  responsibility.  Al- 
though there  is  no  parliament  to  control  the  budget,  it  is 
better  in  the  hands  of  the  prime  minister  than  in  those  of  the 
emperor. 

The  principle  that  expenditure  should  be  according  to  in- 
come is  important.  It  has  been  recognized  that  this  prin- 
ciple should  be  applied  not  only  to  public  finance,  but  also  to 
private  finance.  Since  the  modern  development  of  the  bud- 
getary system,  however,  some  people  may  think  that  it  is 
good  only  for  private  finance,  while  in  public  finance  this 
principle  should  be  reversed — the  income  should  be  accord- 
ing to  the  outgo.  This  is  quite  a  superficial  view.  From 
the  constitutional  standpoint,   income  is  determined  after 

*  Li  Ki,  bk.  iii,  pp.  221-2. 


PUBLIC  EXPENDITURES  6ll 

expenditure  is  decided  upon:  but  from  the  economic 
standpoint,  expenditure  is  always  regulated  by  income.  The 
budgetary  system  is  simply  a  legal  process ;  but,  fundamen- 
tally, a  budget  never  can  go  beyond  the  social  income.  In 
fact,  social  income  is  the  basis  and  the  regulator  of  public 
expenditure;  hence  this  principle  is  quite  correct. 

Moreover,  in  ancient  China  there  was  no  vote  for  the 
budget,  nor  for  an  increase  in  taxation.  How  could  the 
government  augment  its  income  to  meet  its  expenditures? 
To  do  so  it  would  have  to  make  use  of  its  arbitrary  power 
to  tax  the  people.  Of  course,  Confucius  does  not  allow 
such  a  thing.  Since  he  sets  forth  certain  rules  for  taxation 
which  cannot  be  freely  increased,  expenditure  must  be 
regulated  by  income. 

Although  expenditure  is  subject  to  income,  it  is 
still  elastic.  Tn  the  first  place,  a  budget  is  determined  ac- 
cording to  the  returns  of  the  year.  If  the  returns  are  abun- 
dant, the  taxes  which  come  from  the  produce  of  the  field 
increase;  hence  expenditure  may  be  raised.  If  the  ''e- 
turns  are  poor,  the  taxes  decrease:  hence  the  expenditure 
may  be  cut  down.  This  is  elasticity  depending  upon  the 
conditions  of  the  particular  year.  In  the  second  place,  it 
takes  the  average  of  thirty  years.  Therefore,  even  when 
there  are  many  successive  good  years,  the  government  may 
keep  the  surplus  without  waste;  and  even  when  there  are 
many  successive  bad  years,  it  can  defray  the  expense  with- 
out difficulty. 

There  rises  a  question,  why  should  the  government  keep 
a  surplus  sufficient  for  the  use  of  ten  years?  In  order  to 
understand  this  rule,  we  must  remind  ourselves  that  ancient 
China  was  in  the  agricultural  stage.  In  ancient  times  agri- 
culture depended  mostly  upon  nature.  Roth  flood  and 
drought  might  do  great  harm  to  the  crops.  Therefore,  the 
crops  were  very  uncertain,  and  the  yield  from  taxation  was 


6i2       THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

correspondingly  irregular.  Under  such  circumstances,  if 
the  government  did  not  keep  a  surplus,  how  could  it  provide 
for  the  perpetual  life  of  the  state  during  a  period  of  succes- 
sive bad  years  ?  Therefore,  in  every  three  years  there  must 
be  a  surplus  sufficient  for  one  year.  Taking  this  as  the 
standard,  by  the  end  of  thirty  years  the  government  should 
have  a  surplus  sufficient  for  ten  years.  After  the  sur- 
plus has  reached  this  amount,  the  government  may  remit  the 
future  taxes  to  the  people,  or  may  increase  its  expenditure 
by  extending  its  functions  or  activities.  The  need  for  the 
surplus  being  understood,  there  is  no  danger  that  the  sur- 
plus will  do  harm  to  the  government  by  encouraging  ex- 
travagance. 

As  we  shall  see,  public  finance  in  ancient  times  was  mixed 
up  with  the  private  finances  of  the  ruler.  Therefore,  econ- 
omy was  the  chief  principle.  Confucius  attaches  great  im- 
portance to  this  principle,  as  we  have  indicated  above.  ^ 
Passing  through  all  ages  to  the  present  day,  this  principle 
has  been  recognized  as  the  chief  maxim  of  public  finance. 
The  General  Research  on  the  Literature  and  Authorities  of 
the  Present  Dynasty  makes  '*  economy  "  the  first  section  of 
the  book  of  "  national  expenditures."  In  fact,  economy  is  a 
very  sound  rule,  which  is  specially  important  for  a  mon- 
archical government. 

In  Chinese  history,  there  are  many  emperors  who  prac- 
tised this  principle.  But  the  most  conspicuous  representa- 
tives of  this  type  are  Han  Wen  Ti  and  Sui  Wen  Ti.  They 
both  began  their  reigns  under  very  unfavorable  conditions, 
but  they  made  not  only  the  government  but  also  the  whole 
empire  rich.  They  taxed  the  people  little,  yet  they 
spent  liberally  a  great  amount  of  money  for  the  public 
welfare.     The  fundamental  thing  that  allowed  them  to  do 

1  Cf.  supra,  pp.  79,  361-2. 


PUBLIC  EXPENDITURES  6 1 3 

SO  was  economy.  They  were  frugal  in  their  own  ex- 
penditures. For  example,  Han  Wen  Ti  did  not  dare  to  build 
an  opened  tower  because  it  would  cost  one  hundred  pieces 
of  gold  coin.  He  was  dressed  in  black  silk,  and  his  curtains 
and  screens  were  not  embroidered.  Sui  Wen  Ti  did  not  eat 
more  than  one  meat,  unless  it  was  at  a  public  banquet;  and 
he  did  not  allow  the  use  of  the  cloth-bag  for  keeping  dry- 
ginger,  nor  the  woollen-bag  for  presenting  incense.^  They 
seemed  too  parsimonious,  but  they  were  like  the  type  of  Yii 
who  was  praised  by  Confucius  as  being  frugal  in  personal 
expenditures  and  liberal  in  social  expenditures." 

V.    CLASSIFICATIONS   OF   PUBLIC   EXPENDITURES 

Although  Confucius  gives  no  classification  of  expendi- 
tures, we  may  deduce  two  classifications  from  his  writings. 
But  before  we  give  these  classifications,  we  should  like  to 
present  the  classification  of  the  Official  System  of  Cliou,  in 
order  to  show  the  ideas  (and  perhaps  the  actual  conditions) 
of  the  ancient  Chinese.  According  to  this,  there  are  nine 
classes  of  public  expenditures:  (i)  expenditure  for  sacri- 
fices. (2)  expenditure  for  entertaining  guests,  (3)  expendi- 
ture for  funerals,  and  for  famine  relief,  (4)  expenditure  for 
foorl  and  clothes  of  the  imperial  family,  (5)  expenrliture  for 
various  works,  (6)  expenditure  for  ceremonial  presents,  (7) 
expenditure  for  keeping  oxen  and  horses,  (8)  expenditure 
for  general  distribution  to  the  officials  and  (9)  expenditure 
for  special  gifts  on  certain  occasions.  These  nine  expen- 
ditures are  separately  supplied  by  the  nine  taxes  which  come 
either  from  rlifferent  localities  or  from  different  objects. 
Each  expenditure  has  its  fixed  standard  regulated  annually 
by  the  prime  minister.     Therefore,  the  expenditures  of  the 

^History  of  Han,  ch.  iv;   History  of  Sui,  ch.  xxiv ;    Ma  Tuan-lin's 
remark  in  his  General  Research,  ch.  xxiii. 

2  Cf.  supra,  p.  243. 


6i4       THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

emperor  are  controlled  by  the  prime  minister  and  governed 
by  laws/ 

Such  a  classification,  however,  is  incomplete.  If  we  make 
an  analysis,  the  first  and  part  of  the  third  are  religious  ex- 
penditures; the  second  and  the  sixth  are  social  and  diplo- 
matic expenditures ;  part  of  the  third  is  charitable  expendi- 
ture; the  eighth  may  be  called  general  governmental  expen- 
diture, as  a  distribution  of  salary  to  officials;  the  fifth 
and  the  seventh  may  come  under  both  the  public  expendi- 
tures and  the  private  expenditures  of  the  emperor,  since  the 
fifth  may  include  the  expenditures  of  public  works  and  the 
seventh  may  include  military  expenditures;  the  fourth 
and  the  ninth  are  the  private  expenditures  of  the  emperor. 

If  we  want  to  make  a  classification  of  expenditures  ac- 
cording to  Confucius'  theory,  we  may  base  our  classification 
either  on  the  "  Great  Model  "  or  on  the  ''  System  of  Yao." 
According  to  the  "  Great  Model,"  the  classification  will  be: 
I.  Expenditure  for  economic  functions. 

1.  Agriculture. 

2.  Industry  and  commerce.  ^ 
II.   Expenditure  for  religious  services. 

1.  Sacrifices. 

2.  Funerals. 

III.  Expenditure  for  public  works. 

IV.  Expenditure  for  educational  functions. 
V.  Expenditure  for  judicial  functions. 

VI.  Expenditure  for  social  and  diplomatic  intercourse. 
VII.  Expenditure  for  military  protection. 
This  classification  is  based  on  the  eight  objects  of  govern- 
ment given  in  the  "  Great  Model."     The  first  two  objects 
are  combined  in  the  first  class,  while  we  add  the  word  fun- 
erals to  the  second  class. ^ 

'  Chs.  ii,  vi.  ^  Cf.  supra,  pp.  SO-51. 


PUBLIC  EXPENDITURES  615 

According  to  the  ''  System  of  Yao,"  the  classification 
will  be: 

I.   Expenditure  for  physical  welfare. 

1.  Public  works  dealing  with  the  natural  environ- 
ment, such  as  water  and  earth. 

2.  Agriculture. 

3.  Labor. 

4.  Natural  resources,  such  as  forests,  animals  and 
mines. 

II.  Intellectual  and  moral  welfare. 

1.  Education. 

2.  Religion,  including  spiritual  services  and  social 
entertainment. 

3.  Music. 

III.  Expenditure  for  govermriental  business. 

1.  Justice. 

2.  Secretarial  office. 

This  classification  is  based  on  the  nine  departments  of  the 
"  System  of  Yao."  ^ 

These  two  classifications  are  quite  similar  to  each  other. 
The  expenditures  are  mostly  for  the  people,  and  not  for  the 
government  itself.  They  both  leave  out  the  private  expen- 
diture of  the  monarch.  It  shows  that  Confucius  does  not 
ascribe  much  importance  to  the  expenditure  of  the  ruler. 

So  long  as  there  is  a  monarch,  however,  he  must  make 
expenditures,  and  these  form  a  part  of  public  expenditures. 
In  these  two  classifications,  to  what  class  should  the  expen- 
ditures of  the  monarch  belong?  His  expenditures  should 
be  regulated  by  the  prime  minister,  anrl  the  money  is  sujv 
plied  by  the  department  of  the  treasury.  By  these  two  clas- 
sifications, there  is  no  such  department,  because  Confucius 
lays  more  emphasis  on  the  side  of  the  people  than  on  that 

'  Cf.  supra,  p.  7^. 


6i6       THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

of  the  state.  But  since  this  department  is  necessary,  its 
function  may  be  included  in  the  department  of  agriculture 
(or,  according  to  the  "  Great  Model,"  it  may  be  absorbed 
by  the  department  of  industry  and  commerce).  Even  in 
the  Han  dynasty,  the  secretary  of  the  treasury  department 
was  still  called  "  the  great  minister  of  agriculture."  There- 
fore, these  two  departments  are  to  be  combined  into  one. 

Between  these  two  classifications  there  is  only  one  great 
difference,  that  is,  military  expenditure.^  As  long  as  war 
has  not  been  abolished,  Confucius  still  recognizes  that  mili- 
tary protection  is  a  necessary  expenditure.  Therefore,  the 
army  is  one  of  the  eight  objects  of  the  "  Great  Model." 
But  the  "  System  of  Yao  "  represents  the  ideal  society  of 
Confucius,  and  there  is  no  war  at  all.  Therefore,  it  need:> 
no  military  expenditure,  and  this  classification  is  more  ad- 
vanced than  the  first  one. 

VI.    CHARACTERISTICS    OF   THE    PUBLIC    EXPENDITURES    OF 

THE    ANCIENTS 

We  wish  here  to  point  out  the  marked  features  of  the 
public  expenditures  of  the  ancients.  First,  in  ancient  times, 
the  head  of  the  government  represented  the  sovereignty  of 
the  state,  and  his  income  involved  the  total  revenue  of  the 
state.  Therefore,  there  was  no  distinction  between  his  pri- 
vate expenditures  and  public  expenditures,  and  the  former 
were  parts  of  the  latter.  Or,  we  may  even  say  that 
public  expenditures  were  merely  the  greater  parts  of  his 
private  expenditures,  because  he  was  responsible  for  the 
public  welfare  and  all  public  expenditures.  AJl  the 
heads  of  the  government,  whether  the  emperor,  r)r  the 
princes  of  the  feudal  states,  or  the  great  officials  of  the 
noble  families — in  short,  anyone  who  owned  the  land  of  his 

'  Since  the  sixth   class  of  the  first   classification  is  included   in  the 
religion  of  the  second  one,  there  is  no  great  difference  at  that  point. 


PUBLIC  EXPENDITURES  617 

domain,  whether  large  or  small — received  the  land  tax  as 
income,  and  this  tax  was  the  chief  revenue  of  the  whole 
government.  Therefore,  there  was  great  confusion  in  the 
theories  of  public  finance. 

In  the  '*  Royal  Regulations,"  however,  a  distinction  is 
drawn  between  imperial  and  official  expenditures,  al- 
thought  it  is  not  clear.  ft  is  said :  "  The  land  tax 
from  the  first  hundred  miles  square  of  the  emperor 
serves  to  supply  the  needs  of  the  various  public  offices ;  that 
from  the  rest  of  the  thousand  miles  square  is  for  the  im- 
perial expenditures."  *  This  shows  an  advance  in  the  prin- 
ciples of  finance,  because  it  separates  the  expenditures  used 
in  the  various  offices  from  those  used  by  the  emperor.  But 
this  separation  is  !iot  complete,  because  imperial  expen- 
ditures still  involve  a  large  part  of  public  expenditures.  Tht: 
official  expenditures  used  in  the  various  offices  are  only  the 
general  expenditures  common  to  all  the  different  depart- 
ments, in  order  to  keep  the  offices  going.  The  reason  why 
the  limited  revenue  which  comes  from  the  first  hundred 
miles  square  only  can  su])])ly  the  needs  of  the  offices,  will  be 
explained  by  the  next  point. 

According  to  the  Official  System  of  CJiou,  besides  the 
great  treasury  which  controlled  all  the  revenues,  there  were 
the  treasury  of  jade,  the  inner  treasury,  and  the  outer  treas- 
ury. The.se  three  treasuries  seemed  to  be  separated  from 
the  great  treasury,  and  supplied  the  expenditures  of  the  im- 
perial family,  although  they  were  mixed  up  with  some  public 
expenditures.^  Therefore,  since  the  Han  dynasty,  the  gov- 
ernment has  always  had  two  kinds  of  treasuries:  one  for 
public  expenditures,  and  the  other  for  the  private  expendi- 
tures of  the  emperor.  The  good  emperor  may  use  the  pri- 
vate  treasury    for    public   e.xpcnditures,    and    the   bad    em- 

'  Li  Kx.  I)k.  iii,  p.  ju.  -' Ch.  vi. 


6i8       2'H£  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

peror  may  use  the  public  treasury  for  private  expen- 
ditures. This  is  the  sign  of  a  government,  either  good 
or  bad. 

Second,  the  salaries  of  the  officials  included  the  adminis- 
trative expenditure  of  their  offices.  Just  as  the  income  of 
the  head  of  the  government  included  the  general  expendi- 
ture of  the  state,  so  the  income  of  the  officials  included  the 
particular  expenditures  of  their  departments.  There  v^ere 
two  kinds  of  officials  :  most  of  the  high  officials  were  granted 
the  public  land  and  collected  the  land  tax  at  a  certain  rate 
for  their  salaries,  the  other  or  low  officials  received  salaries 
directly  from  the  government.  In  both  cases  they  were 
responsible  for  their  administrative  expenditure.  Therefore 
the  land  tax  from  the  first  hundred  miles  square  might  be 
sufficient  to  supply  the  general  needs  of  the  various  offices. 
If  the  officials  were  good,  they  spent  liberally  of  their  salaries 
for  the  public  expenditures;  if  they  were  bad,  they  did  the 
opposite,  for  their  personal  use,  but  they  might  lose  their 
offices.  The  salary  of  the  officials  was  the  chief  item  of 
public  expenditures,  because  it  included  administrative  ex- 
pense; but  its  larger  part  was  not  paid  out  by  the  public 
treasury  at  all,  because  the  land  tax  which  belonged  to  the 
officials  went  directly  to  them. 

Among  the  nine  standard  rules  of  a  government,  Con- 
fucius gives  the  fifth  as  "  kind  and  considerate  treatment  of 
the  whole  body  of  officers."  As  to  the  details  and  purpose 
of  this  rule,  he  says :  ^'According  to  them  a  generous  confi- 
dence, and  making  their  salaries  large:  this  is  the  way  to 
encourage  the  body  of  officers."  ^  In  fact,  when  the  officers 
do  not  own  any  public  land  and  receive  salaries  directly 
from  the  government,  Confucius  advocates  the  principle  of 
giving  them  large  salaries.     For  the  salary-system  of  Con- 

^  Classics,  vol.  i,  pp.  408-410. 


PUBLIC  EXPENDITURES  619 

fucius,  we  have  already  referred  to  Mencius  and  the  *'  Royal 
Regulations."  ^ 

Third,  the  military  expenditures  were  small  in  com- 
parison with  modern  times.  ( i )  There  was  no  special  class 
called  soldiers.  All  the  men  at  a  certain  period  of  life  were 
soldiers,  so  there  was  no  need  of  expenditures  for  the  sup- 
port of  a  standing  army.  (2)  The  people  furnished  much 
of  their  own  equipment  for  military  service,  while  the 
government  paid  neither  salaries  nor  wages.  (3)  There 
was  no  transportation  of  food.  When  the  army  went  out, 
the  men  carried  some  food,  but  except  for  this,  it  was  sup- 
ported by  the  feudal  states  through  which  it  passed  or  in 
which  it  stayed.  Therefore,  military  expenditures  were  not 
an  important  part  of  public  expenditures,  and  it  was  chiefly 
for  this  reason  that  only  a  small  amount  of  public  revenue 
was  needed. 

Fourth,  religious  expenditures  were  too  great.  The 
ancients  spent  a  large  part  of  public  money  for  the 
service  of  spiritual  beings,  and  such  expenditures  were  really 
private  expenditures  of  the  monarch.  Tn  the  ''  Royal 
Regulations,"  Confucius  sets  the  hmits  to  such  expenditures, 
as  we  indicated  above.  Since  sacrifices  are  regular,  the  ex- 
penditure for  them  is  limited  to  a  tenth  of  the  total  expen- 
diture of  one  year;  and,  since  funerals  are  irregular  and  in- 
frequent, the  exi)en(h'ture  for  them  is  confined  to  a  tenth  of 
that  of  three  years.  .Although  the  expenditure  appropriated 
for  funerals  is  greater  than  that  for  sacrifices,  the  former  is 
really  smaller  than  the  latter  when  we  compare  them  through 
a  period  of  years.  But.  during  the  time  of  mourning,  most 
of  the  sacrifices  are  onn'tted.  This  is  one  reform  of  Confu- 
cius. ^'et,  according  to  his  ideals,  the  limits  for  the  relig- 
ious expenditures  set  forth  in  the  '*  Royal  Regulations  "  are 

»  Cf.  supra,  pp.  491-3. 


620       THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

Still  too  large.  In  fact,  they  serve  as  a  check  for  the  an- 
cients only,  and  they  should  be  narrowed  to  the  smallest 
limit  as  society  progresses. 

In  conclusion,  we  may  say  that  the  chief  part  of  public 
expenditure  is  shifted  according  to  the  Three  Stages:  In 
the  Disorderly  Stage,  the  greater  part  of  public  expenditures 
is  spent  for  the  monarch  himself,  including  religious  ex- 
penditures; in  the  Advancing  Peace  Stage,  for  the  state, 
military  expenditures  being  the  chief  item;  and  in  the  Ex- 
treme Peace  Stage,  for  the  people,  the  fostering  of  their 
physical,  mental  and  moral  welfare  being  the  chief  aim. 
This  is  the  principle  of  the  Three  Stages  of  Confucius. 
And  we  may  judge  the  nations  or  ages  by  this  standard  and 
see  in  which  direction  they  are  tending. 


CHAPTER  XXXIII 

Taxation  in  General 

Some  of  the  socialistic  policies  which  we  have  discussed 
provide  special  sources  of  public  revenue.  But,  according 
to  the  principles  of  Confucius,  those  policies  should  be 
adopted  not  for  the  sake  of  getting  revenue,  but  for  that  of 
distributing  equal  wealth  to  the  people.  Therefore  we  shall 
not  consider  them  in  our  discussion  of  sources  of  revenue. 
Under  this  head  we  shall  take  up  only  taxes.. 

I.     development  of  taxation  in  the  earliest  times 

Some  information  in  regard  to  the  development  of  taxa- 
tion is  given  by  the  terms  applied  to  the  tax  systems  of  the 
Three  Dynasties.  According  to  Mencius,  the  tax  system  of 
the  Hsia  dynasty  was  called  kung,  *' tribute;"  that  of  the 
Yin  dynasty,  tsu,  "assistance;"  and  that  of  the  Chou  dy- 
nasty, ch'c,  '*  assessment."  Mencius  does  not  explain  the 
word  kung,  because  it  is  clear  by  itself.  He  comments  on 
the  other  two  words  as  follows:  "Ch'c  means  an  exaction 
[from  the  people],  and  tsu  means  dependence  [of  the  gov- 
ernment]." ^ 

During  the  Hsia  dynasty,  when  the  central  government 
was  first  well  organized,  the  people  were  glad  to  pay  their 
tax  as  a  present.  Hence  the  tax  system  was  called  kung,  a 
voluntary  gift  of  the  people  to  the  government.  During  the 
Yin  dynasty,  the  people  felt  that  they  were  doing  the  gov- 
ernment a  favor.     Hence  it  was  called  tsu,  an  assistance  of 

'  L  lassies,  vol.  ii.  pp.  240241. 

621 


622       THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

the  people  for  the  government,  or  a  "  dependence  "  of  the 
government  upon  the  people.  During  the  Chou  dynasty, 
the  government  had  the  independent  power  to  tax  the  people. 
Hence  it  was  called  ch'e,  a  universal  assessment  upon  the 
land,  and  a  compulsory  exaction  from  the  people.  It  is  in- 
teresting to  see  that  these  three  terms  are  sufficient  by  them- 
selves to  indicate  the  historical  development  of  the  tax 
system.^ 

Although  the  system  of  the  Chou  dynasty  reached  the 
highest  development,  the  Confucians  preferred  the  system 
of  the  Yin  dynasty.  The  "  Royal  Regulations  "  says :  ''An- 
ciently, the  public  fields  were  cultivated  by  the  united  labors 
of  the  farmers,  who  paid  no  tax  from  the  produce  of  their 
private  fields."  ^  Mencius  says :  ''  If  a  ruler  require  the  far- 
mers' assistance  for  cultivating  the  public  fields,  and  exact 
no  other  taxes  from  them,  then  all  the  farmers  of  the  world 
will  be  pleased,  and  wish  to  plough  in  his  fields."  ^ 

The  reason  why  the  Confucians  preferred  the  system  of 
Yin  grows  out  of  their  concern  for  the  good  of  the  people. 
When  the  people  render  their  labor  to  the  public  fields  with- 
out paying  other  taxes,  it  does  not  necessarily  mean  that 
they  would  neglect  their  duty.  On  the  contrary,  if  there 
were  a  good  government,  they  would  care  first  for  the  public 
and  then  for  their  private  interests.  The  Canon  of  Poetry 
says :  "  May  it  rain  first  on  our  public  fields,  and  then  come 
to  our  private!"*  This  is  the  sentiment  of  unselfish 
people  under  a  good  government.  Therefore,  Ku-liang's 
Commentary  says :  ''  When  the  crop  of  the  private  fields  is 
not  good,  the  officials  should  be  blamed;  when  that  of  the 

'  Cf.  Seligman's  Essays  in  Taxation,  pp.  5-7. 
^  Li  Ki,  bk.  iii,  p.  227. 
'  Classics,  vol.  ii,  p.  200. 
^  Ibid.,  vol.  iv,  pt.  ii,  p.  381. 


TAXATION  IN  GENERAL  623 

public  tields  is  not  good,  the  people  should  be  blamed."  ^ 
The  former  case  shows  that  the  officials  urge  the  people  t(3 
work  especially  for  public  interest  and  leave  out  private 
onest  while  by  the  latter  is  meant  that  the  people  pay  special 
attention  to  private  and  neglect  public  interests.  Therefore, 
the  system  of  assistance  or  services  binds  the  government 
and  the  people  as  one  body.  The  government  should  look 
after  private,  and  the  people  after  public  interests.  This 
is  the  socialistic  idea  of  Confucius. 

His  principle  is  like  the  political  philosophy  of  the  West, 
**  no  taxation  without  representation."  For,  by  the  "  assess- 
ment "  system,  the  government  has  arbitrary  power,  and 
the  people  are  merely  tax-payers;  but  by  the  "assistance"' 
system,  the  government  is  a  dependent,  and  the  people  are 
the  assistants.  Therefore,  Confucius  makes  the  latter,  from 
his  philosophical  point  of  view,  a  model  tax  system,  irre- 
spective of  the  fact  that  the  former  is,  historically,  a  more 
developed  form.  To-day,  in  the  constitutional  governments 
whose  people  control  taxation,  there  is  fundamentally  the 
same  principle  as  that  of  tlie  "  assistance  "  system  adv(v 
cated  by  Confucius. 

Furthemiore.  a  tax  system  should  accord  with  tiie  ability 
of  the  people.      Mencius  quotes  a  statement  of  Lung  Tzu 
an  ancient  worthy,  as  follows : 

For  regulating  the  lands,  there  is  no  better  system  than  that 
of  assistance,  and  none  is  worse  than  that  of  tribute.-  Hy  {\v: 
tribute  system,  the  regular  amount  of  taxation  is  fixed  by  tak- 
ing the  average  of  several  years.  In  good  years,  when  the 
grain  lies  about  in  abundance,  much  may  be  taken  without  its 
being  oppressive;  but   the  actual   exaction   is   small.      In   bad 

'  Fifteenth  year  of   Duke   Ilsiian. 

'  What  Lung  Tzu  means  by  the  system  of  tribute  is  not  the  system 
of  the  Hsia  dynasty,  but  the  practice  of  the  period  of  Warring  States 


624       ^^^  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

years,  the  produce  being  not  sufficient  to  repay  even  the 
manuring  of  the  fields,  this  system  still  requires  the  full 
amount.  A  ruler  is  the  parent  of  the  people.  But  the  people 
are  made  to  wear  looks  of  distress,  that  they,  after  the  whole 
year's  toil,  are  not  able  to  nourish  their  parents.  Furthermore, 
they  are  obliged  to  borrow  money  at  one  hundred  per  cent  in- 
terest to  remit  their  deficit  due  to  the  paying  of  the  tax. 
Owing  to  this,  old  people  and  children  are  found  lying  in 
the  ditches  and  water-channels.  Where,  in  such  a  case,  is  his 
parental  relation  to  the  people  ?  ^ 

Now,  according  to  the  system  of  "  assistance,"  the  gov- 
ernment requires  no  regular  amount  of  tax  from  the  people, 
and  the  people  pay  taxes  in  accordance  with  their  annual 
condition.  It  is  the  same  principle  as  that  of  the  modern 
budget  which  is  renewed  every  year.  In  short,  the  system 
of  "  assistance  "  conforms  to  the  faculty  theory. 

In  Chinese  economic  history,  however,  outside  of  the  tax 
systems  of  the  Three  Dynasties  advocated  by  the  Confu- 
cians, all  the  tax  systems  of  different  dynasties  prescribe  a 
fixed  amount — an  amount  not  only  of  the  average  of  several 
years,  but  also  of  a  custom  of  several  centuries.  This  is 
opposite  to  the  principles  of  Confucius. 

II.    SOURCES    OF    TAXATION 

The  sources  of  taxation  are  not  in  the  government  itself, 
but  in  the  people.  Therefore  to  enrich  the  people  is  the  way 
to  increase  taxation.  When  Duke  Ai  of  Lu  asked  Confu- 
cius about  government,  he  replied :  "  There  is  a  policy  which 
makes  the  people  rich.  .  .  ."  ''Why?"  asked  the  Duke. 
"  By  lightening  the  taxes,"  replied  Confucius,  "  the  people 
will  be  rich.  .  .  ."  "  If  so,"  said  the  Duke,  "  I  myself  shall 
be  poor."  Confucius  said:  ''It  is  said  in  the  Canon  of 
Poetry,  '  The  happy  and  courteous  sovereign  is  the  parent 

*  Classics,  vol.  ii,  p.  241-2. 


TAXATION  IN  GENERAL  625 

of  the  people.'  I  have  not  seen  that  the  parents  are  poor 
when  their  sons  are  rich."  ^  This  conversation  indicates  the 
relation  between  the  government  and  the  people,  and  shows 
that  the  social  income  is  the  real  criterion  of  the  burden  of 
taxation. 

One  day  Duke  Ai  inquired  of  Yu  Jo,  saying:  "  The  year 
is  one  of  scarcity,  and  the  returns  for  expenditures  are  not 
sufficient;  what  is  to  be  done?"  ''  Why  do  you  not  simply 
tithe  the  people?"  replied  Yu  Jo.  **  With  two-tenths."  said 
the  Duke,  "  I  find  them  not  enough ;  how  could  I  do  with 
that  system  of  one-tenth?"  Yu  Jo  answered:  *' If  the 
people  are  rich,  who  will  make  the  ruler  alone  in  want?  If 
the  people  are  in  want,  who  will  make  the  ruler  alone 
rich  ?"  ■  Indeed,  to  enrich  the  people  is  the  only  way  of  en- 
riching the  government,  and  to  lighten  taxation  is  the 
most  important  policy  of  giving  the  people  the  means  of 
developing  their  economic  interest. 

The  principle  of  Confucius  is  like  that  of  Hales,  who  says  : 
**A  king  cannot  have  treasure  when  his  subjects  have  none." 
Hsun  Tzu  says :  *'  When  the  people  are  poor,  the  govern- 
ment is  also  poor;  when  they  are  rich,  it  is  also  rich."  ^ 
Therefore,  the  social  income  is  the  source,  and  taxation  is 
only  its  flow. 

The  condition  of  a  state  can  be  judged  by  the  policy  of 
taxation.     Hsun  Tzu  says  : 

One  who  can  become  an  emperor,  is  to  enrich  the  people  in 
general.  One  who  can  become  a  leader  of  the  feudal  princes, 
is  to  enrich  the  soldiers.  The  state  which  scarcely  stands  in- 
tact, is  to  enrich  the  great  officials.  The  state  which  i".  ready 
to  ruin,  is  to  enrich  the  baskets  and  to  fill  the  treasuries.    When 

• 

'  Park  of  Narratives,  bk.  vii. 
'  Classics,  vol.  i.  p.  255. 
»  13k.  X. 


^26       THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

the  baskets  have  been  enriched  and  the  treasuries  have  been 
filled,  the  people  are  impoverished ;  it  is  so-called  ''  overflowing 
above  but  running  away  at  the  bottom."  Such  a  state  can- 
not defend  itself  at  home,  nor  engage  in  war  abroad.  It  is 
simply  waiting  for  its  immediate  fall.  ^ 

In  1345  A.  K.  (794  A.  D.),  Lu  Chih  gave  a  good  theory 
of  taxation.     He  said  : 

To  create  offices  and  to  establish  government  is  for  the 
end  of  nourishing  the  people.  To  tax  the  people  and  to  get 
revenue  is  for  the  means  of  supporting  the  government.  A 
wise  ruler  does  not  increase  the  means  at  the  expense  of  the 
end.  Therefore,  he  must  first  pay  his  attention  to  the  busi- 
ness of  the  people,  and  give  them  a  full  chance  for  their  eco- 
nomic activities.  He  must  first  enrich  every  family,  and  then 
collect  the  surplus  of  their  income.^ 

This  statement  points  out  why  government  should  be 
established,  why  the  people  should  be  taxed,  and  how  the 
tax  can  be  collected.  In  fact,  the  existence  of  the  govern- 
ment is  for  the  benefit  of  the  people  at  large,  the  justifica- 
tion of  taxation  is  for  the  defraying  of  governmental  ex- 
penses, and  the  paying  of  taxes  is  dependent  on  the  ability 
of  the  people. 

III.    DOCTRINE    OF    THE    LIGHT    TAX 

Since  the  people  are  the  tax-bearers,  and  the  amount  of 
taxation  is  dependent  on  the  social  income,  Confucius  ad- 
vocates the  doctrine  of  the  light  tax.  We  must  remember 
that  feudalism  existed  during  his  time.  The  princes  taxed 
the  people  at  their  will,  and  did  not  concern  themselves 
much   about  the   welfare   of   the   people.      Therefore,    the 


»  Bk.  ix. 

^  General  Political  History,  ch.  ccxxxiv. 


TAXATION  IN  GENERAL  627 

lighter  the  tax  system  was,  the  better.  Confucius  said  to 
his  prince,  Duke  Ai :  *'  Employing  them  only  at  the  proper 
times,  and  making  the  imposts  light,  this  is  the  way  to  en- 
courage the  people.'*^  Mencius  says:  *' By  teaching  tlie 
people  to  cultivate  their  land  well,  and  making  the  taxes 
light,  the  i>eople  may  be  made  rich."  "  Indeed,  the  light 
tax  is  an  important  economic  principle  of  Confucius, 
because  it  retains  the  wealth  in  the  hands  of  people,  and 
helps  the  development  of  their  economic  interest. 

During  the  feudal  age,  the  monarch  was  the  chief  con- 
sumer of  the  public  revenue.  To  increase  public  revenue 
was  to  do  harm,  rather  than  good,  to  the  people.  Hence. 
Confucius  strongly  conrlemned  the  public  financier. 

Jan  Yu  distinguished  himself  by  his  economic  statesman- 
ship. He  said  to  Confucius :  *'  Suppose  a  state  of  sixty  or 
seventy  miles  square,  or  one  of  fifty  or  sixty  miles  square, 
were  governed  by  me  for  three  years.  I  could  make  the 
people  rich."  ^  Confucius  also  recognized  his  statesman- 
ship.* But  when  Jan  ^'u  became  the  chief  officer  of  the 
head  of  the  Chi  family,  who  was  richer  than  the  Duke  of 
Chou  had  been,  and  collected  his  imposts  for  him,  Confu- 
cius reproved  Jan  Vu:  "  He  is  no  disciple  of  mine.  My 
little  children,  beat  the  drum  and  assail  him."  '  Mencius 
cj^mments :  ''Looking  at  the  subject  from  this  case,  we 
perceive  that  when  a  ruler  is  not  practising  benevolent  gov- 
ernment, all  his  officials  who  enrich  him  should  be  punished 
by  the  law  of  Confucius."  '^  Jan  \\\  was  a  great  disciple 
of  Confucius,  so  his  collecting  of  imposts  would  not  be  in 
an  uniust  way.  He  increased  the  revenues  through  his  ad- 
ministrative  ability.       But   this    was   bad    enough.   becau.«^e 

*  Classics,  vol.  i.  p.  410.  -  Ibid.,  vol.  ii.  p.  462. 
'/did.,  vol.  i.  p.  247.                               *  Ibid.,  p.   175. 

*  Ibid.,  pp.  242-3.  •  Ibid.,  vol.  ii.  p.  305. 


^2S       THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

Confucius  did  not  like  to  enrich  a  ruler  who  was  not  an 
ideal  one. 

Mencius  gives  a  strong  condemnation  of  public  finan- 
ciers as  follows : 

Those  who  nowadays  serve  their  rulers  say,  "  We  can  for 
our  rulers  enlarge  and  develop  the  cultivated  land,  and  fill 
their  treasuries  and  arsenals."  Such  persons  are  nowadays 
called  ''  good  ministers,"  but  anciently  they  were  called  "  rob- 
bers of  the  people."  If  a  ruler  does  not  follow  the  right 
way,  nor  has  his  mind  bent  on  benevolence,  to  seek  to  enrich 
him  is  to  enrich  a  Chieh.^ 

Under  the  influence  of  Confucius,  the  public  financiers  of 
different  dynasties  have  been  unfavorably  criticized.  The 
term  "  collecting  imposts  "  has  become  an  odious  term.  On 
the  whole,  such  a  spirit  is  good,  because  the  Chinese  govern- 
ment is  monarchical  in  form,  and  the  court  is  still  the  chief 
consumer  of  public  revenue.  When  the  emperor  is  good,  a 
small  amount  of  taxes  is  sufficient,  and  the  nation  is  also 
prosperous.  When  the  emperor  is  bad,  especially  extrava- 
gant, even  a  large  revenue  cannot  suffice,  and  the  nation  is 
impoverished.  Therefore,  the  teachings  of  Confucius  help 
the  people  a  great  deal  in  their  economic  life. 

However,  the  Chinese  have  carried  this  point  a  little  too 
far,  and  it  has  retarded  the  science  of  finance.  Generally, 
when  the  government  needs  more  money,  the  times  are  not 
good,  especially  if  a  war  is  in  progress.  Hence,  the  people 
have  an  impression  that  the  increase  of  taxation  is  a  bad 
thing.  But  as  soon  as  there  is  need  of  money,  we  cannot 
avoid  enlarging  the  revenue,  and  the  tax  system,  together 
with  all  details,  is  very  important  for  the  national  life.  If 
we  pay  attention  to  it,  we  may  get  a  better  result;  if  we 

1  Classics,  vol.  ii,  pp.  440-441.     For  Chieh  cf.  supra,  p.  607. 


TAXATION  IN  GENERAL  629 

ignore  it,  we  must  perish  as  a  nation.  Since  the  Chinese 
scholars  are  afraid  of  talking  about  money-making,  even  for 
public  use,  China  is  hampered  in  the  natural  development 
of  her  financial  system.  Even  when  good  systems  have 
been  originated,  they  have  been  abolished  or  suspended,  or 
at  least  unjustly  criticized. 

The  fundamental  obstacle  to  the  development  of  the  finan- 
cial system  is  the  form  of  government.  So  long  as  the 
government  is  monarchical  in  form,  and  the  monarch  has 
the  greatest  power  over  the  public  treasuries,  the  Chinese 
never  appreciate  the  increase  of  revenue.  The  financial 
system  will  not  be  developed  to  full  extent  until  the  estab- 
lishment of  a  true  constitutional  government  in  the  future. 

IV.    GENERAL    PRINCIPLES    OF    TAXATION 

Mencius  gives  a  comprehensive  statement  covering  all  the 
principles  of  taxation.  He  says:  '*A  worthy  ruler  will  be 
gravely  complaisant  and  frugal,  showing  a  respectful  polite- 
ness to  his  ministers,  and  taking  from  the  people  only  in 
accordance  with  certain  regulations."  '  This  statement  is 
quite  general — in  short,  there  must  be  certain  regulations  of 
taxation  in  order  to  check  the  arbitrary  power  of  the  gov- 
ernment;  and  all  the  regulations  must  be  harmonious  with 
the  principles,  because  the  regulations  are  based  u])nn  the 
principles. 

The  first  principle  of  taxation  is  equality — a  tax  nuist  be 
equally  imposed  on  ever^'one  and  in  whatever  place.  It  is 
illustrated  in  a  poem  of  the  Canon  of  Poetry.  This  poem 
was  written  by  a  great  official  of  the  imperial  state,  who 
came  from  T'an,  one  of  the  smaller  slates  of  the  Mast,  show- 
ing the  inequality  of  taxation  between  the  East  and  the 
West,  the  imperial  state.     The  most  important  sentence  of 

'  Classics,  vol.  ii,  p.  240. 


630       THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

this  poem  is:  "  The  way  of  Chou  is  like  a  whetstone."  It 
means  that  the  tax  system  of  the  Chou  dynasty  was  as  equal 
as  a  whetstone,  contradicting  the  present  condition  of  the 
author.  Then  he  describes  the  misery  of  the  East  with  the 
following  stanza: 

In  the  states  of  the  East,  large  and  small, 

The  looms  are  empty. 

Thin  shoes  of  dolichos  fibre 

Are  made  for  walking  on  the  hoar-frost. 

Slight  and  elegant  gentlemen 

Walk  alcng  the  road  of  Chou. 

Their  going  and  coming 

Makes  my  heart  ache. 

Having  devoted  another  stanza  to  describing  the  restless 
hardship  of  the  East,  he  contrasts  the  economic  condition 
of  the  East  and  that  of  the  West  as  follows : 

The  sons  of  the  East 

Are  charged  only  with  heavy  burdens  without  encouragement. 

The  sons  of  the  West 

Shine  in  splendid  dresses. 

It  is  evident  that  the  East  is  poor  and  the  West  rich,  and 
that  unequal  taxation  is  unjust.^  In  short,  a  system  of  tax- 
ation must  be  as  equal  as  a  whetstone. 

In  the  Canon  of  Poetry  there  is  a  passage:  ''  The  pitcher 
has  been  exhausted;  it  is  the  shame  of  the  jar."  ^  Cheng 
Hsiian  explains  this  passage  by  the  tax  system.  K'ung 
Ying-ta  explains  Cheng's  theory  as  follows : 

It  means  that  this  is  the  shame  of  the  drinker  who  takes  charge 
of  the  jar.  The  large  jar  is  like  the  rich  and  large  family;  the 
small  pitcher,  the  poor  and  small  family.  If  both  the  jar  and 
the  pitcher  are  arranged  for  drinking,  one  should  drink  more 

^  Classics,  vol.  iv,  pt.  ii,  pp.  353-4.  ^  Ibid.,  p.  351. 


TAXATION  IN  GENERAL  63 1 

from  the  jar  and  less  from  the  pitcher  until  both  are  ex- 
hausted ;  this  is  the  pinciple  of  equality.  It  is  just  the  same 
principle  as  that  of  taxation :  when  both  the  rich  and  the  poor 
are  taxed,  in  money  as  well  as  in  labor,  one  should  tax  the 
rich  more  and  the  poor  less,  up  to  the  point  that  both  can  bear 
the  burden :  this  is  also  the  principle  of  equality. 

Although  such  explanation  may  not  be  the  original  mean- 
ing of  the  text,  it  is  the  theory  of  taxation  of  the  Confu- 
cians. According  to  Cheng  and  K'ung,  a  tax  should  be 
progressive  rather  than  proportional,  because  it  should  put 
the  rich  and  the  poor  on  the  same  footing  in  accordance 
with  their  ability. 

The  second  principle  of  taxation  is  universality — a  tax 
must  reach  everybody.  This  principle  is  illustrated  by 
a  poem  of  the  Canon  of  Poetry.  As  we  shall  see  that 
personal  service  is  one  kind  of  taxes,  this  poem  speaks 
of  this  duty.  It  was  written  by  an  officer  wdio  com- 
plains of  the  arduous  and  continual  duties  unequally  im- 
posed upon  him,  and  keeping  him  away  from  his  duty  to 
his  parents,  while  others  are  left  to  enjoy  their  ease.  We 
may  select  from  it  three  stanzas,  as  follows : 

Under  the  wide  heaven. 

All  is  the  king's  land. 

Within  the  sea-boundaries  of  the  land, 

All  are  the  king's  citizens. 

His  great  officials  are  unfair, 

Making  me  serve  as  if  I  were  the  only  one  having  ability. 

My  four  horses  never  halt : 

The  king's  business  allows  no  rest. 

They  praise  me  as  T  am  still  not  old; 

They  think  very  few  are  as  vigorous  as  I. 

While  the  backbone  retains  its  strength, 

I  imi>t  plan  :v\i\  labor  ':\  all  ;  :;rts  of  the  kingdom. 


632       THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

Some  enjoy  their  ease  and  rest, 

And  others  are  worn  out  in  the  service  of  the  state. 

Some  rest  and  loll  upon  their  couch-^s, 

And  others  never  cease  to  march  forward.^ 

Although  this  poem  speaks  only  of  personal  duties,  it  points 
out  clearly  the  principle  of  universality.  Indeed,  any 
kind  of  taxes  must  be  based  on  universality,  preventing  any- 
one's escaping  from  supporting  the  state. 

Although  universality  is  the  general  principle  of  taxation, 
there  are  some  exceptions.  Take  for  example  the  land  tax. 
Mencius  says :  "  From  the  highest  officers  to  the  lowest, 
each  one  must  have  his  '  holy  field,'  consisting  of  fifty 
acres."  ^  The  ''Royal  Regulations"  says:  ''No  tax  was 
levied  from  the  *  holy  field.'  "  "  The  holy  field  was  assigned 
to  the  families  of  the  officials  for  the  sacrifices  to  their  an- 
cestors. It  served  as  a  social  distinction  for  worthy  men, 
so  it  was  exempted  from  taxation. 

In  the  social  system  of  Confucius  there  are  two  classes, 
the  governing  class  and  the  governed.  The  governing  class 
being  the  salaried  class,  pays  no  land  tax.  Their  salaries 
come  from  the  produce  of  the  land,  which  is  paid  by  the 
farmers  as  tax.  The  governed  class  is  the  only  class  of  tax- 
payers who  receive  public  land  from  the  government 
and  pay  one-tenth  of  its  produce  to  the  government  as  tax. 
Therefore,  the  members  of  the  former  class  are  called 
superior  men;  those  of  the  latter,  counti*y-men.  Men- 
cius says :  "  If  there  were  no  superior  men,  there  would  be 
nobody  qualified  to  rule  the  country-men.  If  there  were  no 
country-men,  there  would  be  nobody  having  ability  to  sup- 
port the  superior  men."  * 

*  Classics,  vol.  iv,  pt.  ii,  pp.  ^^60-2. 
'  Ibid.,  vol.  ii,  p.  244. 

"  Li  Ki,  bk.  iii,  p.  227. 

*  Classics,  vol.  ii,  p.  244 ;  cf.  also  supra,  pp.  606-7. 


TAXATION  IN  GENERAL  633 

In  fact,  according  to  the  Confucians,  the  land  tax  is  prac- 
tically the  only  tax.  Because  the  officials  do  not  cultivate 
the  land,  they  are  not  required  to  pay  land  tax.  Although 
they  receive  the  land  tax  as  their  salary,  such  an  income  is 
the  compensation  paid  by  the  state  for  their  service,  so  that 
it  is  not  subject  to  taxation.  Besides  the  officials,  even  the 
common  people  employed  in  the  government  offices  do 
not  pay  the  land  tax,  because  they  cultivate  no  land.  This 
shows  that  the  officials  really  do  not  get  any  special  privi- 
lege, and  that  the  exemption  of  fifty  acres  of  the  "  holy 
field  "  of  each  official  does  not  affect  the  principle  of  uni- 
versality. 

Take  personal  service  for  another  example.  While 
common  people  are  required  to  serve  the  state  physically, 
officials  serving  the  state  mentally  are  exempted  from 
physical  service.  However,  all  officials,  whether  high 
or  low,  are  responsible  for  military  service  in  time  of 
war.  Therefore,  the  partial  exemption  of  officials  from 
physical  labor,  such  as  the  different  kinds  of  public  works, 
does  not  affect  the  principle  of  universality. 

Moreover,  under  Confucius'  system,  these  two  classes  are 
interchangeable.  Tt  is  not  a  system  of  caste,  but  a  division 
of  labor.  It  simply  gives  just  reward  to  the  higher  class, 
and  inspires  the  ambition  of  the  lower  class,  because  anyone 
can  get  the  same  exemption  as  soon  as  he  raises  himself 
to  the  higher  class.  To-day,  there  is  no  distribution  of 
public  land  nor  any  personal  service:  everyone  is  on  the 
same  footing.  Therefore,  the  tax  system  is  apparently  quite 
universal. 

V.    CLASSIFICATION    OF    TAXES 

As  to  the  classification  of  taxes,  there  is  a  complete  state- 
ment of  the  tax  system  given  in  FAdcr  Tai's  Record.^ 
Confucius  says: 

'  Lk.  xxxix ;  cf.  Li  Ki,  bk.  iii,  p.  227. 


634 


THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 


Formerly,  the  wise  kings  inspected  the  travelers  at  the  custom 
houses,  but  did  not  levy  dut}^  upon  commodities.  They  es- 
tablished public  warehouses  in  the  market-places,  but  did 
not  tax  commodities.  They  taxed  one-tenth  of  the  produce  of 
the  land.  They  employed  the  labor  of  the  people  not  more 
than  three  days  in  one  year.  The  entering  into  the  mountains 
and  the  meres  by  the  people  was  limited  to  the  proper  times 
by  regulations,  but  not  by  tax.  All  these  six  things  [custom- 
houses, market-places,  land,  personal  labor,  mountains  and 
meres],  may  be  regarded  as  the  ways  of  getting  revenue.  But 
the  wise  kings  taxed  only  two  things  [land  and  personal  labor], 
in  a  moderate  way,  leaving  the  other  four  untaxed. 

From  this  statement  of  Confucius  we  know  that  there 
were  six  kinds  of  taxes  in  his  time.  But  according  to  his 
idea,  there  should  be  only  two  kinds  of  moderate  taxes. ^ 
His  fundamental  point  is  to  abolish  all  kinds  of  indirect 
taxes. 

There  is  another  passage  given  by  Confucius  describing 
the  tax  system  of  the  ancient  kings,  which  is  arranged 
according  to  the  ability  to  pay.     He  says : 

The  ancient  kings,  having  regulated  the  land,  required 
labor  from  the  people  to  cultivate  the  public  fields  as  a  tax 
on  their  private  fields  in  accordance  with  their  strength ;  and 
the  location  of  their  residence  from  the  pubHc  fields  was  also 
made  equal  in  distance.  They  taxed  the  ground  of  their  resi- 
dence according  to  their  income,  but  the  general  condition  of 
each  family  was  also  taken  into  consideration.  They  made  the 
people  serve  in  the  public  works  according  to  the  number  of 
men,  but  the  old  and  the  young  were  exempted.  Moreover, 
wiflowers,  widows,  orphans  and  sick  persons,  were  exempted 
from  these  three  taxes,  except  in  time  of  war.  Even  in  time 
of  war,  the  total  amount  of  annual  tax  paid  by  nine  hundred 
acres  of  land  was  not  over  six  hundred  and  forty  bushels  of 

1  The  ground  tax  of  the  house  is  included  in  the  term  land  tax. 


TAXATION  IN  GENERAL  635 

the  whole  plant  of  the  grain,  two  hundred  and  forty  pecks  of 
straw,  and  sixteen  pecks  of  rice.^ 

According  to  this  statement  of  Confucius,  there  are  three 
kinds  of  taxes.  One  is  the  land  tax;  another,  the  ground 
tax ;  and  the  third,  a  tax  in  the  form  of  personal  service. 
The  ground  tax  needs  a  little  explanation.  As  silk  is  made 
by  women  from  the  mulberry  trees  grown  around  the 
house  which  is  on  public  land  and  under  public  con- 
trol, the  ground  of  the  house  is  required  to  pay  hempen- 
cloth  or  silk.  This  is  a  contribution  of  the  women  just  as 
the  land  tax  paid  in  grain  is  a  contribution  of  the  men. 
This  is  also  a  tax  on  income  derived  from  the  ground. 
Therefore,  the  general  condition  of  the  family,  rich  or  not. 
should  be  considered.  Under  such  a  consideration,  it  is  not 
a  tax  on  gross  income,  but  on  net  income,  because,  when 
the  poor  family  has  no  net  income  left,  it  is  exempted.  This 
tax  has  become  the  family  tax  in  later  times,  known  as  the 
''door  tax,"  a  tax  on  property  and  income. 

These  three  kinds  of  taxes  should  be  required  at  different 
times.  The  ground  tax  paid  in  cloth  and  silk  is  required  in 
summer;  the  land  tax  paid  in  grain,  in  autumn;  and  the 
personal-service  tax,  in  winter.     Mencius  says: 

There  are  exactions  of  hempen-cloth  and  silk,  of  grain,  and  of 
personal  service.  The  superior  man  in  the  government  re- 
quiries  but  one  of  these  at  once,  deferring  to  collect  the  other 
two.  If  he  require  two  of  them  at  once,  then  the  people  die 
of  hunger.  If  he  require  the  three  at  once,  fathers  and  sons 
are  separated. - 

During   the   Chou   dynasty,   when   the  common   laborer 

*  Narratives  of  Nations,  bk.  v. 
'  Classics,  vol.  ii.  p.  491. 


636       THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

under  his  employment  could  not  render  the  public  personal 
service,  he  was  required  to  pay  money  as  the  poll  tax(/w  pu) ; 
and,  when  nothing  was  planted  around  the  house,  money 
was  required  as  the  ground  tax  (li  pit).  These  were  justi- 
fiable. But  in  Mencius'  time  the  princes  required  the  poll 
tax  from  the  people  even  though  they  had  served  the  public 
labor,  and  the  ground  tax  from  the  houses  even  though  they 
had  already  contributed  silk  and  cloth.  It  meant  that  the 
person  and  the  ground  were  taxed  twice.  Therefore,  Men- 
cius said :  "  If,  in  the  residential  districts,  a  ruler  did  not 
impose  the  poll  tax  and  the  ground  tax  paid  in  money,  then 
the  people  of  the  world  would  be  pleased,  and  wish  to  be- 
come his  citizens."  ^ 

In  China  there  is  no  legal  separation  of  local  from 
national  revenue.  Every  tax  is  national.  It  is  simply 
collected  by  local  officers  who  are  appointed  by  the 
central  government.  The  local  officers  have  no  legal 
power  to  impose  or  expend  any  tax  at  all,  except  one  ap- 
proved by  the  emperor  through  the  recommendation  of  the 
minister  of  finance. 

However,  as  a  matter  of  fact,  there  has  always  been  a 
division  of  local  and  national  revenue.  We  shall  see 
that  such  a  division  began  at  the  time  of  Yii.^  Dur- 
ing the  reign  of  Tang  Hsien  Tsung  (1357-1371,  or  806-820 
A.  D.),  the  revenue  of  the  whole  empire  began  to  be  divided 
into  three  parts — one  for  the  central  government,  one  for 
the  provincial  government,  and  one  for  the  prefecture.  The 
Sung  dynasty  did  the  same  way.  Even  at  the  present  day, 
there  are  two  parts  of  revenue — one  is  reserved  for  the  de- 
fraying of  local  expenditures,  and  the  other  sent  to  the  cen- 
tral government.     Therefore,  we  may  say  that  China  has 

^  Cf.  Classics,  vol.  ii,  p.  200.     Since  the  ground  tax  is  only  a  sub- 
ordinate of  the  land  tax,  we  shall  not  discuss  it  any  farther. 
2  Cf.  infra,  pp.  639-640. 


TAXATION  /A'  GENERAL  637 

the  principle  of  separating  local  from  national  taxes. 
But  it  is  a  separation  only  of  uses,  not  of  sources.  This 
has  caused  great  trouble  in  the  financial  system.  Al- 
though the  Chinese  government  has  been  a  centralized  gov- 
ernment since  the  Hsia  dynasty,  its  practices  become  a  de- 
centralized government  because  the  sources  of  taxation  are 
not  separated.  However,  it  is  pronu"sed  that  they  shall  be 
separated  during  the  present  year. 

Since  China  has  no  separation  of  the  sources  of  taxation,' 
we  shall  classify  the  taxes  not  into  national  and  local  taxes, 
but  into  direct  and  indirect  taxes. 

'  In  reality,  China  has  a  separate  category  of  local  taxes.  Besides 
the  local  officers  illegally  collecting  imposts,  the  people  themselves 
assess  and  collect  the  true  taxes  for  the  local  welfare.  In  the  country 
towns,  they  arc  controlled  by  the  gentry  and  the  elders;  in  the  cities, 
by  the  merchants.  They  are  justly  imposed,  and  their  administration  is 
efficient  and  democratic.  Hence  the  people  do  not  even  know  that  they 
are  taxes,  and  they  are  not  called  taxes. 


CHAPTER  XXXIV 

Direct  Taxes 

i.  land  tax 

I.   The  Oldest  System  of  Land  Tax  Described  by  Confucius 

Although  the  land  tax  began  with  Huang  Ti,  there  is 
no  older  system  than  that  of  the  ''  Tribute  of  Yii,"  and 
this  system  is  authorized  by  Confucius.  According  to  the 
''  Tribute  of  Yii,"  the  land  of  the  nine  provinces  is  classified 
into  nine  grades;  and  the  amount  of  tax  to  be  collected 
from  these  nine  provinces,  into  nine  degrees.  These  grades 
and  degrees  are  intended  to  afford  merely  a  rough  method 
of  classification  and  do  not  correspond  in  individual  cases. 
Thus,  within  any  province,  all  the  land  cannot  very  well  be 
of  the  same  grade,  and  the  tax,  therefore,  cannot  be  of  the 
same  degree.  The  grades  of  land  and  the  degrees  of  tax 
are  merely  averages.  Moreover,  taking  a  province  as  a 
whole,  the  degree  of  tax  does  not  necessarily  correspond 
with  the  grade  of  land.  For,  if  the  cultivation  of  the  people 
is  good,  the  one-tenth  tax  on  the  lower  grade  of  land  will 
afford  more  revenue;  when  it  is  poor,  the  one-tenth  tax  on 
the  higher  grade  will  afford  less.  Although  the  amount  of 
tax  of  the  nine  provinces  varies  in  nine  degrees,  the  rate  of 
tax,  it  must  be  clearly  understood,  is  uniform  throughout 
the  whole  empire,  that  is,  one-tenth.  It  is  because  the  terri- 
tory of  each  province  and  its  population  differ  from  those 
of  the  other  provinces  that  its  contribution  to  the  total  tax 
fund  must  be  different. 
638 


DIRECT  TAXES  639 

There  is  a  significant  principle  in  the  *'  Tribute  of 
Yii,"  that  is,  the  distinction  between  the  central  and  the  local 
taxes.  Both  the  central  and  the  local  governments  tax  the 
land  at  the  same  rate,  yet  there  is  a  distinction. 

In  the  imperial  province,  Ki  Chow,  the  tax  is  paid  in 
kind.  Five  hundred  miles  constitute  the  "  imperial  do- 
main," that  is,  five  hundred  miles  from  the  capital  as  a  center 
to  the  north,  south,  east  and  west;  or,  in  other  words,  a 
square  of  1,000  miles,  making  the  imperial  domain  equal  to 
an  area  of  1,000,000  square  miles.  In  fact,  the  imperial 
domain  is  divided  up  on  each  side  of  the  capital  into  five 
zones,  each  having  the  same  width,  namely,  one  hundred 
miles.  From  the  first  hundred  miles,  the  people  bring,  as 
tax,  the  whole  plant  of  the  grain ;  from  the  second,  they 
bring  the  ears;  from  the  third,  they  bring  only  the  straw, 
but  attend  to  the  transportation  of  the  grain  which  comes 
from  the  fourth  and  the  fifth  hundred  miles;  from  the 
fourth,  they  give  the  grain  in  the  husk;  and  from  the  fifth, 
the  grain  cleaned. 

This  is,  of  course,  a  primitive  system  of  taxation,  but  its 
principle  is  admirable.  Since  the  first  zone  surrounding  the 
capital  is  the  nearest,  they  bring  the  whole  plant.  The  sec- 
ond is  a  little  farther  away,  so  they  bring  only  the  ears. 
The  third  is  still  farther,  so  they  bring  only  the  straw  with- 
out grain;  this  is  least  valuable  of  all,  but  they  give  also 
personal  service.  The  fourth  is  much  farther,  so  they  give 
the  grain  in  husk;  and  the  fifth  is  the  farthest,  so  they  give 
only  the  grain  cleaned.  From  the  first  zone  to  the  third, 
they  all  bring  the  produce  to  the  capital  themselves;  but  the 
fourth  and  fifth  do  not  bring  the  grain  to  the  capital,  but 
convey  it  only  to  the  third  zone.  This  is  the  principle  of 
justice.  The  contributions  of  different  zones  are  arranged 
with  reference  to  their  distance  from  the  capital  and  the  re- 
sulting labor  of  transportation.     The  plan  takes  both  the 


640       THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

amount  of  taxation  and  the  cost  of  transportation  into  con- 
sideration,  and  aims  to  make  all  the  people  bear  the  same 
burden. 

This  system  of  taxation  in  the  imperial  domain  is  the 
standard  for  the  whole  empire.  The  princes  of  different 
feudal  states  tax  the  land  in  the  same  way,  so  that  the  *'  Trib- 
ute of  Yii  "  does  not  give  the  details  in  the  states.  But 
what  marks  the  difference  between  the  central  and  the  local 
taxes  is  that,  the  local  tax  paid  to  the  central  g-overnment 
by  the  princes  is  not  in  kind,  but  in  value. 

The  princes  tax  the  people  at  the  rate  of  one-tenth.  Be- 
sides retaining  a  part  of  it  for  the  expenditure  of  their  states, 
they  pay  a  certain  part  of  the  total  amount  of  land  tax  to 
the  imperial  government.  The  great  states  pay  one-half; 
the  middle  class  of  states,  one-third;  and  the  small  states, 
one-fourth.  The  princes  take  the  sum  of  the  fixed  amount 
to  buy  the  principal  articles  of  their  states,  and  send  them 
to  the  imperial  capital.  Such  payment,  known  as  "  tribute," 
is  a  part  of  the  local  tax  due  to  the  central  government. 
While  the  imperial  province  pays  its  tax  in  kind  directly  to 
the  government  without  sending  tribute,  all  the  other  eight 
provinces  pay  no  other  tax,  except  the  tribute,  which  is 
itself  a  tax. 

All  the  tribute  goes  to  the  government  factories.  How- 
ever, some  of  the  tribute  is  put  in  baskets  of  bamboo,  which 
go  to  the  female  factory.  Hence  there  is  a  distinction  be- 
tween the  tribute  in  general  and  the  ''  baskets  "  in  particular. 
For  the  convenience  of  our  readers,  we  shall  make  a  table 
showing  the  different  articles  paid  as  tribute  or  baskets  by 
the  provinces  and  the  barbarous  tribes.  From  the  follow- 
ing table  we  can  imagine  the  economic  development  during 
the  Yii  dynasty  (1704- 165 5  B.  K.  or  2255-2206  B.  C). 


DIRECT  TAXES 


641 


LIST   OF    COMMODITIES    SENT   AS    TRIBUTE 


Provinces 


Ki  Chow. 


Yen  Chow. 


Ts'iag  Chow. 


Sii  Chow. 


YaDg  Chow. 


Taxes 


Contributions 
not  Taxes 


Tribute 


Varnish,  silk. 


Baskets 


Tribute  from  the 
Barbarians 


Woven  orna- 
mental fabncs. 


Dresses  of  skins 
from  the  barbarians 
of  the  islands. 


Salt,   fine   grass-cloth,  various   pro-  1      Silk    from   the 
ductions  of  the  sea,  silk,  hemo,  lead,    mountam    mulber-  1 
pine-irces,   and   strange    stones,  irom  1  ries. 
the  valleys  ot  the  Tai.  | 


Earth  of  five  diflerent  colors,  varic-  :      Deep  arure  silks, 

gated  feathers  ol  pheasants  from  the  checkered  silk  with 
valleys  ol  the  Yu,  soluary  dryandra  a  black  warp  and 
irom  the  south  of  Mount  Vi,  soundmg  whrewoof.and  fab- 
stones  that  seem  to  float  near  the  banks  ric  white  and  iin- 
of  the  Sie.  ornamented. 


Oyster  pearls  and 

fish  from  the  bar- 
barians about  the 
Hwai. 


Gold,  silver,  copper,  yao  and   &un  |    Woven  variegated       Ciarmcnts  of  grass 

from  the  barbarians 
of  the  islands. 

oranges  and  pummelues  rendered  when 

required. 


King  Chow. 


YQ  Chow. 


Liang  Chow. 


Yung  Chow. 


Feathers,  hair,  ivory,  hides,  gold.  Deep  azure  and 
silver,  copper,  cA'un  tree,  wood  lor  purple  silken  fab- 
bows,  cedars,  cypresses,  grindstones,  rics,  and  white 
whetstones,  stones  tor  arrow-hcids,  strings  of  pearls 
cinnabar,  three-ribbed  rush.  Lh'un  that  are  uot  quite 
and  /»  bamboos,  hu  tree,  rendered  round, 
when  required.  Great  tortoise  pre- 
sented when  caught. 


Varnish,  hemp,  finer  hempen  cloth.        Fine   silken   fab- 
coarser  hempen  cloth.     Stones  for  pol-    rics,  and  fine  floss- 
ishing  sounding-stones  rendered  when    silk, 
required.  I 


Mruical  gem-stonet,  iron,  silver, 
steel,  stones  tor  arrow-heads,  sounding- 
stones. 


Ch't'u  and  tin  gem-stones,  and  the 
langkan  precious  stones. 


Skins    of  bears, 

great  bears,  foxes, 
and  i.ickals,  and 
articles  woven  with 
their  hair,  from  the 
barbarians  of  Hsi- 
ch'ing. 


i      Hair-cloth    and 

skins  irom  ihe  west- 
I  em  barbarians. 


642       THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

From  this  table  we  learn  that  there  are  two  knids  of 
people :  the  civilized  and  the  barbarian.  The  nine 
provinces  are  divided  into  five  domains,  namely,  (i)  the 
imperial  domain,  (2)  the  domain  of  the  nobles,  (3)  the 
peace-securing  domain,  (4)  the  domain  of  restraint,  and 
(5)  the  wild  domain.  Each  domain  consists  of  one  thou- 
sand miles  square,  and  the  five  domains  amount  to  five  thou- 
sand miles  square.  The  first  three  domains  are  called 
Middle  Kingdom,  and  the  last  two,  the  barbarians.  Beyond 
the  five  domains,  all  the  territories  still  belong  to  the  nine 
provinces.  Those  regions  without  the  nine  provinces  are 
occupied  by  the  barbarians  and  called  "  Four  Seas."  These 
are  the  political  divisions  of  ancient  China,  and  they  form 
the  basis  of  taxation. 

Within  the  Middle  Kingdom  the  land  is  divided  into  tsing 
Hen,  and  the  people  pay  a  regular  tax  at  the  rate  of  one- 
tenth  of  their  produce.  All  the  fields  are  classified  with  ref- 
erence to  their  soils  into  three  classes,  which  are  subdivided 
into  nine  classes.  The  classification  of  the  soils  forms  the 
basis  of  the  degree  of  tax.  In  fact,  the  amount  of  tax  must 
be  in  accordance  with  the  soils ;  this  is  the  principle  of 
faculty,  or  ability  to  pay. 

The  lands  occupied  by  barbarians,  whether  within  or 
without  the  nine  provinces,  are  not  divided  into  tsing  tien, 
and  the  barbarians  are  not  required  to  pay  regular  taxes. 
Those  who  live  in  the  nine  provinces,  are  the  subjects  of  the 
empire,  and  are  obliged  to  send  tribute.  Those  who  live  in 
the  "  Four  Seas,"  are  not  imperial  subjects,  and  seixJ 
tribute  only  as  an  acknowledgment  of  the  supreme  civiliza- 
tion. All  the  barbarians  send  their  tribute  by  the  different 
waterways  which  are  used  by  different  provinces. 

The  tribute  from  the  different  provinces  consists  mostly 
of  native  products.  The  articles  distinguished  by  the  names 
of  particular  localities  such  as  silk,  hemp,  lead,  pine-trees 


DIRECT  TAXES  643 

and  strange  stones  from  the  valleys  of  the  Tai,  variegated 
feathers  of  pheasants  from  the  valleys  of  the  Yii,  etc.,  must 
be  products  of  these  localities.  When  a  state  is  located  out 
of  such  localities,  it  should,  therefore,  buy  these  articles 
from  the  neighboring  states,  and  send  them  as  its  tribute. 
In  this  way  a  state  which  has  no  distinguishable  product,  is 
still  held  to  the  obligation  of  sending  tribute.  This  system 
proves  that  there  was  a  certain  degree  of  commercial  de- 
velopment. 

The  sending  of  tribute  instead  of  agricultural  products  is 
really  an  advancement  of  civilization.  Because  the  imperial 
domain  is  near  the  capital,  the  people  pay  produce  in- 
stead of  tribute;  and  because  the  other  four  domains  are 
far  from  the  capital,  the  people  pay  produce  to  the  local 
governments  of  their  states,  and  the  princes  convert  them 
into  tribute  and  send  it  to  the  capital.  This  is  for  the 
convenience  of  both  the  people  and  the  princes,  and  has  the 
advantage  of  saving  the  cost  of  transportation.  It  was  this 
that  Sung  Shen  Tsung  referred  to  when  he  said  that  the 
"  Tribute  of  Yii  "  conforms  to  the  idea  of  the  system  of 
*'  equal  transportation."  ^ 

The  question  naturally  arises,  why  the  princes  should  not 
send  money  instead  of  tribute,  since  money  would  be  still 
more  convenient.  In  all  probability  the  economic  develop- 
ment of  that  time  had  not  yet  reached  the  stage  of  money 
economy.  Even  if  it  had,  however,  there  were  also  other 
reasons  for  sending  tribute.  First,  the  government  was  the 
greatest  consumer  of  the  whole  empire,  and  it  needed  all 
the  varied  things  which  came  as  tribute.  Secondly,  since 
the  government  was  the  only  large  single  consumer,  and  the 
general  economic  condition  of  the  people  was  still  very  low, 
the  government   would   find   it   very   difficult   to  buy   such 

•  General  Research,  ch.  xx. 


644       ^^^  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

things  from  the  merchants,  since  they  would  not  bring 
many  of  them  to  the  imperial  capital,  there  being  no  com- 
mercial demand  for  them  to  make  this  profitable.  There- 
fore, if  all  the  provinces  had  sent  money  instead  of  tribute, 
it  would  have  been  of  less  use  to  the  government  than  the 
tribute,  because  the  government  would  have  been  unable 
to  convert  the  money  into  the  articles  which  it  needed. 
Thirdly,  money  was  not  generally  used  in  a  large  amount 
by  the  people,  so  the  princes  could  more  easily  secure  the 
articles  than  collect  money  from  their  subjects.  Fourthly, 
even  if  they  could  collect  a  large  sum  of  money,  it  would 
not  have  been  good  for  the  provinces  to  send  away  their 
circulating  money  to  the  imperial  capital,  since  the  money 
circulating  in  their  markets  was  small  in  amount.  Nor 
would  it  have  been  good  for  the  capital  to  receive  the  addi- 
tional money  from  all  the  provinces,  as  this  would  have 
raised  the  prices  in  its  markets.  In  short,  we  must  remem- 
ber that  there  were  no  bills  of  exchange,  so  money  if  sent 
at  all,  would  have  to  be  sent  in  cash,  and  that,  since  the 
feudal  states  were  semi-independent,  and  the  central  gov- 
ernment did  not  generally  spend  money  outside  of  the  im- 
perial domain,  no  exchanges  were  made.  Therefore,  the 
sending  of  money  would  really  not  have  been  a  good  policy. 
Although  the  paying  of  taxes  in  tribute  is  not  so  highly 
developed  a  form  of  taxation  as  paying  them  in  money,  it  is 
still  a  great  advance,  since  there  is  a  conversion  of  the  tax 
paid  in  kind  into  the  tax  paid  in  value,  which  is  represented 
by  the  tribute. 

In  Chinese  economic  history  there  are  two  institutions 
contrary  to  the  principles  of  the  "  Tribute  of  Yii."  The  one 
is  the  canal-transportation  of  rice  from  the  provinces  to  the 
capital.  According  to  the  ''  Tribute  of  Yu,"  only  the  im- 
perial domain  pays  agricultural  products  as  taxes,  while 
other  provinces  send  only  their  tribute.     In  fact,  the  capital 


DIRECT  TAXES  645 

depends  upon  its  own  domain  for  its  food  supply,  and  does 
not  require  the  farther  provinces  to  transport  their  rice  to  it. 
The  system  of  transporting  rice  to  the  capital  began  with 
Han  Kao  Ti  (350-357  A.  K.  or  202-195  B.  C).  At  the 
beginning,  the  annual  transportation  amounted  to  only  sev- 
eral hundred  thousand  bushels.  But,  during  the  reign  of 
Han  Wu  Ti,  it  increased  to  six  million  bushels.  From  that 
time  to  the  present  day  the  food  supply  of  the  capital  has 
come  from  great  distances,  and  the  cost  of  transportation  is 
a  great  waste  of  the  public  revenue. 

Since  this  system  is  against  the  principles  of  the  "  Tribute 
of  Yii."  and  involves  economic  waste,  why  has  it  continued 
for  so  long  a  time?  Why  did  none  of  the  statesmen  of  dif- 
ferent dynasties  abolish  it?  To  explain  this  we  may  con- 
sider it  from  different  standpoints.  First,  it  has  economic 
reasons,  (a)  As  the  capital  is  the  center  of  industry  and 
commerce,  but  not  of  agriculture,  it  needs  the  provinces  to 
supply  its  food.  But  this  is  a  sign  of  the  neglect  of  agri- 
culture. As  China  was  supposed  to  be  an  agricultural  coun- 
try, every  locality  should  have  a  sufficient  supply  of  food. 
Although  the  capital  itself  cannot  produce  sufficient  rice, 
why  should  its  neighborhood  not  be  able  to  supply  its  de- 
mand? This  is  the  chief  defect  of  the  government,  that  it 
does  not  develop  the  land  in  its  surrounding  districts,  (b) 
In  general,  at  the  beginning  of  a  dynasty,  the  transporta- 
tion of  rice  is  small  in  amount,  but  in  its  middle  or  end  has 
become  great.  This  shows  the  increasing  extravagance  of 
the  government.  Whenever  the  government  becomes  ex- 
travagant, it  consumes  more  rice:  hence  this  transportation 
cannot  be  stopped,  (c)  Even  though  the  neighbors  of  the 
capital  did  not  produce  rice  enough,  and  the  government 
was  extravagant,  why  should  the  government  not  buy  rice 
from  merchants  in  the  capital  instead  of  transporting  it 
from  a  long  distance?^     Because  there  was  no  private  trans- 


646       THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

portation  of  rice  on  a  sufficiently  large  scale  to  support  the 
government.  In  old  times,  transportation,  especially  of  rice, 
was  extremely  difficult.  The  cost  of  transportation  was  so 
great  that  the  merchants  might  make  no  profit,  but  actually 
lose.  Therefore,  the  government  itself  transported  rice,  and 
appointed  high  officials  to  take  charge  of  it.  This  was  the 
fundamental  reason  for  the  existence  of  this  system. 

Secondly,  there  are  military  and  political  reasons.  The 
chief  consumers  of  rice  are  not  the  members  of  the  court, 
but  the  soldiers.  The  amount  of  rice  transported  corres- 
ponds with  the  number  of  soldiers.  In  order  to  strengthen 
the  power  of  the  capital,  the  government  must  have  its  own 
transportation  of  food,  employing  its  own  ships  and  its 
own  employees,  irrespective  of  any  circumstance. 

To-day,  although  the  capital  needs  the  food  supply  from 
the  southern  provinces,  the  system  of  canal-transportation 
should  be  abolished.  First,  the  government  should  develop 
the  land  to  the  north  for  the  fundamental  solution  of  this 
problem.  Secondly,  it  may  depend  on  the  private  transpor- 
tation of  the  merchants,  since  the  transportation  is  now 
much  easier  than  it  was  formerly.  Thirdly,  even  if  the 
government  transportation  were  necessary,  the  rice  can  be 
transported  either  along  the  sea-coast  or  by  the  railways. 
This  is  much  simpler  and  more  economical.  Therefore,  the 
abolition  of  canal-transportation,  and  the  change  from  a 
tax  paid  in  rice  for  the  transportation  to  a  tax  paid  in  money 
must  occur  in  the  near  future. 

The  other  institution  contrary  to  the  principles  of  the 
*'  Tribute  of  Yii  "  is  the  requirement  of  tribute  from  differ- 
ent localities.  What  the  "  Tribute  of  Yii  "  calls  tribute  is 
really  the  land  tax,  which  is  the  only  tax  of  the  government. 
But,  from  the  Han  dynasty,  the  government  required  the 
famous  products  of  different  places  as  tribute.  At  the  be- 
ginning, it  always  said  that  the  value  of  the  tribute  should 


DIRECT  TAXES  647 

be  substituted  for  the  amount  of  the  regular  taxes.  But  in 
later  times  it  demanded  the  tribute  in  addition  to  the  reg- 
ular taxes.  Sometimes  bad  rulers  wanted  such  things,  and 
sometimes  bad  officials  presented  them  in  the  expectation 
of  receiving  some  special  favor.  This  was  really  an  un- 
lawful tax,  and  the  people  suffered  a  great  deal.  Such  a 
bad  custom  is  nominally  abolished  by  the  present  dynasty, 
and  those  products  needed  by  the  government  are  bought 
with  public  money  by  the  officials.^  But  the  purchases  by 
the  officials  still  give  trouble  to  the  people,  and  such  bad  re- 
sults will  be  extinguished  only  under  a  real  constitutional 
government. 

We  have  already  seen  that  the  Three  Dynasties  taxed  the 
land  at  the  same  rate  of  one-tenth,  and  that  such  rate  was 
uniform  throughout  the  whole  empire.^  But  this  might  be 
simply  the  ideal  plan  of  Confucius,  not  conforming  in  fact 
to  the  system  of  the  ancients.  Take,  for  example,  the  OfR- 
cial  System  of  Chou.  The  tax  on  the  gardens  and  the 
houses  of  the  cities  was  at  the  rate  of  one-twentieth  of  their 
income:  that  on  the  land  of  the  suburbs,  one-tenth;  that  on 
the  land  of  the  country,  three-twentieths:  that  on  the  land 
of  the  crown  domain  governed  by  the  imperial  officers,  two- 
tenths:  and  that  on  the  timber  land,  five-twentieths."'  This 
system  had  different  rates  in  regard  to  different  lands 
or  to  the  same  land  in  different  localities.  It  has  been  dis- 
puted because  it  is  not  harmonious  with  the  principles  of 
Confucius.  Of  course,  it  does  not  conform  to  Confucius' 
system,  but  it  might  nevertheless  have  been  the  actual  sys- 
tem of  the  Chou  dynasty. 

Confucius  approves  of  the  system  of  tithes,  and  such  a 

'  The  tribute  sent  by  the  dependencies  is  not  under  this  rule,  because 
the  dependencies  do  not  pay  regular  taxes. 

2  Cf.  supra,  p.  499. 
•  Ch.  xiii. 


648       THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

theory  is  justifiable.  Prof.  Edwin  R.  A.  Seligman  says: 
"  Since  land  itself  is  not  private  property,  since  land  is  not 
bought  and  sold,  the  faculty  of  the  taxpayer  can  be  meas- 
ured not  by  the  value  of  the  land,  but  by  the  value  of  its 
produce,  which  is  in  some  proportion  to  the  quantity  of  the 
land."  ^  Therefore,  although  a  tithe  is  a  tax  on  the  gross 
produce,  it  is  a  good  test  of  ability  to  pay. 

According  to  Ricardo,  the  chief  objection  to  tithes  is 
that  they  are  not  a  permanent  and  fixed  tax,  but  increase  in 
value,  in  proportion  as  the  difficulty  of  producing  corn 
increases.^  This  is  true,  but  under  Confucius'  system 
this  objection  practically  does  not  exist.  Every  man  re- 
ceives the  same  amount  of  land,  one  hundred  acres,  from  the 
government,  produces  a  similar  amount  of  product,  and 
pays  a  similar  amount  of  tax.  There  is  no  great  difference 
in  regard  to  either  the  increasing  difficulty  of  producing 
corn,  or  the  value  of  the  tax.  Although  the  productivity  of 
the  farmers  varies  in  five  grades,^  the  majority  of  them 
must  be  the  ordinary  farmers,  neither  the  best  nor  the  worst. 
Therefore,  a  rate  of  tax  equal  to  one-tenth  of  the  produce  is 
really  a  permanent  and  fixed  tax. 

It  should  be  noted  that  the  tithe  is  a  tax  for  the  state,  not 
for  the  church.  The  church  in  China  has  no  revenue  from 
taxation  whatever,  since  it  is  without  the  taxing  power. 

2.  Later  Development  of  the  Land  Tax 

The  land  tax  is  the  chief  tax  of  China,  so  there  are  numer- 
ous interesting  facts  about  it.  We  shall  not  go  into  all  the 
details,  but  shall  merely  pick  out  the  most  important  events 
to  show  its  development.     Since  the  tax  system  of  the  Three 

'  iLssays  in  Taxation,  p.  14. 

^Political  Economy,  Bohn's  edition,  pp.  158-9. 

"  C/.  supra,  pp.  390-391. 


DIRECT  TAXES  649 

Dynasties  is  mixed  up  with  the  theories  of  Confucius,  and 
has  been  explained  above,  we  shall  begin  with  the  end  of 
the  Chou  dynasty. 

In  43  B.  K.  (594  B.  C),  Duke  Hsiian  of  l.u  began  to  tax 
the  land  of  the  people  by  acres.  Formerly,  as  the  public 
fields  existed,  the  people  simply  contributed  their  labor  to 
the  public  fields,  and  paid  only  its  produce  as  a  tax.  This 
was  for  the  enlargement  of  the  people's  wealth.  But,  since 
Duke  Hsiian  did  not  care  much  for  the  people,  they  did  not 
pay  much  attention  to  the  public  fields.  Therefore,  he  taxed 
their  private  fields  directly  by  acres,  and  abandoned  the  sys- 
tem of  public  fields.  .Although  the  rate  of  tax  was  still  one- 
tenth,  the  government  exercised  more  power  over  the  i>eople. 
and  the  tax  was  more  efficient  and  regular.  This  was  really 
an  advance  in  the  tax  system.  Rut  Confucius  did  not  like  it. 
because  he  thought  that  Duke  Hsiian  would  exhaust  the 
wealth  of  the  people,  and  he  recorded  his  disapproval  in  the 
Spring  and  Autumn.^ 

In  204  A.  I\.  (348  B.  C. ),  just  after  ihe  destruction  of 
ising  tien  (202  A.  K.),  the  state  of  Ch'in  began  to  enact  a 
tax  system.  This  was  an  imix)rtant  event,  because  the 
land  began  to  be  subject  to  private  ownership,  and  the  basis 
of  taxation  was  changed  from  gross  produce  to  property. 
The  rate  of  tax  was  unknown,  but  this  system  was  really  an 
advance. 

The  rate  of  land  tax  was  low  during  the  Han  dy- 
nasty. At  the  beginning,  the  rate  was  one-fifteenth  of  its 
produce.  But  the  most  econonn'cal  emperor  was  Han  Wen 
Ti.  In  the  twelfth  year  of  his  reign,  he  renn'tted  half  the 
land  tax.  in  the  next  year  (3X5  A.  K.  or  167  B.  C.)  he- 
remitted  it  entirely.  In  the  second  year  of  his  son's  reign 
(397  :\.  K.  or  155  B.  C. )  the  government  began  to  renew 

'  Ly.  Liussi'.s.  vol.  V.  pt.  i.  p.  3^^?. 


650       THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

the  land  tax  which  had  been  remitted  for  twelve  years. 
Then  its  rate  was  reduced  to  one-thirtieth,  and  it  was  paid 
according  to  the  number  of  acres. 

During  the  first  part  of  the  reign  of  Han  Chang  Ti  (about 
627-629  A.  K.  or  76-78  A.  D.),  the  land  tax  was  paid  in 
money.  In  716  A.  K.  (165  A.  D.),  Han  Huan  Ti  began  to 
require  ten  copper  coins  for  each  acre.  It  was  the  first  time 
that  money  was  required  for  the  land  tax.  Han  Ling  Ti 
did  the  same  in  736  A.  K.  (185  A.  D.)  Both  were  bad 
emperors,  and  such  a  tax  was  an  addition  to  the  regular 
tax.     However,  this  was  not  a  permanent  system. 

From  the  Tsin  dynasty  to  the  first  part  of  the  Tang  dy- 
nasty the  land  tax  was  mixed  up  with  the  poll  tax  and  the 
family  tax.  The  person  or  the  family  was  the  basis  of  taxa- 
tion. Each  person  or  family  paid  a  uniform  rate  of  taxes. 
At  that  time  there  was  an  equal  distribution  of  public  land, 
so  that  the  faculty  of  everyone  was  practically  equal,  and 
each  person  was  able  to  pay  an  equal  tax. 

After  the  Three  Dynasties,  the  most  famous  system  of 
taxation  was  the  three-taxes  system  of  the  Tang  dynasty. 
In  1 175  A.  K.  (624  A.  D.),  the  law  was  made  as  follows: 
Among  all  the  recipients  of  public  land,  each  adult  man 
annually  contributed  two  bushels  of  rice,  which  was  called 
land  tax.  According  to  the  native  products  of  its  town, 
each  family  annually  contributed  an}^  of  the  three  kinds  of 
silk — chilan,  ling  and  shih — twenty  cubits  in  all,  and  three 
taels  of  floss-silk;  if  there  was  no  silk  industry,  it  paid 
twenty-five  cubits  of  cloth  and  three  catties  of  flax;  such  a 
tax  was  called  the  family  tax.  The  regular  length  of  time 
for  the  public  service  was  twenty  days  in  one  year.  During 
a  leap  year,  two  days  were  added.  He  who  did  not  serve  it 
gave  three  cubits  of  silk  for  each  day.  Such  a  tax  was 
called  a  labor  tax,  or  poll  tax.  In  some  special  cases,  if 
fifteen  days  were  added,  the  family  tax  was  remitted;  if 


DIRECT  TAXES  65 1 

thirty  days  were  added,  both  the  land  tax  and  the  family 
tax  were  remitted.  But,  on  the  whole,  the  service  was  not 
longer  than  fifty  days.^ 

All  these  three  taxes  were  in  hamiony  with  the  faculty  of 
the  people.  Since  each  man  received  one  hundred  acres  of 
public  land,  he  was  able  to  pay  the  land  tax ;  since  he  had  a 
family,  he  was  able  to  pay  the  family  tax ;  and  since  he  had 
his  own  body,  he  was  able  to  pay  the  labor  tax.  All  the 
requirements  were  based  upon  what  he  had,  not  upon  what 
he  had  not.  But  the  distribution  of  the  public  land  was  the 
fundamental  thing  which  enabled  him  to  pay  all  the  taxes. 
This  is  the  reason  that  this  law  was  famous. 

I'nder  the  system,  of  the  three  taxes,  the  person  was  the 
basis  of  taxation,  and  the  taxes  were  paid  in  kind,  not  in 
money.  But  after  the  decay  of  this  system,  Yang  Yen,  the 
prime  minister,  established  the  famous  system  of  summer 
and  autumn  taxes  in  1331  A.  K.  (780  A.  D.).  The  decree 
reads  as  follows  : 

All  families,  no  matter  whether  native  or  stranger,  should 
be  registered  according  to  their  present  residence.  All  per- 
sons, no  matter  whether  adult  or  young,  should  be  classi- 
fied according  to  their  wealth.  .  .  .  The  taxes  of  the  perma- 
nent residents  are  collected  twice  a  year,  in  summer  and 
autumn.  Those  who  find  it  more  convenient  may  pay  them 
in  three  periods.  All  other  direct  taxes  are  abolished.  But 
the  fixed  amount  of  poll  tax  will  remain.  The  total  land  tax 
is  fixed  according  to  the  amount  of  land  which  has  been  cul- 
tivated in  the  year  of  [1330  A.  K.].  The  summer  tax  should 
be  paid  not  later  than  the  sixth  month,  and  the  autumn  tax 
not  later  than  the  eleventh  month. ^ 

'  Old   History    of   Tang,   ch.    xlviii.     General   Political   History,   ch. 
ccxxxiv.     General  Research,  ch.  ii. 

'  Old  History  of  Tang,  ch.  xlviii. 


^c,2       THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

Yang  Yen  was  a  great  reformer.  He  abolished  all  other 
direct  taxes,  and  reduced  them  to  the  land  tax  only.  The 
poll  tax  was  included  in  the  land  tax.  This  was  the  first 
time  that  the  system  of  '^  single  whip  "  ^  was  originated. 
He  made  no  difference  between  the  stranger  and  the  native, 
nor  between  the  young  and  the  adult.  The  only  basis  of 
direct  taxation  was  the  land,  not  the  person.  It  was  simple 
and  uniform.  The  officials  could  not  practice  corruption, 
nor  could  the  people  evade  their  dues.  Since  this  time  the 
land  tax  has  been  collected  in  money,  and  in  two  periods  of 
the  year.  This  was  an  epoch-making  revolution  in  the 
financial  systen.  It  changed  entirely  the  tax  system  of  the 
ancients,  and  served  as  a  model  for  all  succeeding  dynasties. 

In  1345  A.  K.  (794  A.  D.),  Lu  Chih  criticized  the  system 
of  summer  and  autumn  taxes  as  follows : 

The  production  of  wealth  is  dependent  upon  the  labor  of  men. 
Therefore,  when  the  ancient  kings  regulated  taxation,  they 
took  the  person  as  the  basis.  They  did  not  increase  one's  land 
tax  because  he  was  diligent  in  agriculture,  nor  diminish  it  be- 
cause he  was  lazy;  hence  the  land  products  were  plentiful. 
They  did  not  augment  the  family  tax  because  the  family  ac- 
cumulated its  property,  nor  exempt  it  because  the  family  was 
not  a  native ;  hence  the  people  were  firmly  attached  to  their 
locality.  They  did  not  give  the  person  more  work  because 
he  was  good,  nor  relieve  anyone  of  personal  service  because 
he  was  neglectful ;  hence  the  people  were  diligent.  Therefore, 
the  people  were  comfortable  in  their  living,  and  tireless  in 
their  efforts  for  the  production  of  wealth. 

Now,  the  establishment  of  the  summer  and  autumn  taxes 
takes  only  income  and  property,  not  the  person,  as  the  basis. 
But,  among  the  classes  of  income  and  prop'^rty,  some  are  kept 
in  a  pocket  or  a  box,  and  some  are  stored  up  in  gardens 
or   granaries.      In   the   former   case,   although   they   are   very 

^  Cf.  infra,  pp.  656,  667-8. 


DIRECT  TAXES  653 

valuable  things,  nobody  can  see  them.  In  the  latter  case, 
although  their  value  may  be  little,  everyone  thinks  that  their 
owner  is  rich.  Some  are  circulating  and  productive  capital 
goods,  and  some  are  used  for  consumption,  such  as  houses 
and  furniture.  The  former  may  be  in  a  small  quantity,  but 
they  receive  income  every  day.  The  latter  may  be  capitalized 
at  a  high  price,  but  they  do  not  bring  any  profit  even  in  a 
whole  year.  There  are  many  cases  similar  to  these.  If  we 
take  them  as  a  whole  for  the  assessment,  it  must  lose  equity 
and  increase  fraudulence.  Hence,  those  who  keep  personal 
property  and  move  anywhere  usually  escape  taxes,  and  those 
who  pursue  agriculture  and  establish  their  permanent  home 
always  have  to  pay.  Such  a  system  induces  the  people  to  com- 
mit fraud,  and  tends  to  drive  them  away  because  of  their  de- 
sire to  escape  public  labor.  Their  productive  effort  must  be 
weakened,  and  the  public  revenue  must  be  insufficient.^ 

The  theory  of  Lu  Chih  represents  the  old  theory  of  taxa- 
tion. Its  first  part  clings  to  the  old  system,  the  person  being 
the  basis.  It  held  true  in  the  ancient  time,  since  each  person 
was  nearly  equal  to  every  other,  and  received  an  equal  share 
of  land.  But  it  was  not  true  in  the  medieval  time,  when  the 
ancient  system  of  land-distribution  was  broken  up,  and  the 
wealth  of  the  people  had  become  unequal.  Moreover,  his 
theory  is  contrary  to  the  fundamental  principle  of  taxation. 
According  to  him,  taxes  on  income  and  property  are  a  pen- 
alty upon  the  efficient  producer.  He  failed  to  realize  the 
principle  of  faculty.  However,  the  latter  part  of  his  theory 
is  good,  because  it  points  out  the  defects  in  the  sumnier- 
and-autumn-taxes  system.  The  objections  which  he  urges 
are  practically  the  same  as  those  brought  against  the  general 
property  tax  to-day.^ 

According  to  the  opinion  of  Ma  Tuan-lin,  the  basis  of 

*  General  Political  History,  ch.  ccxxxiv. 
'  Seligman's  Essays  in  Taxation,  pp.  24-33. 


654       ^^^  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

taxation  from  the  Tsin  dynasty  to  the  Tang  dynasty  was 
the  family  rather  than  the  land.  But,  since  every  family 
received  a  share  of  land,  the  family  tax  really  included  the 
land  tax.  Although  the  Tang  dynasty  separated  the  three 
taxes,  the  payer  of  them  was  also  the  land-holder.  In  the 
middle  part  of  this  dynasty  land  became  private  prop- 
erty, being  sold  and  bought,  and  the  system  of  land  distri- 
bution was  entirely  broken  down.  The  people  who  for- 
merly paid  the  three  taxes  were  mostly  not  land- 
holders. How  could  they  be  taxed  in  the  same  way  as  the 
rich?  Moreover,  after  the  rebellions  (1306-1313  A.  K.  or 
755-762  A.  D.)  the  population  was  changed,  and  the  census 
could  not  be  the  basis  of  taxation.  The  only  thing  un- 
changed was  the  land.  Therefore,  to  take  the  amount  of 
land  cultivated  in  the  year  1330  A.  K.  as  the  fixed  amount 
for  the  establishment  of  the  summer  and  autum.n  taxes  was 
a  good  system  for  the  time  being,  although  it  was  not  the 
permanent  plan  of  the  state.  If  the  three-taxes  system 
should  be  reestablished,  the  land-distribution  system  must  be 
first  reestablished.  As  long  as  the  land  could  not  be  equally 
distributed,  the  system  of  summer  and  autumn  taxes  was 
the  best. 

Another  tax,  the  "  mouth  tax  "  of  different  dynasties, 
always  took  the  person  as  the  basis,  modification  being  made 
only  in  accordance  with  age.  But  inequality  in  wealth 
has  existed  for  a  long  time.  According  to  the  old  system, 
although  a  young  boy  may  inherit  a  great  fortune,  he  pays 
a  small  tax ;  while  the  adult,  although  he  may  be  very  poor, 
is  burdened  with  a  heavy  tax.  Is  this  not  unjust  and  ab- 
surd ?  Now,  the  system  of  summer  and  autumn  taxes  clas- 
sified the  people  according  to  their  wealth  without  regard  to 
their  age.  This  is  quite  correct.  The  defects  of  this  sys- 
tem pointed  out  by  Lu  Chih  rest  on  the  administration,  but 
not  on  the  system  itself.     For  both  agriculture  and  com- 


DIRECT  TAXES  655 

merce  can  get  riches.  Although  the  merchants  find  it  easier 
to  evade  taxes,  and  the  farmers  suffer  from  the  burden,  the 
suft'erers  are  nevertheless  the  rich  people.  Is  it  not  com- 
paratively better  than  to  tax  the  people  according  to  the 
original  census  without  regard  to  their  wealth? 

Ma  Tuan-lin  goes  still  a  step  further,  to  show  the  defects 
of  a  tax  system  based  on  the  person.  According  to  Chinese 
history  (before  the  present  dynasty),  the  acres  of  land  culti- 
vated increased,  but  the  population  decreased.  He  cites 
this  to  show  that  the  "  mouth  tax  "  and  the  *'  door  tax  " 
made  the  people  dishonest.  Then  he  points  out  the  incor- 
rectness of  the  theory  of  Lu  Chih,  who  urged  that  the 
basis  of  taxation  should  be  the  person,  by  saying  that  the 
abilities  of  men  are  not  equal.  Although  they  are  all  human 
beings,  some  are  clever  and  some  are  stupid.  Although 
they  all  do  business,  some  are  successful  and  some  fail.  There 
are  people  who  rise  from  deep  poverty  to  become  million- 
aires, and  who  have  additional  ability  to  support  others. 
There  are  other  people  who  cannot  preserve  even  a  little  of 
their  inheritance,  and  who  regard  even  their  lives  as  burdens. 
Even  sages  cannot  make  men  alike.  Therefore,  he  con- 
cludes that  to  take  land  as  the  basis  of  taxation,  and  in- 
come as  the  test  of  ability  to  ])ay.  was  a  necessary  policy  of 
that  time.' 

The  theory  of  Ma  Tuan-lin  is  the  doctrine  of  faculty. 
Its  fundamental  point  is  still  true,  but  its  application  to 
modern  times  must  be  modified.  Since  land  is  not  the  only 
test  of  ability  to  pay,  land  cannot  be  the  basis  of  taxation. 

The  payment  of  the  land  tax  in  silver  began  in  the  Sung 
dynasty.  In  1628  A.  K.  (  1077  A.  D.)  the  summer  tax 
consisted  of  31,940  taels  of  silver,  and  the  autumn  tax  of 
28,197  taels.     The  Kin  and  the  ^'iian  dynasties  never  col- 

'  Ccncral  Research,  ch.  iii. 


656       THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

lected  the  land  tax  in  silver.  Under  the  Ming  dynasty,  in 
1927  (1376  A.  D.),  there  was  an  ordinance  that  silver  be 
allowed  to  be  substituted  for  rice;  and  during  the  reign  of 
Ch'eng  Tsu  (1954- 1975  A.  K.  or  1403- 1424  A.  D.)  the 
annual  tribute  consisted  of  300,000  taels  of  silver.  But 
these  were  simply  for  the  convenience  of  payment,  and  the 
silver  was  regarded  like  other  commodities.  It  is  only 
since  1987  A.  K.  (1436  A.  D.)  that  the  land  tax  has  begun 
to  be  regularly  paid  in  silver.  In  this  year  the  land  tax  of  all 
the  southern  provinces  was  paid  in  silver,  and  one  tael  was 
equal  to  four  bushels  of  rice.  In  2038  A.  K.  (1487  A.  D.) 
this  system  was  extended  to  all  the  northern  provinces,  and 
one  tael  was  equal  to  only  one  bushel.  These  figures  show 
the  fluctuation  in  the  value  of  metal  in  comparison  with  that 
of  rice.  But  this  system  was  a  revolution  in  economic  his- 
tory, and  it  has  continued  to  the  present  time.^ 

In  2132  A.  K.  (158 1  A.  D.)  the  system  of  "  single  whip  " 
was  universally  established.  The  total  amount  of  land  tax 
and  poll  tax  of  each  district  was  fixed,  and  the  poll  tax  was 
equally  distributed  to  the  land.  Whenever  there  was  public 
labor,  the  officials  employed  laborers  with  payments.  All 
the  different  kinds  of  contributions,  tribute,  etc.,  were  simpli- 
fied into  a  single  item,  and  they  were  supplied  by  the  officials 
with  the  money  of  the  land  tax.  Land  was  the  only  object 
of  direct  taxation,  and  was  taxed  according  to  acreage. 

^  The  payment  of  the  land  tax  in  gold  began  with  the  Sung  dynasty. 
In  1528  (977  A.  D.),  one  tael  of  gold  was  equal  to  eight  thousand 
copper  coins.  In  1948  (1397  A.  D.),  Ming  T'ai  Tsu  decreed  that  the 
land  tax  may  be  paid  in  gold,  one  tael  being  substituted  for  twenty 
bushels  of  rice.  In  these  cases,  gold  was  used  only  like  commodities. 
In  fact,  whether  the  tax  is  paid  in  kind  or  in  money  depends  on 
the  economic  condition  of  the  people.  The  old  Chinese  usually  held 
the  opinion  that  it  is  better  for  the  farmers  to  pay  tax  in  kind,  because 
they  need  not  exchange  their  products  for  money,  and  their  products 
are  not  subject  to  market  price.  Such  a  view  was  quite  true,  s*nce 
China  was  an  agricultural  country. 


DIRECT  TAXES  657 

The  worst  thing  in  the  financial  system  of  the  Ming  dy- 
nasty was  the  constant  increase  of  the  land  tax.  Formerly, 
the  annual  revenue  of  the  national  treasury  was  about  2,430,- 
000  taels  of  silver,  and  the  expenditures  were  not  over 
2,cxx),ooo  taels,  sometimes  only  seven  or  eight  hundred 
thousand  taels.  There  was  a  rule  that  the  government  spent 
seven-tenths,  but  reserved  three-tenths  for  any  emergency, 
such  as  famine  or  military  expenses.  This  was  in  harmony 
with  the  principles  of  Confucius.  But  in  2065  A.  K.  (1514 
A.  D.)  Ming  \Vu  Tsung  increased  the  land  tax  temporarily 
to  the  amount  of  i  ,000,000  taels  for  the  reconstruction  of  a 
palace,  because  he  had  exhausted  the  reserve  fund.  This 
was  the  first  time  of  increasing  tax.  In  2102  A.  K.  (1551 
A.  D.j,  when  the  military  expenditures  were  increased 
Ming  Shih  Tsung  got  a  temporary  addition  of  tax,  1,200.- 
000  taels,  distributing  it  to  the  land  tax  of  Kiangsu  and 
Chekiang.  From  2169  to  2171  A.  K.  (161 8-1620  A.  D.), 
when  the  rebellion  broke  out  in  Manchuria,  Ming  Shen 
Tsung  increased  the  land  tax  of  the  whole  empire  three 
times,  the  total  addition  being  5,200,000  taels;  and  this 
became  a  permanent  addition.  In  2181  A.  K.  (1630  A.  D. ) 
Ming  Chuang-lieh  Ti  made  an  addition  of  more  than  1,650.- 
000  taels.  In  2186  A.  K.  he  raised  the  land  tax  one-tenth, 
which  was  called  a  subsidy.  Again,  he  made  an  addition 
of  2,800,000  taels  in  2188,  and  another  addition  of  7,300,- 
000  taels  in  2190.  From  2169  ^o  this  year,  the  total  in- 
crease in  the  annual  land  tax  amounted  to  16,900,000  taels. 
The  government  wanted  to  get  money  in  order  to  put  down 
the  rebels  and  the  banditti,  but  the  people  could  not  bear 
the  burden,  so  that  they  were  driven  to  become  banditti. 
This  was  one  cause  of  the  downfall  of  the  Ming  dynasty. 
Therefore,  in  2207  A.  K.  (1656  A.  D.)  the  present  dynasty 
abolisherl  all  the  additions  to  the  land  tax  and  brought  it 
back  to  the  original  amount. 


6-8       THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

In  2263  A.  K.  (1712  A.  D.)  the  present  dynasty  made  a 
great  revolution  in  the  tax  system.  This  was  by  making- 
the  amount  of  the  poll  tax  of  2262  A.  K.  a  fixed  burden 
and  freeing  the  increasing  population  from  any  further  poll 
tax/  From  2274  to  2280  A.  K.  (1723-1729  A.  D.)  the  poll 
tax  of  different  provinces  was  added  to  the  land  tax.  Hence, 
China  has  to-day  no  poll  tax,  and  the  people  who  own  no 
land  pay  no  direct  tax  whatever. 

For  a  long  period  the  land  has  been  taxed  by  acre- 
age. In  755  A.  K.  (204  A.  D.)  Tsao  Tsao  taxed  each  acre 
at  four  pints  of  rice.  In  881  A.  K.  (330  A.  D.)  the  Tsin 
dynasty  taxed  each  acre  at  three  pints,  which  was  called  one- 
tenth  of  its  produce;  and  in  912  A.  K.  (361  A.  D.)  this  rate 
was  reduced  to  two  pints.  In  1321  A.  K.  (770  A.  D.)  the 
Tang  dynasty  fixed  the  land  tax  as  follows  :  For  the  summer 
tax,  each  acre  of  the  higher  grade  of  land  paid  six  pints, 
and  that  of  lower  grade,  four  pints ;  for  the  autumn  tax,  one 
pint  was  deducted  from  both  grades.  In  1831  A.  K.  (1280 
A.  D. )  the  Yuan  dynasty  regulated  the  land  tax  at  the  rate 
of  three  pints  for  one  acre,  paid  in  paper  money.  In  the 
beginning  of  the  Ming  dynasty  (1919  A.  K.  or  1368  A.  D.). 
each  acre  was  taxed  at  ^-fh  pints.  All  these  rates  were 
but  general  rates.  Since  the  middle  part  of  the  Tang  dy- 
nasty there  has  been  no  uniform  rate,  and  the  amount  of  rice 
has  mostly  been  paid  in  a  fixed  equivalent  sum  of  money. 

The  land  tax  of  the  present  dynasty  varies  greatly  in  the 
different  provinces.  For  example,  each  acre  in  the  Kansu 
province  is  taxed  from  .0002  to  .1504  tael  of  silver,  from 
.03  to  8. 1 1  pints  of  rice,  and  from  .3  to  .46  of  a  bale  of 
straw.^  Each  acre  in  the  Sian  prefecture  (Shensi  province) 
is  taxed  2.3817  taels  of  silver,  and  from  5.25  to  5.85  pints 

^  Cf.  supra,  pp.  338-9. 

2  A  bale  weighs  fifteen  catties. 


DIRECT  TAXES  659 

of  rice.  These  rates  are  determined  by  custom  rather  than 
by  any  scientific  measure  of  abihty  to  pay.^ 

The  requirement  of  extra  taxes  besides  the  regular  tax 
began  in  the  Five  Dynasties.  In  1477  -'^-  K.  (926  A.  D.) 
the  extra  tax  of  ten  per  cent  was  abohshed.  In  1501  A.  K. 
(950  A.  D.)  the  extra  tax  was  increased  to  twenty  per  cent. 
It  was  pretended  that  the  extra  tax  was  to  provide  against 
any  loss  or  waste  of  the  regular  tax,  because  the  tax  was 
collected  in  kind.  In  the  middle  part  of  the  Ming  dynasty, 
although  the  land  tax  was  paid  in  silver,  the  extra  tax  was 
required  upon  another  pretext — to  make  good  the  loss  from 
melting.  Since  2275  A.  K.  (1724  A.  D.),  the  present  dy- 
nasty has  taken  the  extra  tax  from  the  local  officers  into  the 
central  government,  and  fixed  its  amount,  varying  to  a  great 
extent,  from  two  per  cent  to  twenty  per  cent.  But  it  is  dis- 
tributed again  to  the  magistrates  of  the  districts,  as  an 
addition  to  their  salaries  and  for  other  local  expenditures. 

This  is  not  a  good  system.  If  we  wish  to  get  more 
revenue  for  legitimate  expenditures,  we  should  directly  in- 
crease the  tax  itself,  but  should  not  impose  an  additional 
tax.  It  is  unequal  and  complicated,  and  is  a  source  of  cor- 
ruption. The  magistrate  in  the  first  place  requires  an  addi- 
tion, and  then  his  clerks  require  another  addition.  The 
people  pay  fifty  per  cent  more  than  the  amount  of  the  reg- 
ular tax.  Moreover,  the  poor  sufifer  more  than  the  rich,  be- 
cause their  payment  is  smaller  and  their  resistance  is  weaker. 
Therefore,  the  extra  tax  should  be  abolished. 

In  conclusion,  the  land  tax  is  the  oldest  and  the  most  im- 
portant ta.x  of  China.  According  to  the  budget  of  this  year 
(2462  A.  K.  or  191  I  A.  D.)  the  total  land  tax  is  48,101.346 
taels  of  silver,  lUit,  since  1331  .\.  K.  (780  A.  0.).  there 
has  been  no  great  change  in  the  land-tax  system.     Every 

^  Cases  of  the  Institutes  of  the  Ts'iug  Dynasty  {Ta  Ts'ing  Iltti  Tien 
Shih  Li),  ch.  clxii. 


66o       THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

dynasty  has  simply  followed  in  the  footsteps  of  the  preced- 
ing dynasty,  and  the  people  are  bound  to  pay  the  tax,  not 
according  to  any  sound  principle,  but  according  to  what 
they  had  paid  before.  It  is  far  from  justice.  In  short, 
China  must  reform  the  land  tax  fundamentally,  and  this 
should  also  increase  largely  the  public  revenues. 

II.    PERSONAL    SERVICE 

In  ancient  times  the  revenue  system  was  simple,  the 
land  tax  practically  being  the  only  tax.  But  there  were 
many  kinds  of  work  which  were  necessary  to  the  govern- 
ment and  could  not  be  paid  for  out  of  the  small  revenues. 
Therefore,  the  people  contributed  their  labor  for  all  kinds  of 
public  work  without  receiving  any  payment.  This  was  the 
oldest  form  of  poll  tax,  although  the  tax  was  not  paid  with 
money,  but  with  labor.  Hence,  Confucius  regards  forced 
labor  as  a  tax. 

I.  Principles  of  Confucius 

In  the  feudal  stage  the  people  suffered  from  forced  tabor 
a  great  deal.  Therefore,  Confucius  condemned  any  war/ 
and  any  unnecessary  construction  or  repair  of  buildings,^ 
because  the  people  were  oppressively  employed  for  those 
things.  The  general  principle  of  this  tax  was  the  employ- 
ment of  the  people  at  the  proper  season.^  Mencius  said: 
"  If  the  seasons  of  husbandry  be  not  interfered  with,  the 
grain  will  be  more  than  can  be  eaten."  ^  Indeed,  the  per- 
sonal-service tax  might  easily  interrupt  the  occupations  of 
the  people.     But  Confucius  did  not  advocate  the  abolition 

'  Cf.  supra,  pp.   142-4. 
^  Cf.  supra,  p.  245. 
•^  Cf.  supra,  pp.  79,  627. 
*  Classics,  vol.  ii,  p.  130. 


DIRECT  TAXES  66 1 

of  this  tax,  because  the  people  at  large  at  that  time  were 
unable  to  pay  money  in  its  place.  He  merely  advocated  its 
reform,  and  its  abolition  was  later  the  achievement  of 
Chang  Yiieh,  Van  Yen,  and  Wang  An-shih.' 

Confucius  prescribes  an  age  limit   for  personal   service 
According  to  the  *'  Royal  Regulations  "  and  the  authorities 
of  the  Modern  Literature,  a  man  begins  to  serve  in  public 
work  at  twenty,  and  retires  at  fifty;  he  begins  to  serve  in 
the  army  at  thirty,  and  retires  at  sixty. ^ 

For  the  service  of  public  work,  no  more  than  three  days 
within  a  year  are  allowed.  In  all  employments  of  the 
people  on  public  work,  even  the  strong  men  are  given  only 
a  small  amount  of  work,  the  same  as  that  of  old  men:  and 
even  old  men  are  given  ample  rations,  the  same  as  strong 
men.  In  this  way  favorable  treatment  is  accorded  to  the 
people.  Moreover,  according  to  this  principle,  public  work 
is  not  forced  labor,  but  hired  labor,  since  it  receives  sub- 
sistence.' 

The  most  important  form  of  personal  service  is  military 
duty.  The  people  contribute  not  only  their  labor,  but  also 
their  equipment.  According  to  the  tsiw^  tien  system,  ten 
tsing  together  (eighty  families)  contribute  one  chariot.  But 
many  other  kinds  of  equipment  are  supplied  by  the  gov- 
ernment. 

Kuan  Tzu  was  the  first  one  to  require  the  people  of  six- 
teen tsing  (one  hundred  and  twent3'-eight  families)  to  sup- 
ply seven  bufif-coats."*  Duke  Ch'eng  of  Lu  followed  this 
example  in  39  B.  K.  (590  B.  C).  But  Confucius  C(>n- 
demned  this  law  in  the  Spring  and  Aiitiiiun,  because  the 
making  of  buff-coat  was  not  the  profession  of  the  ordinary 
people,  and  such  a  requirement  was  oppressive."' 

'  Cf.  infra,  pp.  665-7.  *  Cf.  Li  Ki,  bk.  iii.  p.  241. 

»  Ibid.,  pp.  227-8.  ♦  Bk.  V. 

*  Cf.  Classics,  vol.  v,  pt.  i,  p.  s;^/. 


662       THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

The  exemption  from  personal  service  is  as  follows  :  First, 
there  is  an  exemption  for  educated  men.  The  ''  selected 
scholars  "  brought  to  the  notice  of  the  minister  of  education 
are  exempted  from  services  in  their  districts.  The  ''  emi- 
nent scholars  "  promoted  to  the  imperial  university  are  ex- 
empted from  all  services  under  the  department  of  education. 
Secondly,  there  is  an  exemption  for  the  benefit  of  those 
families  which  have  aged  persons  or  sick  persons,  or  deaths. 
When  a  person  becomes  eighty,  one  of  his  sons  is  free  from 
all  services ;  when  he  becomes  ninety,  all  the  members  of  his 
family  are  free.  In  a  family  whose  member  is  disabled  or 
ill,  requiring  the  attendance  of  others  to  wait  upon  him,  one 
man  is  discharged  from  services.  Parties  mourning  for 
their  parents  have  a  discharge  for  three  years,  and  those 
mourning  for  one  year  or  nine  months  have  a  discharge  for 
three  months.  Thirdly,  there  is  an  exemption  for  emi- 
grants and  immigrants.  When  one  is  about  to  move  to 
another  state,  he  is  discharged  from  service  for  three  months 
beforehand.  When  one  comes  from  another  state,  he  is 
discharged  for  a  round  year.  These  are  the  rules  of  Con- 
fucius.^ 

2.  Rules  given  in  the  Official  System  of  Chou 

The  Official  System  of  Chou  gives  many  rules  in  regard 
to  personal  service.  Although  they  are  somewhat  different 
from  those  of  Confucius,  they  are  important  because  they 
were  the  actual  laws  of  the  Chou  dynasty.  Therefore,  we 
shall  mention  some  of  them.  In  the  capital  city  those  from 
twenty  to  sixty,  and  in  the  country  those  from  fifteen  to 
sixty-five,  paid  the  service  tax.^  Five  men  formed  the 
smallest  group,  a  wu;  twenty-five  men  made  up  a  Hang;  one 

*  Cf.  Li  Ki,  bk.  iii,  pp.  232,  243. 

'  Since  the  people  of  the  capital  city  served  the  public  labor  much 
oftener  than  those  of  country,  the  period  of  service  was  shorter. 


DIRECT  TAXES  663 

hundred  men,  a  tsu;  five  hundred  men,  a  Hi;  two  thousand 
five  hundred  men,  a  shih;  and  twelve  thousand  five  hundred 
men,  an  army.  This  standard  was  for  the  raising  of  sol- 
diers, for  the  undertaking  of  hunting  expeditions  and  public 
works,  for  the  driving  away  of  an  enemy,  for  the  capturing 
of  robbers,  and  for  the  collecting  of  taxes.  The  average 
numbers  of  those  people  who  were  strong  enough  to  serve 
in  the  public  labor  were  as  follows :  In  the  families  consist- 
ing of  seven  persons,  each  family  had  three  men :  in  those 
consisting  of  six  persons,  two  families  together  had  five 
men :  in  those  consisting  of  five  persons,  each  family  had 
two  men.  But,  in  all  kinds  of  public  labor,  each  family  was 
required  to  contribute  not  more  than  one  man.  It  was  only 
for  hunting,  or  for  driving  an  enemy  away,  or  for  captur- 
ing robbers,  that  all  the  able-bodied  persons  in  each  family 
were  required  to  take  part.' 

There  were  many  local  officers  who  controlled  all  local 
affairs.  Five  families  formed  the  smallest  group,  and  over 
them  was  the  lowest  officer.  Then  came  some  higher  offi- 
cers— one  for  twenty-five  families,  one  for  one  hundred 
families,  one  for  five  hundred  families,  and  one  for  two 
thousand  five  hundred  families.  The  larger  the  group,  the 
higher  the  officer.  They  were  chosen  from  among  the 
people  themselves.  All  the  personal  services  were  directed 
by  them.  They  were  both  civil  and  military  officers.  In 
time  of  peace  they  were  administrators,  in  time  of  war, 
commanders." 

There  was  an  equalizer  {chi'in  jcn)  who  equalized  the 
personal  services  performed  either  through  physical  labor, 
or  through  the  use  of  animals  and  vehicles.  In  all  cases, 
the  equalization  of  personal  services  was  according  to  the 
year.      In  a  good  year  the  period  of  public  labor  was  three 

'  Chs.  xi,  xii.  '  Ch.  xii. 


664       ^^^  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

days ;  in  an  ordinary  year,  two  days ;  and  in  a  bad  year,  one 
day.  If  there  was  famine  or  epidemic,  there  was  no  re- 
quirement of  personal  service/ 

3.  The  "  Rotation  Tax  "  of  the  Han  Dynasty 
During  the  Ch'in  dynasty  the  people  served  the  local  gov- 
ernment for  one  month,  and  then  the  central  government. 
In  the  whole  year,  the  amount  of  service,  both  as  a  soldier 
at  the  frontier  and  as  a  workman  on  public  work,  was  thirty 
times  more  than  that  of  the  ancients.^  This  was  the  worst 
example  in  Chinese  history. 

At  the  beginning  of  the  Han  dynasty,  the  example  of  the 
Ch'in  dynasty  was  followed.  However,  in  later  times,  the 
law  was  fixed  in  this  way :  The  personal  service  was  called 
"  rotation."  The  "  soldier  rotation  "  was  service  for  one 
month.  The  "  fulfilling  rotation  "  was  a  payment  of  two 
thousand  copper  coins  for  the  length  of  one  month,  which 
might  be  substituted  for  the  soldier  rotation.  The  ''  pass- 
ing rotation  "  was  the  payment  of  three  hundred  coins  in 
substitute  for  the  three  days'  service  at  the  frontier. 

Therefore,  under  the  Han  dynasty,  the  system  of  hired 
labor  was  well  established.  The  wage  of  such  labor  was 
called  "  level  price,"  one  hundred  coins  for  one  day's  labor. 
Hence,  the  total  amount  of  "  rotation  tax  "  for  one  man 
in  one  year  was  two  thousand  three  hundred  coins.  This 
was  really  too  much.^  But,  if  the  Chinese  in  general  had 
been  rich  enough  to  pay  this  tax,  there  would  have  been  no 
forced  labor.  The  fundamental  cause  for  the  existence  of 
forced  labor  was  the  economic  condition  of  the  people. 

^  Ch.  xiv. 

'  History  of  Han,  ch.  xxiv. 

^  Ibid.,  ch.  vii  (commentary).  Besides  this  tax,  there  were  also  the 
poll  tax  and  the  family  tax  (cf.  infra,  pp.  669-671). 


DIRECT  TAXES  ()hz^ 

4.  Reformation  of  Chang  Yiieh 
From  the  beginning  of  Chinese  history,  the  people  have 
been  responsible  for  military  service.  In  1273  A.  K.  (722 
A.  D.)  a  great  revolution  in  the  military  system  took  place. 
At  that  time  the  soldiers  of  the  standing  army  in  the  mili- 
tary stations  served  the  army  from  twenty-one  to  sixty. 
Moreover,  their  families  w^ere  not  exempted  from  other  ser- 
vices. Hence,  they  became  poor  and  weak,  and  deserted 
from  their  stations  in  large  numbers.  The  people  suffered 
from  this  system.  Then  Chang  Yiieh,  the  prime  minister, 
proposed  to  hire  strong  men  for  imperial  guards. 
By  exempting  them  from  other  services  and  giving  them 
favorable  treatment,  deserting  soldiers  were  induced  to  offer 
themselves  for  such  an  employment.  Tang  Hsiian  Tsung 
put  this  proposal  into  effect.  Within  ten  days  he  got  one 
hundred  and  thirty  thousand  good  soldiers.  They  were 
distributed  to  different  stations,  and  ordered  to  come  to  the 
capital  in  rotation.  This  was  the  first  time  that  the  soldiers 
were  separated  from  the  farmers.' 

Since  this  revolutionary  change  in  the  military  system, 
the  Chinese  have  not  been  required  to  serve  in  the  army. 
From  the  military  point  of  view,  there  are  many  objections 
to  this  change.  From  the  social  and  economic  points  of 
view,  however,  the  people  derive  great  benefits.  Although 
the  people  pay  more  taxes  for  the  support  of  soldiers,  they 
are  free  from  all  troubles.  Moreover,  there  is  no  necessity 
for  every  man  to  be  a  soldier,  and  the  specialized  soldier  is 
better  than  the  ordinary  man.  Indeed,  the  separation  of 
the  people  and  the  soldiers  is  justified  by  the  principle  of 
division  of  labor.  Chang  Yueh,  although  criticized  by 
many,  was  a  great  reformer,  and  his  innovation  was  com- 
parable to  the  *'  forced-labor  emancipation  law  "  of  Wang 
An-shih. 

'  General  Political  Historx.  rh.  ccxii. 


666       THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

5.  Reformation  of  Yang  Yen 
We  have  already  learned  that  under  the  three-taxes  sys- 
tem of  the  Tang  dynasty  the  poll  tax  was  paid  either  by  a 
contribution  of  labor  or  by  a  payment  of  silk/  This  was 
in  hamiony  with  the  principles  of  Confucius,  because  there 
was  no  double  taxation  upon  the  person,  and  the  people 
were  not  required  to  contribute  both  labor  and  payment. 
We  have  also  learned  that,  by  the  reformation  of  Yang  Yen, 
the  poll  tax  was  combined  with  the  land  tax.^  This  meant 
a  great  advance  in  civilization,  because  there  was  neither 
poll  tax  paid  in  money  nor  forced  labor.  Therefore,  from 
that  time  on  (1331  A.  K.  or  780  A.  D.)  China  should  not 
have  poll  tax  or  forced  labor  at  all.  This  was  the  great 
achievement  of  Yang  Yen,  and  we  should  give  him  not  less 
credit  than  we  give  to  Wang  An-shih  (a  justice  which  the 
Chinese  have  never  done  him) . 

6.  Reformation  of  Wang  An-shih 
However,  there  was  another  kind  of  forced  labor  coming 
into  existence.  During  the  Tang  dynasty  the  families  were 
classified  into  nine  classes,  according  to  their  wealth,  and 
the  rich  families  were  required  to  take  up  the  public  service. 
We  must  remember  that  this  service  was  an  honorable  ser- 
vice, different  from  ordinary  public  labor.  The  posi- 
tion of  the  rich  people  who  undertook  the  public  service  was 
like  that  of  the  local  officers  of  the  Chou  dynasty.^  But, 
after  1262  A.  K.  (711  A.  D.)  this  position  began  to  be  dis- 
honorable, and  it  gradually  became  similar  to  forced  labor. 
Hence  we  speak  of  it  as  forced  labor.  But  we  must  not 
forget  that  this  forced  labor  was  different  from  the  ordinary 
forced  labor  which  was  abolished  by  Yang  Yen.  The  for- 
mer was  based  on  property,  and  the  latter  on  person. 

^  Cf.  supra.  2  (jj   supra,   pp.  651-2. 

3  Cf.  supra,   p.  663. 


DIRECT  TAXES  667 

In  the  Sung  dynasty  this  forced  labor  became  intolerable 
The  kinds  of  public  labor  were  such  as  the  keeping  and 
transporting  of  government  property,  collecting  taxes,  polic- 
ing, carrying  messages,  etc.  It  was  a  great  burden  especi- 
ally put  on  the  higher  grades  of  families,  and  it  destroyed 
the  property  and  lives  of  many  people. 

In  1621  A.  K.  (1070  A.  D.),  Wang  An-shih  established 
"  the  forced-labor  emancipation  law."  and  it  was  a  great 
revolution  in  the  economic  history  of  China.  The  funda- 
mental point  was  to  change  forced  labor  to  hired  labor. 
Wang  An-shih  based  his  principle  on  the  institutions  of  the 
ancient  kings — that  is,  to  tax  the  people  for  the  wages  of 
the  government  employees.  In  fact,  this  law  substituted  a 
money  tax  for  personal  service.  We  shall  discuss  the  law 
itself  under  the  head  of  property  taxes. 

7.  Final  Settlement 

The  system  of  hired  labor  is  the  best  institution  estab- 
lished by  Wang  An-shih.  Even  for  this  alone  he  deserves 
all  honor.  But  the  system  of  forced  labor  was  revived  in 
1637  A.  K.  (1086  A.  D.),  and  it  was  abolished  again  in 
1645  A.  K.  (1094  A.  D.).  After  1686  A.  K.  (1135  A.  D.) 
the  wages  provided  for  hired  labor  were  used  for  military 
expenses,  and  forced  labor  was  revived  again.  Hence,  both 
the  ordinary  public  service  and  the  higher  public  service 
came  into  existence.  Since  the  Kin  dynasty,  there  has  been 
a  distinction  between  the  service  assigned  to  the  families 
paying  the  land  tax  and  the  service  assigned  to  those  pay- 
ing no  land  tax.  But  their  character  was  that  of  forced 
labor  just  the  same. 

When  the  "  single  whip  "  system  was  universally  adopted 
in  2132  A.  K.  (1581  A.  D.),  the  land  tax  was  increased  to 
take  the  place  of  forced  labor.  The  government  got  money 
from  the  land  for  the  wages  of  hired  labor,  and  the  people 


668       THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

were  freed  from  forced  labor.  But  this  system  was  not 
thoroughly  established  until  the  present  dynasty  (2263-2280 
A.  K.  or  171 2- 1 729  A.  D.).'  To-day  no  one  is  obHged  ,0 
take  up  any  public  labor. 

As  to  the  reasons  for  the  existence  of  forced  labor,  be- 
sides the  fundamental  one  which  we  have  mentioned  above — 
the  economic  condition  of  the  people^ — three  others  may  be 
given.     First,  the  amount  of  taxes  was  so  small  that  it  could 
not  defray  the  wages  of  hired  labor.     Secondly,  except  for 
Yang  Yen's  abolition  of  forced  labor  by  an  augmentation 
of  the  land  tax,  there  was  no  one  who  had  the  wisdom  and 
courage  of  Wang  An-shih  to  devise  a  new  tax  to  take  the 
place  of  forced  labor.      Therefore,   although  the  optional 
payment  of  money  in  lieu  of  personal  service  had  been  an 
institution  of  the  Chou  and  the  Han  dynasties,  forced  labor 
itself  had  never  been  abolished;  and,  although  Wang  An- 
shih  had  abolished  it,  it  was  revived  again  when  the  money 
for  hiring  laborers  was  used  for  other  purposes.     Thirdly, 
since  there  was  no  separate  source  of  revenue  for  local  ex- 
penses, the  public  labor  that  had  to  be  performed  for  the 
local  government  was  necessarily  imposed  upon  the  people 
of  the  locality.       Therefore,  although  military  duty,   the 
chief  service  to  the  nation,  was  abolished  by  Chang  Yiieh, 
local  service  continued  to  be  burdensome   enough  to   the 
people;  and,  although  the  ordinary  forced  labor  was  abol- 
ished by  Yang  Yen,  the  higher  forced  labor  still  existed  in 
the  localities.     These  are  the  three  reasons  for  the  existence 
of  forced  labor. 

As  to  the  evils  of  forced  labor,  it  seems  that  they  resulted 
from  the  ignorance  and  weakness  of  the  mass  of  the  people. 
If  they  had  been  intelligent  and  strong,  their  lives  and  prop- 
erty would  not  have  been  destroyed  by  forced  labor,  such  as 

1  Cf.  supra,  pp.  338-9,  658. 


DIRECT  TAXES 


669 


the  collecting  of  taxes  and  police  duty.  They  might  even  de- 
rive benefit  from  it,  since  there  was  some  compensation  and 
exemption  for  them.  But,  as  a  matter  of  fact,  they  were 
somewhat  timid  and  weak,  so  they  were  apt  to  be  imposed 
upon  by  the  officials  and  their  servants.  Therefore,  even 
after  forced  labor  had  been  changed  to  hired  labor,  they 
were  still  robbed  by  the  officials  and  their  servants.  In  fact, 
the  best  protection  for  the  people  is  to  teach  them  how  to 
protect  themselves.  If  we  want  to  reform  anything  at  all, 
we  must  go  to  the  very  bottom.  Political  education  is  the 
fundamental  thing. 

III.    POLL    TAX 

The  '*  mouth  tax  "  was  a  poll  tax.  It  does  not  appear  in 
the  Confucian  texts,  so  that  there  is  a  presumption  that  this 
tax  did  not  exist  in  ancient  times.  But,  according  to 
Kuan  Tzii,  the  amount  of  the  mouth  tax  was  ten  coins  an- 
nually.' In  the  Official  System  of  Cliou  it  was  called  /».' 
Pan  Ku  says  that  fn  was  for  military  expenditures,  for 
the  reserve  of  the  treasuries,  and  for  the  gifts  of  the  rulers. ""* 
Therefore,  we  are  sure  that  the  mouth  tax  must  have  existed 
in  ancient  times;  but  it  was  probably  v-ery  light.  This  tax 
was  not  approved  by  Confucius,  because  a  person  having 
contributed  his  i>ersonal  service  should  not  be  taxed  twice. 

In  349  A.  K.  (203  B.  C. )  the  mouth  tax  first  occurred  in 
Chinese  history  at  a  regular  rate.  Every  man,  from  fifteen 
to  fifty-six,  paid  annually  one  hundred  and  twenty  copper 
coins  for  the  tax  of  his  body.  This  amount  was  later  re- 
duced either  to  a  half,  one-fourth,  or  one-third.  But 
merchants  and  slaves  paid  double  this  amount.  In  363 
A.  K.  (189  A.  D.)  an  ordinance  was  issued  that  unmarried 
women,  from  fifteen  to  thirty,  should  be  taxed  at  a  rate  five 

'  Bk.  Ixxvi.  '  Ch.  ii. 

•  History  of  Han,  ch.  xxiv. 


6;70       THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

times  that  amount.  It  was  probably  intended  to  increase 
the  population.  Every  boy,  from  seven  to  fourteen,  paid  the 
"  mouth  money,"  twenty  coins  a  year.  During  the  reign  of 
Han  Wu  Ti,  a  boy  began  to  pay  "  mouth  money  "  at  three 
years  old,  and  three  coins  were  added.  In  508  A.  K.  (44 
B.  C.)  the  tax  age  was  changed  to  the  original,  seven  years 
old,  but  the  amount  remained  the  same,  twenty-three  coins. 

Since  the  Tsin  dynasty,  the  poll  tax  has  been  mixed  up 
with  the  land  tax.  In  928  A.  K.  (377  A.  D.)  the  mouth 
tax  was  three  bushels  of  rice;  and  in  934  A.  K.  it  was  in- 
creased to  five  bushels.  But  each  person  received  seventy 
acres  of  public  land  without  paying  the  land  tax. 

After  1 33 1  A.  K.  (780  A.  D.)  the  poll  tax  was  included 
in  the  land  tax  by  Yang  Yen.  Therefore  there  should  be 
no  poll  tax.  But  during  the  Five  Dynasties  it  was  revived, 
and  it  lasted  throughout  the  Sung  dynasty.^ 

The  Yiian  dynasty  regulated  the  poll  tax  in  1831  A.  K. 
(1280  A.  D.).  Each  adult  man  paid  three  bushels  of  rice, 
and  each  young  man,  one  bushel.  This  was  the  standard. 
In  some  families,  each  adult  or  young  man  paid  only  half 
this  amount,  or  each  adult  man  paid  only  one  bushel. 
Therefore,  there  was  a  gradation  in  the  poll  tax. 

The  amount  of  the  poll  tax  in  the  present  dynasty  has 
varied  to  a  great  extent.  The  smallest  amount  was  .001 
tael  of  silver  for  one  person,  and  the  greatest  amount  8.7786 
taels.  However,  since  the  total  amount  of  the  poll  tax  of 
the  empire  was  combined  with  the  land  tax  (2263-2280 
A.  K.  or  1712-1729  A.  D.)  China  has  had  no  poll  tax. 

IV.    FAMILY    TAX 

Since  the  Han  dynasty  there  has  been  the  "door  tax,"  a 
tax  upon  the  family.     It  was  connected  with,  and  similar  to. 

^General  Research,  chs.  x,  xi. 


DIRECT  TAXES  67 1 

the  mouth  tax.  But  this  tax  under  the  Han  dynasty  was 
not  heavy,  the  annual  rate  being  two  hundred  copper  coins 
for  each  family.* 

The  increase  of  the  door  tax  began  in  the  Wei  dynasty 
In  755  A.  K.  (204  A.  D.)  Tsao  Tsao  made  a  law  that  each 
family  should  pay  annually  two  rolls  of  silk  and  two  catties 
of  floss-silk. 

After  831  A.  K.  (280  A.  D.),  Tsin  \Vu  Ti  regulated  the 
door  tax  as  follows :  A  family  consisting  of  an  adult  man 
(from  sixteen  to  sixty)  paid  three  rolls  of  silk  and  three 
catties  of  floss-silk  annually.  A  family  consisting  of  an  adult 
woman  or  a  man  of  the  secondar}^  adult  class  (from  thir- 
teen to  fifteen  or  from  sixty-one  to  sixty-five)  paid  half  this 
amount.  In  the  prefectures  along  the  boundaries,  a  family 
sometimes  paid  only  two-thirds  of  this  amount;  in  the  re- 
gions remote  from  the  capital,  only  one-third.^ 

The  door  tax  or  the  family  tax  of  the  Tsin  dynasty  seemed 
to  include  the  land  tax.  Hence,  it  was  heavier  than  that  of 
the  Han  dynasty.  But,  since  there  was  a  distribution  of 
public  land."'  there  was  no  family  that  held  no  land.  There- 
fore, the  family  tax  could  be  required.  Moreover,  there 
was  no  poll  tax  upon  the  individual  person. 

The  gradation  of  the  family  tax  began  in  i  loi  A.  K.  (550 
A.  D.).  Wen-hsiian  Ti  of  the  Northern  Ch'i  dynasty  first 
divided  the  families  into  nine  classes.  The  rich  paid  their 
money,  and  the  poor  contributed  their  labor.*  Hence,  the 
character  of  the  family  tax  began  to  change  to  that  of  a 
property  tax. 

The  family  tax  of  the  Viian  dynasty  was  heavy.  One 
family   paid   one  catty   and   6tW   taels   of   silk,   and   five 

*  Historical  Record,  ch.  cxxix. 

*  History  of  Tsin,  ch.  xxvi.  ■  Cf.  supra,  p.  509. 

*  History  of  Sui.  ch.  xxiv. 


(y'j2 


THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 


taels  of  silver.  This  was  the  standard,  and  the  dif- 
ferent grades  of  family  paid  different  amounts  less  than 
this  standard.  It  was  really  a  property  tax.  Besides  the 
family  txx,  there  was  also  a  poll  tax,  three  bushels  of  rice.^ 

In  the  present  dynasty  there  is  no  family  tax. 

Our  conclusion  is,  that  when  the  wealth  of  the  people  is 
equal,  the  family  tax  upon  the  family  as  a  whole  is  justifi- 
able, because  it  includes  the  income  made  by  the  housewife. 
Such  is  the  case  of  ground  tax  or  the  exaction  of  cloth  and 
silk  mentioned  by  Confucius  and  Mencius.^  But,  when 
wealth  is  not  equally  distributed,  there  should  be  no  family 
tax.  Therefore,  the  family  tax  has  been  changed  to  the 
property  tax  since  the  middle  part  of  Tang  dynasty. 

V.    GENERAL    PROPERTY    TAX 

In  69  A.  K.  (483  B.  C.)  Lu  began  to  establish  a  property 
tax,  basing  it  upon  the  ratio  of  the  land  tax.  For  instance, 
the  land  tax  was  formerly  one-tenth  of  its  produce,  but  it 
was  now  doubled,  the  second  one-tenth  being  the  tax  upon 
general  property.  It  was  the  first  time  that  the  general 
property  tax  was  invented,  but  it  excluded  land.  Con- 
fucius condemned  this  new  tax,  because  it  was  simply  an 
addition  to  the  land  tax.^ 

In  570  A.  K.  (19  A.  D.)  Wang  Mang  taxed  the  wealth 
of  both  the  officials  and  the  people  at  the  rate  of  one- 
thirtieth.  This  was  the  first  time  that  the  general  property 
tax  was  levied  throughout  the  whole  empire.* 

In  1320  A.  K.  (769  A.  D.)  Tang  Tai  Tsung  regulated 
the  family  tax  as  follows:    All  the  families,  either  of  the 

^  Continuation  of  the  General  Research,  ch.  xvi. 

2  C/.  supra,  pp.  634-5. 

'  Cf.  Classics,  vol.  v,  pt.  ii,  p.  826. 

*  History  of  Han,  ch.  xcix. 


DIRECT  TAXES  673 

people  or  of  the  princes,  were  classified  into  nine  classes,  and 
were  required  to  pay  their  taxes  in  money.  Each  family  of 
the  first  class  paid  four  thousand  copper  coins ;  each  of  the 
second,  three  thousand  five  hundred ;  each  of  the  third, 
three  thousand ;  each  of  the  fourth,  two  thousand  five  hun- 
dred ;  each  of  the  fifth,  two  thousand ;  each  of  the  sixth, 
one  thousand  five  hundred ;  each  of  the  seventh,  one  thou- 
sand ;  each  of  the  eighth,  seven  hundred ;  and  each  of  the 
ninth,  five  hundred.  The  officials  were  classified  according 
to  their  nine  ranks  in  correspondence  with  these  nine  classes. 
If  one  family  had  several  officials  holding  their  position  in 
different  places,  each  of  them  paid  his  tax  in  his  place  ac- 
cording to  his  rank.  Those  people  who  had  hotels,  firms^ 
or  factories  were  raised  two  grades  above  their  proper  class 
for  purposes  of  taxation.  The  families  of  farmers  liv- 
ing out  of  their  native  districts  were  regarded  as  the  seventh 
class;  and  those  of  temporary  residents  as  the  eighth  class. 
All  journeymen  and  boarders  were  classified  under  either 
the  eighth  or  the  ninth  classes  according  to  their  in- 
come. The  farms  situated  in  different  places  but  owned 
by  one  person  or  one  family  were  separately  taxed  in  the 
respective  localities.  The  soldiers,  during  their  service,  had 
the  special  privilege  of  being  classified  under  the  ninth  class. ^ 

This  was  a  combination  of  general  property  tax  and  in- 
come tax.  But  the  chief  importance  was  still  laid  upon  the 
land,  except  the  salaries  of  the  officials  and  the  business  of 
the  merchants.  This  tax  was  changed  in  1331  A.  K.  (780 
A.  D.).  when  the  system  of  summer  and  autumn  taxes  was 
established. 

The  "  forced-labor  emancipation  law  "  of  Wang  An-shih, 
established  in  1621  A.  K.  ( 1070  A.  D.),  was  really  a  general 
property  tax.     Its  details  were  as   follows:    The  families 

•  Old  History  of  Tang,  ch.   xlvi'i. 


6^4       ^^^  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

who  paid  money  for  the  emancipation  of  forced  labor  or 
for  the  aid  of  emancipation  were  classified  into  five  grades 
according  to  their  real  and  personal  property.  They  con- 
tributed this  money  twice  a  year,  in  summer  and  autumn, 
according  to  their  grade.  The  families  of  the  country  from 
the  fourth  class  down,  and  those  of  the  cities  from  the  sixth 
class  down,  were  exempted.^  When  they  held  property  in 
two  districts,  the  higher  grades  paid  money  to  each  district, 
and  the  ordinary  grade  paid  it  to  one  district  only,  including 
its  property  in  any  other  district.  Those  families  which 
divided  up  their  possession  were  classified  into  new  grades 
according  to  the  division  of  their  property.  The  families  of 
officials,  those  consisting  of  only  women  or  minors,  and  the 
monasteries,  paid  half  the  amount.  All  the  money  was  used 
to  hire  those  whose  family  paid  taxes,  from  the  third  class 
up,  for  the  execution  of  public  labor.  The  amount  of  wages 
was  regulated  according  to  the  amount  of  work.  For  ex- 
ample, the  number  of  families  in  the  district  of  K'aifung 
was  over  22,600,  and  the  annual  contribution  of  this  money 
amounted  to  12,900  strings.  Ten  thousand  and  two  hun- 
dred strings  were  used  for  wages,  and  the  remainder,  2,700 
strings,  was  reserved  to  make  good  any  deficit  which  might 
occur  during  a  bad  year. 

All  the  families  which  formerly  served  in  public  labor 
paid  money  according  to  their  grade;  this  was  called  **  the 
forced-labor  emancipation  money."  All  the  families  of 
officials,  women,  single  men,  bonzes,  etc.,  who  were  for- 
merly exempted  from  the  public  labor,  were  required  to  pay 
money ;  this  was  called  "  the  forced-labor  emancipation  aid 
money."  This  tax  was  rated  according  to  the  estimated 
amount  of  wages  needed  in  each  district,  the  inhabitants  of 
which  were  required  to  make  the  assessed  amount  good,  in 

^  We  should  remember  that,  before  this  law  was  passed  the  fam- 
ilies were  classified  into  nine  classes  according  to  their  wealth. 


DIRECT  TAXES  675 

accordance  with  the  grade  of  their  families.  Besides  the 
fixed  amount,  an  extra  charge  of  twenty  per  cent  was  collected 
to  provide  against  such  contingencies  as  years  of  famine 
and  inundations,  when  the  people  might  be  deprived  of  all 
means  of  paying  taxes.  This  charge  was  kept  as  a  reserve 
fund,  which  would  enable  the  government  to  remit  this  an- 
nual impost  in  necessitous  times. 

The  forced-labor  emancipation  law  was  good,  but  it  en- 
countered much  opposition.  In  the  first  place,  it  created 
a  new  tax  paid  in  money.  In  the  second  place,  it  taxed  all 
the  higher  classes  which  were  formerly  freed  from  forced 
labor.  Since  the  common  people  got  the  real  benefit  from 
the  emancipation,  the  higher  classes  who  especially  suffered 
by  this  tax  made  a  loud  outcry.  But  both  Sung  Shen  Tsung 
and  Wang  An-shih  were  strong  enough  to  maintain  this 
law.  Shen  Tsung  said  :  *'  This  change  of  institution  is,  in- 
deed, not  welcomed  by  most  of  the  officials:  but  what  is 
the  inconvenience  to  the  people?"  This  law  meant  a  social 
revolution  for  China — the  higher  classes  paid  more  taxes, 
and  the  lower  classes  were  not  only  emancipated  from  forced 
labor,  but  also  freed  from  the  general  property  tax. 

This  tax  was  levied  upon  the  five  grades  of  family. 
Such  classification  was  based  either  on  the  amount  of  the 
land  tax  which  the  family  paid,  or  on  the  acreage  of  land, 
or  on  the  accumulation  of  cash,  or  on  the  amount  of  rent 
received.  Since  it  was  necessary  that  hired  labor  be 
substituted  for  forced  labor,  and  that  the  hired  labor  be  paid 
by  some  means,  this  tax  was  justifiable.  It  brought  in  large 
revenues  to  the  government.  Therefore,  besides  paying 
wages  to  hired  labor,  it  was  also  used  for  the  salaries  of 
government  clerks  and  for  the  famine-relief  fund. 

However,  this  tax  had  two  defects.  One  was  that  the 
land  was  subject  to  double  taxation.  The  other  was  that 
the  law  ought  not  to  have  required  at  all  the  extra  charge, 


676       THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

which  was  reduced  in   1645  -^-   K.    (1094  A.   D.)    to  ten 
per  cent. 

In  1625  A.  K.  (1074  A.  D.),  after  Wang  An-shih  was 
dismissed,  Lii  Hui-ch'ing,  formerly  a  personal  friend  of 
Wang,  devised  "  the  self-proving  law  "  to  make  the  forced- 
labor  emancipation  law  effective.  The  government  deter- 
mined the  average  prices  of  all  real  estate,  personal  property 
and  live-stock.  Then  it  let  the  people  assess  themselves  ac- 
cording to  the  aggregate  value  of  their  property.  The 
houses  were  classified  according  to  whether  they  had  in- 
come or  not.  Five  units  of  stored-up  money  were  equal  to 
one  of  income-making  money.  Anyone  who  concealed  his 
property  was  liable  to  be  informed  against.  If  the  informa- 
tion proved  true,  a  third  of  the  value  of  the  concealed  prop- 
erty was  paid  to  the  informer  as  a  reward.  A  schedule  of 
taxable  property  to  be  returned  in  the  roll  was  issued  to 
every  house,  and  the  magistrate  of  each  district  received 
and  registered  it.  According  to  the  prices  of  their  property 
five  classes  of  families  were  distinguished.  Therefore  the 
total  amount  of  the  wealth  of  an  entire  district  could  be 
known.  Judging  by  the  original  amount  of  the  '^  forced- 
labor  emancipation  money  "  of  the  whole  district,  the  gov- 
ernment decided  how  much  each  should  pay. 

This  law  imposed  a  tax  upon  property  which  brought 
in  income,  consumption  goods  being  exempted.  But  the 
difficulty  was  encountered  of  distinguishing  between  goods 
for  consumption  and  goods  for  production,  because  the 
products  of  agriculture  and  industry  might  be  used  for 
either  purpose.  Moreover,  a  worse  thing  was  the  induce- 
ment given  to  informations.  Therefore,  when  Wang  An- 
shih  came  back  to  the  government,  this  law  was  abolished 
(1626  A.  K.  or  1075  A.  D.),  while  the  "  forced-labor  eman- 
cipation law  "  remained  practically  the  same  throughout  the 
Sung  dynasty/ 

*  General  Research,  chs.  xii,  "iii, 


DIRECT  TAXES  677 

The  general  property  tax  of  the  Kin  dynasty  was  like 
this:  All  lands,  gardens,  houses,  carriages,  live-stock, 
plants  and  money,  were  counted  as  property,  and  the  tax 
was  levied  upon  them  according  to  their  quantity.  This 
was  a  universal  tax,  none  being  exempted.  But,  since  the 
property-owner  had  paid  the  land  tax  beside  this,  it  involved 
double  taxation  so  far  as  land  was  concerned.  In  1746 
A.  K.  (1195  A.  D.)  the  total  amount  of  this  tax  was 
2,604,742  strings.^ 

After  the  Kin  dynasty  there  was  no  general  property  tax, 
except  in  the  form  of  the  family  tax.  During  the  present 
dynasty  there  is  neither  general  property  tax  nor  family  tax 

VI.    HOUSE    TAX 

According  to  Confucius,  there  is  no  separate  tax  levied 
upon  the  house  itself,  except  the  ground  tax.^  But,  during 
the  Chou  dynasty,  there  was  the  house  tax.  Besides  the  tax 
on  the  shops,  factories,  warehouses  and  residences  of  the 
commercial  districts,  mentioned  in  the  Official  System  of 
Chou,^  Kuan  Tzu  says:  "  The  rich  families  who  build  their 
beautiful  houses  pay  a  large  tax,  while  the  ordinary  families 
who  make  the  common  houses  pay  a  small  tax.* 

However,  in  later  history,  there  is  only  one  instance  in 
which  the  house  tax  was  levied  upon  all  kinds  of  buildings. 
In  1334  A.  K.  (783  A.  D)  Tang  Te  Tsung  divided  the 
houses  into  three  classes.  The  tax  for  the  first  class  was 
two  thousand  copper  coins ;  that  for  the  second  class,  one 
thousand :  and  that  for  the  lowest  class,  five  hundred.  He 
who  dared  to  conceal  one  house  was  beaten  with  the  heavy 
bamboo  sixty  times,  and  the  informer  was  rewarded  with 

'  Continuation  of  the  General  Research,  chs.  xiii,  xv. 
2C/.  supra,  pp.  634-5. 
»Ch.  XV. 
*  }ik.  Ixxiv. 


678 


THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 


fifty  thousand  coins,  paid  by  the  transgressor.  But  this  tax 
was  aboHshed  in  the  following  year/ 

In  the  present  dynasty,  since  2452  A.  K.  (1901  A.  D.), 
the  provincial  governments  have  tried  to  impose  a  universal 
tax  upon  all  houses.  But  they  succeed  only  in  the  cities, 
and  fail  to  reach  the  houses  in  the  country  districts  because 
the  people  do  not  want  to  pay  this  new  tax. 

Therefore,  our  conclusion  is  that  China  never  has  had  a 
special  house  tax  universally  imposed  upon  the  houses  of  the 
whole  empire.  Kuan  Tzu  may  have  taxed  the  houses  in  the 
country  districts,  but  his  state  was  only  a  feudal  state.  This 
is  the  difference  between  the  administration  of  a  feudal  state 
and  that  of  a  large  empire.  Although  the  general  property 
tax  of  different  dynasties  did  include  the  tax  on  houses,  it 
was  not  a  special  house  tax,  but  a  general  property  tax. 

VII.    INCOME    TAX 

Every  tax  finally  falls  upon  income.  According  to  Con- 
fucius, there  is  no  objection  to  an  income  tax,  especially 
a  tax  on  the  monopolistic  profits  of  merchants.^  The  in- 
come tax  began  in  the  Chou  dynasty,  and  it  took  the  form 
of  taxing  profits.  According  to  the  Official  System  of 
Chou,  the  remainder  of  the  government  goods  which  were 
not  used  up  by  the  government  itself  were  sold  to  the  mer- 
chants, and  their  profits  were  taxed  for  the  gifts  of  the 
emperor." 

According  to  the  law  of  the  Han  dynasty,  all  those  who 
had  to  pay  income  tax  were  to  make  a  self-assessment  in 
accordance  with  their  property.  It  was  made  by  the  head 
of  the  family  himself.    If  the  assessment  was  not  true,  or  if 

^  New  History  of  Tang,  ch.  Hi.    This  tax,  we  might  suppose,  would 
have  reached  only  the  houses  in  the  cities. 
2  Cf.  supra,  pp.  541-2. 
'  Chs.  ii,  vi. 


DIRECT  TAXES  679 

it  was  not  written  down  by  the  head  of  the  family  himself, 
the  fine  was  two  catties  of  gold,  and,  moreover,  the  un- 
assessed  property  and  its  income  were  confiscated.^  Since 
this  law  is  not  well  known,  we  may  take  two  cases  to  show 
its  effects.  In  436  A.  K.  (116  B.  C.)  Marquis  P'ang-kuang 
was  deprived  of  his  feudal  estate  because  he  did  not  assess 
the  income  which  he  derived  from  a  loan.  In  471  A.  K.  (81 
B.  C),  when  the  government  abolished  the  monopoly  of 
liquors,  the  people  were  allowed  to  distill  spirits  on  con- 
flition  that  they  should  pay  the  income  tax  according  to  law." 
Therefore,  the  income  tax  was  well  established  in  the  Han 
dynasty. 

Wang  Mang  levied  an  income  tax  upon  every  one.  In 
561  A.  K.  (10  A.  D.)  he  made  a  law  that  all  hunters,  fish- 
ers, foresters,  miners,  shepherds,  weavers,  tailors,  mechan- 
ics, physicians,  witches,  fortune-tellers,  priests,  and  all  other 
kinds  of  professional  men  and  business  men  living  in  shops, 
residences  and  hotels,  were  required  to  report  themselves 
and  their  business  to  the  magistrate  of  the  district  where 
they  lived.  After  deducting  their  expenses,  they  should 
turn  over  one-tenth  of  their  net  income  to  the  government. 
Those  who  did  not  report,  or  reported  falsely,  were  pun- 
ished by  the  confiscation  of  their  total  production.^  There 
was  no  exemption,*  nor  differentiation,  nor  graduation. 
Therefore,  the  people  suffered  a  great  deal.  Yet  there  was 
a  good  point  about  this  tax,  that  is,  that  it  was  not  on 
gross,  but  on  net  income. 

*  History  of  Han,  ch.  vii   (commentary). 
'  Ibid.,  chs.  XV,  vii. 

*  Ibid.,  ch.  xxiv. 

*  Since  Wang  Mang  nationalized  the  land  in  560,  there  was  no  in- 
come derived  from  land.  And  since  he  did  not  give  salaries  to  officials 
until  567  (even  at  that  time  officials  received  no  true  salaries),  there 
were  no  salaries  to  be  taxed. 


68o       THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

In  China  there  is  a  practice  that,  when  the  government 
needs  mone}^  salaries  and  pensions  are  reduced.  This 
is  really  a  tax  on  income,  stopping  it  at  its  source.  Such 
a  practice  began  with  the  Sung  dynasty  of  the  House  of  Liu. 
In  looi  x\.  K.  (450  A.  D.)  the  deduction  from  salaries 
was  one-third.^ 

In  1333  A.  K.  (782  A.  D.)  the  Tang  dynasty  reduced 
salaries  in  this  way :  The  amount  of  monthly  salaries  above 
one  hundred  strings  was  reduced  by  one-third ;  above  eighty 
strings,  by  one-fifth.  The  reduction  of  the  lower  salaries 
was  made  in  a  similar  way.  But  the  salaries  which  were 
under  thirty  strings  were  not  reduced.  In  1335  A.  K. 
salaries  were  paid  according  to  their  full  amount.^  Such  a 
reduction  of  salaries  had  two  good  points :  a  progressive 
tax  upon  large  salaries,  and  an  exemption  of  small  salaries. 

In  1673  ^^-  K.  (1122  A.  D.)  the  Southern  Sung  dynasty 
taxed  the  salaries  of  officials  at  one  per  cent.  Gradually 
this  rate  was  raised  to  5.6  per  cent  in  1716  A.  K.  (1165 
A:  D.).  Ma  Tuan-lin  criticized  this  practice  on  the  ground 
that  the  government  might  abolish  some  unimportant  offices 
or  reduce  salaries  openly,  but  that  it  should  not  keep  back 
part  of  what  it  had  promised  to  pay.^  His  theory  is  true. 
But,  if  there  were  a  universal  income  tax,  there  would  be 
no  objection  to  proportional  reduction  of  salaries. 

At  the  present  day,  it  is  the  practice  in  Kuangtung  for 
the  people  themselves  to  tax  their  houses  one  month's  rent 
for  local  purposes.  One-half  of  this  amount  is  paid  out  of 
the  rent,  retained  by  the  tenant,  and  the  other  half  is  con- 
tributed by  the  tenant  himself.  Such  a  practice  prevails  in 
the  cities.  It  is  really  an  income  tax  upon  two  elements, 
rent  and  profit.  At  present,  the  provincial  government  taxes 
the  houses  in  the  same  way. 

^  History  of  Sung,  ch.  v. 

^  General  Research,  ch.  Ixv.  '  Ibid.,  ch.  xix. 


DIRECT  TAXES  68 1 

VIII.    INHERITANCE    TAX 

In  the  kingdom  of  Latter  Shu  ( 1458-1 516  A.  K.  or  907- 
965  A.  D.j,  when  people  married,  their  dowries  were 
assessed  and  taxed.  This  was  the  first  time  that  the  dowr) 
tax  occurred  in  hist()r)\  But  it  was  abolished  in  1524  A.  K. 
by  Sung  T*ai  Tsu. 

The  true  inheritance  tax  began  in  1670  (  1 1 19  A.  D. ).  All 
the  testaments,  or  bequests  to  daughters,  were  required  to 
be  stamped  with  the  official  seal  and  to  pay  a  tax.  But  this 
tax  was  abolished  after  a  short  time.* 

According  to  the  stamp-tax  act  of  2458  A.  K.  (1907 
.\.  D.),  every  testament  was  required  to  be  pasted  with  a 
stamp  of  one  thousand  copper  coins.  But  this  act  has  not 
been  universally  enforced. 

IX.    PUBLIC    DEBT 

Although  public  debt  is  not  a  tax  in  name,  it  is  a  tax  in 
fact.  Ma  Tuan-lin  has  put  it  under  the  head  of  miscella- 
neous taxes.  It  began  with  the  Sung  dynasty  of  the  House 
of  Liu.  In  looi  A.  K.  (450  A.  D.),  when  national 
defense  was  im])ortant.  the  princes,  princesses  and 
officials  mostly  gave  voluntary  contributions  to  help  the 
state.  Among  the  rich  people,  some  oft'ered  several  tens  of 
millions.  Then  a  system  of  public  debt  was  introduced : 
one-fourth  of  the  wealth  of  those  people  who  had  five  hun- 
dred thousands,  and  of  those  monks  and  nuns  who  possessed 
two  hundred  thousands,  was  borrowed  by  the  state.  If  their 
wealth  was  over  these  amounts,  it  was  borrowed  at  the 
same  rate.  The  government  promised  that,  when  the  war 
was  over,  the  debt  should  be  immediately  paid  off." 

When  Tang  Su  Tsung  came  to  the  throne  ( 1307  A.  K.  or 
756  A.  D.),  the  government  could  not  get  revenue  on  ac- 

^  (iCHcral  Research,  ch.  xiv.  ^/lnd.,ch.   xix. 


682       THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

count  of  a  great  rebellion.  Hence  he  borrowed  money 
from  the  southern  people,  taking  away  twenty  per  cent  of 
their  wealth.  It  was  called  "  the  borrowing  at  percentage," 
and  it  was  really  a  forced  loan.  For  the  same  reason, 
necessary  military  expenditures,  Tang  Te  Tsung  issued  the 
ordinance  of  "  borrowing  from  the  merchants  "  (1333  A.  K. 
or  782  A.  D.).  It  did  great  harm  to  the  people,  and,  more- 
over, the  total  collection  in  the  capital  was  only  two  million 
strings.^ 

Under  the  present  dynasty,  a  public  debt  has  been  created 
several  different  times.  In  2445  A.  K.  (1894  A.  D.),  on 
account  of  the  war  with  Japan,  the  government  borrowed 
ten  million  taels  of  silver  from  the  merchants.  In  2449 
A.  K.  ( 1898  A.  D. ) ,  in  conforming  to  the  proposal  of  Huang 
Ssii-yung,  the  government  tried  to  borrow  one  hundred  mil- 
lion taels,  but  the  actual  collection  was  only  about  four  mil- 
lion taels.  These  two  sums  were  really  forced  money. 
Yiian  Shih-kai  tried  to  establish  a  public  debt  of  the  modern 
type  in  2456  A.  K.  (1905  A.  D.),  but  did  not  succeed. 
Besides  borrowing  one  million  eight  hundred  thousand  taels 
by  force,  he  secretly  borrowed  from  The  Yokohama  Specie 
Bank  three  million  taels  in  order  to  carry  out  his  plans. 
Many  other  officials  tried  to  imitate  his  scheme,  but  nobody 
was  successful.  In  short,  China  cannot  establish  a  domestic 
debt  until  she  shall  have  a  constitutional  government.^ 

*  New  History  of  Tang,  chs.  li,  Hi. 

2  The  foreign  debt  began  in  2425  A.  K.  (1874  A.  D.),  when  a  loan  of 
£627,675,  bearing  8  per  cent  interest,  was  contracted  through  the  Hong- 
kong and  Shanghai  Bank.  After  the  war  with  Japan  and  the  Boxers' 
movement,  the  foreign  debt  was  largely  increased.  During  the  last 
few  years,  foreign  capital  has  been  borrowed  in  large  amounts  for  the 
development  of  industries  and  other  reforms.  Economically,  there  is 
no  objection  to  the  foreign  debt,  but  politically,  the  present  govern- 
ment is  not  fitted  to  borrow  foreign  money  at  all. 


CHAPTER  XXXV 

Indirect  Taxes 

Confucius  does  not  like  indirect  taxes.  According  to 
his  vie^v,  there  should  not  be  any  such  taxes  at  all.  This 
opinion  appears  to  be  justified  not  only  by  reason  but 
by  reference  to  the  history  of  taxation  in  China.  During 
the  first  part  of  the  Han  dynasty  (346-422  A.  K.  or  206-130 
B.  C),  the  Sui  dynasty  (1134-1168  A.  K.  or  583-617  A.  D.), 
and  the  first  part  of  theTang  dynasty  (1169-1306  A.  K.  or 
618-755  ^^-  C). )•  there  were  practically  no  indirect  taxes. 
Yet  the  government  was  very  rich,  and  the  people  were  very 
prosperous  at  this  period,  except  during  the  revolution  at 
the  end  of  the  Sui  dynasty  (1162-1173  A.  K.  or  611-622 
A.  D.).  In  later  times,  however,  the  government  has  never 
been  able  to  get  along  without  indirect  taxes.  This  will  ap- 
pear from  the  account  of  the  historical  development  of  the 
indirect  taxes  from  the  Chou  dynasty  to  the  present  day,  to 
which  we  will  now  proceed. 

I.    CUSTOMS    DUTIES 

Confucius  is  an  extreme  free-trader,  in  regard  to  both  in- 
ternal and  foreign  trade.'  But,  according  to  the  Official 
System  of  Chou,  there  were  three  places  where  commodities 
were  taxed — the  external  custom-house  (liuan),  the  internal 
custom-house  (men),  and  the  market-places  (sliih).  Com- 
modities might  be  taxed  at  only  one  of  these  three  places, 
but  it  was  necessary  to  show  receipts  for  the  taxes  paid  be- 

1  Cf.  supra,  pp.  453-4. 

683 


684       ^^^  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

fore  they  could  pass  any  one  of  them.  When  a  commodity 
was  imported,  a  receipt  was  issued  by  the  external  custom- 
house when  the  import  duty  was  paid,  and  this  was  exam- 
ined on  passing  into  the  internal  custom-house  and 
market.  When  a  commodity  was  exported,  a  receipt  for 
the  export  duty  was  first  issued  by  the  controller  of  the 
market,  and  then  examined  as  it  passed  through  the  internal 
and  external  custom-houses.  The  three  authorities  cooper- 
ated in  order  to  prevent  smuggling.  Therefore,  the  Chou 
dynasty  did  not  allow  free  trade  in  any  commodity.^ 

I.  Customs  Duties  on  Internal  Trade 

After  the  Ch^in  dynasty  had  consolidated  the  feudal  states 
into  a  single  nation,  the  internal  trade  of  China  was  far 
more  important  than  the  foreign  trade.  Therefore,  we  shall 
first  consider  the  inland  customs  of  different  dynasties. 

According  to  history,  from  the  Ch'in  dynasty  to  the  first 
part  of  the  Tsin  dynasty,  customs  duties  did  not  exist. 
Therefore  there  was  free  trade,  internal  as  well  as  external. 

Customs  duties  were  first  revived  by  the  Eastern  Tsin 
dynasty.  From  the  Eastern  Tsin  to  the  Southern  Chen 
(868-1140  A.  K.  or  317-589  A.  D.)  custom-houses  were 
established  along  the  waterways.  Such  commodities  as  fuel, 
charcoal,  fish,  etc.,  were  taxed  at  ten  per  cent. 

Under  the  Sung  dynasty,  the  general  rate  of  commodity 
tax  when  the  commodity  passed  through  inland  customs 
was  two  per  cent  ad  valorem.^ 

In  later  history,  there  was  only  one  period  during  which 
the  Confucian  doctrine  of  absolutely  free  trade  was  realized. 
In  1713  A.  K.  (1162  A.  D.)  Kin  Shih  Tsung  abolished  all 
customs  duties,  and  the  custom-houses  were  ordered  to  in- 

'  Chs.  xiv,  XV. 

'  General  Research,  ch.  xiv. 


INDIRECT  TAXES  685 

spect  passengers  only.     This  reform  was  proposed  by  Chang 
Chung-yen.^ 

The  present  dynasty  has  twenty-six  principal  custom- 
houses of  the  old  type.  They  are  both  inland  and  maritime 
custom-houses.  All  the  sub-stations  established  by  each  of 
them  for  the  collection  of  duties  and  for  inspection  and 
search  are  confined  to  certain  places.  The  general  rate  of 
duties  is  three  per  cent  ad  valorem.  Many  custom-houses 
require  a  customs  fee,  one-tenth  of  the  duty  itself,  for 
administrative  expenses.  If  there  is  no  fee  required,  the 
expenses  are  defrayed  by  "  the  additional  amount."  The 
amount  of  collection  of  each  custom-house  is  fixed,  and  it 
is  divided  into  two  parts,  ''  the  regular  amount  "  and  "  the 
additional  amount."  When  the  duties  collected  fall  below 
these  fixed  amounts,  the  director  is  responsible  for  the  defi- 
cit; when  they  are  above  these  limits,  he  should  send  to  the 
government  the  actual  amount  collected.* 

(a)    Tax  on  Ships 

Han  Wu  Ti  began  to  tax  the  ships  of  merchants  (423 
A.  K.  or  129  B.  C).  A  ship  over  fifty  feet  long  paid  one 
hundred  and  twenty  coins  annually.  It  was  simply  a  tax 
upon  the  instrument  of  trade.  During  the  Five  Dynasties 
(1458-15 10  A.  K.  or  907-959  A.  D.)  there  was  a  tax  on 
ferry-boats.  It  was  abolished  by  Sung  T'ai  Tsu  (1511), 
but  revived  in  later  times  (at  least  in  1622).  In  1630  A.  K. 
(1079  A.  D.)  the  government  established  public  ware- 
houses and  transporter!  merchants'  goods  with  government 
ships,  in  order  to  charge  a  tax  for  the  ships.  Yet  pri- 
vate ships  were  freed  from  tax.  It  was  only  during  the 
Southern    Sung   dynasty    that    ships    were    illegally    taxed 

'  Continuation  of  the  General  Research,  ch.  xviii. 

'The  Institutes  of  the  Ts'iug  Dynasty   (Ta  Ts'ing  Hui  Tien),  chs. 
xxiii,  Iviii,  Ix.     General  Research  of  the  Present  Dynasty,  ch.  v. 


686       THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

by  local  officials.  The  regular  tax  upon  ships,  as 
a  tonnage  duty  collected  by  special  officers,  really  began  at 
the  end  of  the  Yiian  dynasty,  but  was  repealed  after 
three  years  (1888-1891  A.  K.  or  1337-1340  A.  D.). 

The  Ming  dynasty  established  seven  inland  custom-houses 
for  the  collection  of  tonnage  duties  in  paper  money  in  1980 

A.  K.  (1429  A.  D.).  In  2076  A.  K.  (1525  A.  D.)  their 
number  was  twelve.  All  of  them  collected  only  tonnage 
duties  from  the  ships,  with  the  exception  that  two  collected 
the  commodity  tax  also.  From  2031  to  2080  A.  K.  (1480- 
1529  A.  D.)  all  the  "paper-money  custom-houses"  grad- 
ually substituted  for  the  collection  of  paper  money  the  col- 
lection of  silver.  In  the  present  dynasty,  tonnage  duties 
still  exist. 

(b)    Tax  on  Passengers 

The  most  objectionable  form  of  taxation  in  Chinese  his- 
tory was  the  tax  upon  passengers.     In  451   A.   K.    (loi 

B.  C.)  Han  Wu  Ti  taxed  the  passengers  in  Wukuan,  an  im- 
portant pass,  for  the  expenses  of  its  keepers.  In  the  North- 
ern Wei  dynasty  (1077  A.  K.  or  526  A.  D.)  and  the  North- 
ern Chou  dynasty  (1131  A.  K.  or  580  A.  D.),  people 
coming  to  the  market-places  were  taxed,  one  coin  for  one 
person;  but  such  tax  was  abolished  in  1132.  Fortunately, 
these  were  the  only  cases. 

(c)  Likin 
Besides  the  customs  duty,  there  is  the  likin,  or  contribu- 
tion of  one-thousandth.  It  is  a  tax  on  commodities  when 
they  pass  through  any  likin  barrier.  In  2404  A.  K.  (1853 
A.  D.),  when  the  T'ai-p'ing  rebels  captured  Nanking,  the 
sources  of  revenue  for  military  expenditures  were  cut  off. 
Therefore,  Lei  Yi-hsien,  a  military  officer,  created  the  likin 
tax.  At  the  beginning,  it  was  a  voluntary  contribution 
from  the  merchants,  and  the  government  promised  that  it 


INDIRECT  TAXES  687 

should  be  abolished  as  soon  as  the  rebellion  should  be  put 
down.  This  tax  was  an  important  factor  in  preserving  the 
present  dynasty.  But  the  government  has  not  kept  its 
promise,  and  the  tax  has  now  become  an  intolerable  burden. 
Its  legal  rates  vary  in  different  provinces — some  are  one  or 
two  per  cent,  and  some  are  five  or  nine  per  cent.  Accord- 
ing to  the  budget  of  this  year  (2462  A.  K.),  the  total  sum 
of  likin  is  43,187,907  taels.'  It  will  be  abolished  in  the 
near  future. 

2.  Customs  Duties  on  Imports  and  Exports 

Before  the  Sung  dynasty,  the  import  duty  levied  on  for- 
eign goods  was  unknown.  In  1522  A.  K.  (971  A.  D. )  the 
first  maritime  custom-house  was  established  in  Canton.  Its 
purpose  at  first  appears  to  have  been  regulation  rather  than 
revenue.  The  rate  of  customs  duty  was  first  made  twenty 
per  cent  in  1542  A.  K.  (991  A.  D. ).  During  the  reign  of 
Sung  Jen  Tsung  (i  574-1614  A.  K.  or  1023-1063  A.  D.), 
three  maritime  custom-houses  were  established  in  different 
places — Hangchow,  Ningpo  and  Canton.  Ten  per  cent  of 
commodities  was  taken  as  import  duties,  and  the  govern- 
ment bought  thirty  per  cent  at  reduced  prices.  In  1698 
A.  K.  (i  147  A.  D.)  the  annual  revenue,  raised  from  both  the 
duties  and  the  purchases,  amounted  to  two  million  strings. 
In  1715  A.  K.  (1164  A.  D.)  the  system  of  government  pur- 
chase was  abolished,  and  the  rate  of  duty  was  fixed  at  ten 
per  cent.^ 

The  tariff  of  the  Yiian  dynasty  was  changed  several  times. 
In  1828  A.  K.  (1277  A.  D.)  general  commodities  were  taxed 
at  the  rate  of  one-tenth,  and  coarse  commodities  one- 
fifteenth.     \  distinction  was  drawn  between  native  goods 

'  This  sum  is  mixed  up  with  other  minor  taxes. 
'  General  Research,  ch.  xx. 


688       THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

and  foreign  goods.  The  former  paid  duties  only  half  as 
high  as  the  latter.  This  was  the  germ  of  protection.  In 
1834  A.  K.  (1283  A.  D.)  the  tariff  was  changed  so  that  fine 
goods  paid  one-tenth,  and  coarse  goods  five-tenths.  In  1843 
A.  K.  (1292  A.  D.)  the  rates  of  tax  on  the  sale  of  imported 
goods  which  had  paid  duties  and  were  sold  in  the  pro- 
vince where  the  custom-house  was  located,  were  fixed : 
fine  goods  paid  one-twenty-fifth,  and  coarse  goods  one- 
thirtieth,  and  were  exempt  from  other  taxes.  When  the 
merchants  bought  commodities  at  the  custom-houses,  the 
commodities  were  not  taxed  twice;  and  they  simply  paid  the 
tax  at  the  place  where  they  were  sold.  In  the  following 
year,  the  duties  at  all  maritime  custom-houses  were  regu- 
lated at  the  rate  of  one-thirtieth. 

The  Ming  dynasty  treated  foreigners  liberally,  and 
sometimes  made  foreign  trade  free.  In  1920  A.  K.  (1369 
A.  D.)  a  law  was  enacted  that  foreign  goods  imported  by 
those  who  brought  tribute  should  be  exempted  from  paying 
duties,  but  sixty  per  cent  of  them  should  be  bought  by  the 
government  at  a  low  price.  The  object  of  this  policy  was 
to  show  generosity  to  foreigners ;  it  was  more  political  than 
economic.  Generally,  imported  commodities  were  required 
to  pay  duties.^ 

Under  the  present  dynasty,  a  revolutionary  change  in 
Chinese  policy  was  brought  about  by  the  Opium  War.  Be- 
fore the  war  foreign  trade  was  of  the  old  type,  and  since 
the  war  it  has  been  of  a  new  one.  We  may  first  take  up 
the  old  type.  In  2236  A.  K.  (1685  A.  D.),  all  foreign 
ships  which  brought  tribute  were  exempted  from  duties. 
During  the  same  year  the  rate  of  tonnage  duty  was  re- 
duced.^    In  2249  A.  K.  (1698  A.  D.)  all  foreign  ships  were 

^Continuation  of  the  General  Research,  ch.  xxvi. 

'  Formerly,    under   the    Ming   dynasty,   the  import    duty  on    foreign 


INDIRECT  TAXES  689 

classified  into  four  classes,  and  the  rates  of  tonnage  duty 
were  reduced  to  1,120,  880,  480  and  320  taels.  Owing  to 
the  difficulty  of  detecting  them  and  assessing  their  value  cor- 
rectly, jewels,  pearls,  precious  stones,  etc.,  were  exempted 
from  import  duty  in  2335  A.  K.  (1784  A.  D.)  by  Kao 
Tsung. 

Rice  brought  into  China  has  not  been  subject  to  duty.  In 
2273  A.  K.  (1722  A.  D. )  the  rice  imported  from  Siam  was 
freed  from  import  duty.  In  2276  A.  K.  her  other  commod- 
ities brought  along  with  rice  were  also  freed.  In  2279  A.  K. 
(1728  A.  D. )  a  general  law  was  enacted  that  rice  and  grain 
might  be  imported  free.  In  2294  A.  K.  a  law  lowering  the 
duties  on  commodities  brought  in  on  foreign  rice-ships  was 
enacted :  When  a  ship  imported  ten  thousand  bushels  of  rice, 
one-half  of  the  duties  on  its  other  commodities  was  taken 
off;  when  it  imported  five  thousand  bushels,  the  exemption 
was  thirty  per  cent.^ 

After  the  Opium  War,  the  character  of  foreign  trade  was 
changed.  In  2394  A.  K.  ( 1843  '^-  ^O  ^^^  ^^^  ports — Can- 
ton, Foochow,  Amoy,  Ningpo  and  Shanghai — were  opened 
to  foreign  trade;  and  since  2405  A.  K.  (1854  A.  D.)  mari- 
time customs  of  the  new  type  have  been  administered  by  for- 
eigners. Hence  there  is  a  distinction  between  the  old  cus- 
toms and  the  new  ones.  The  tariff  is  five  per  cent  ad  va- 
lorem. Even  this  rate  was  not  effective  until  2452  A.  K. 
(igoi  A.  D.).  In  2456  A.  K.  (1905  A.  D.)  the  total  sum 
collected  in  the  new  customs  was  35,1 1 1,004  taels.     If  China 

goods  liad  been  changed  to  the  system  of  taxing  foreign  ships  accord- 
ing to  their  size  (2122  A.  K.  or  1571  A.  D.),  because  the  frauds 
practiced  by  foreigners  were  not  easily  detected.  European  ships  were 
classified  into  nine  grades,  each  paying  a  fixed  amount  of  duty  accord- 
ing to  its  size.  At  a  later  time  in  the  Ming  dynasty,  thirty  per  cent  of 
the  fixed  amount  was  taken  oflf  in  deference  to  the  foreigners'  petitions. 
In  the  same  year  (2236  A.  K.),  twenty  per  cent  more  was  taken  off. 
^General  Research  of  the  Present  Dynasty,  ch.  vi. 


690       THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

will  abolish  likin,  the  foreign  countries  have  agreed  to  pay  a 
surtax  equivalent  to  one  and  one-half  times  the  original  rate, 
which  would  make  the  total  amount  twelve  and  one-half 
per  cent. 

According  to  the  agreement  made  between  China  and 
Great  Britain  in  2409  A.  K.  (1858  A.  D.),  the  following 
goods  were  duty-free :  gold  and  silver  bullion,  foreign  coins, 
flour,  Indian  meal,  sago,  biscuit,  preserved  meats  and  vege- 
tables, cheese,  butter,  confectionery,  foreign  clothing,  jew- 
elry, plated  ware,  perfumery,  soap  of  all  kinds,  charcoal, 
fire-wood,  candles  (foreign),  tobacco  (foreign),  cigars  (for- 
eign), wine,  beer,  spirits,  household  stores,  ships'  stores, 
personal  baggage,  stationery,  carpeting,  druggeting,  cutlery, 
foreign  medicines,  and  glass  and  crystal  ware.  They  paid 
no  import  or  export  duty;  but  if  transported  into  the  in- 
terior, with  the  exception  of  personal  baggage,  gold  and 
silver  bullion,  and  foreign  coins,  they  paid  a  transit  duty  at 
the  rate  of  two  and  one-half  per  cent  ad  valorem.^ 

These  duty-free  goods  began  to  be  liable  for  import  duty 
in  2452  A.  K.  (1901  A.  D.),  the  rate  being  five  per  cent  ad 
valorem.  Yet  foreign  rice,  cereals,  and  flour,  gold  and 
silver,  both  bullion  and  coin,  printed  books,  charts,  maps, 
periodicals  and  newspapers  are  not  liable  to  pay  import 
duty.' 

Until  this  unjust  tariff  has  been  revised,  it  will  be  difficult, 
if  not  impossible,  for  China  to  put  a  special  excise  upon 
native  liquors  and  native  tobacco.  If  she  were  to  do  so,  the 
excise  would  be  not  only  unjust,  but  also  unproductive. 
Unfortunately,  this  is  true  in  regard  to  many  kinds  of  taxes. 
In  fact,  under  the  present  system  foreigners  are  protected 
at  the  expense  of  the  Chinese. 

*  Hertslet's  China  Treaties,  vol.  i,  p.  36. 
^  Ihid.,  p.  170. 


INDIRECT  TAXES  691 

In  regard  to  exports,  they  were  formerly  almost  free. 
Although  there  were  some  regulations  to  forbid  the  expor- 
tation of  certain  goods,  goods  exported  paid  practically 
no  duty,  except  in  a  few  instances.  The  regular  export  duty 
was  first  fixed  in  2393  A.  K.  (1842  A.  D.),  at  about  the  rate 
of  five  per  cent  ad  valorem.  If  China  will  abolish  likin,  she 
may  raise  the  export  duty  to  seven  and  a  half  per  cent. 

Under  the  treaty  of  peace  made  between  China  and  Great 
Britain  in  2409  A.  K.  (1858  A.  D.),  the  tonnage  dues  have 
been  fixed  in  this  way:  "  British  merchant-vessels,  of  more 
than  150  tons  burden,  shall  be  charged  tonnage  dues  at  the 
rate  of  4  mace  per  ton;  if  of  150  tons  and  under,  they  shall 
be  charged  at  the  rate  of  one  mace  per  ton."  ^ 

In  conclusion,  as  her  history  shows,  China  has  practically 
adopted  the  doctrine  of  free  trade  in  her  maritime  customs. 
But,  since  public  expenditures  have  been  increasing  all  the 
time,  China  has  been  obliged  to  get  revenue  from  customs 
duties.  Therefore,  although  she  has  not  adopted  a  pro- 
tective tariff,  she  has  been  compelled  to  maintain  a  tariff 
for  revenue.  But,  whenever  she  has  wanted  to  derive 
revenue  from  her  customs,  her  sovereign  power  has  been 
interfered  with  by  foreign  nations.  This  is  a  great  in- 
justice. It  checks  China's  industrial  development  and  op- 
poses needed  financial  reforms.     It  must  be  done  away  with. 

II.    BUSINESS    TAXES 

I.    Tax  on  Buildings 

According  to  Mencius,  the  buildings  of  merchants  should 
not  be  taxed."  But,  according  to  the  Official  System 
of  Chou,  the  taxes  on  merchants  took  many  forms,  namely, 
a  tax  on  shops,  a  tax  on  open  grounds  upon  which 
those  who  had  no  shops  stood  to  conduct  their  business,  a 

'  Hertslet's  China  Treaties,  vol.  i,  p.  28. 
-  Cf.  infra,  p.  697. 


692       THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

tax  on  residences  and  warehouses,  etc.  These  taxes 
were  mostly  paid  in  money.  But  some  were  paid  in  pro- 
duce. For  example,  the  tax  of  the  butcher  was  collected  in 
the  form  of  skins,  horns,  muscles  and  bones — the  by-products 
of  his  industry  which  were  manufactured  in  the  government 
factories.^ 

In  1077  A.  K.  (526  A.  D.)  the  Northern  Wei  dynasty 
classified  the  buildings  of  the  markets  into  five  grades  for 
the  purpose  of  taxation.  Under  the  Ming  dynasty,  the 
buildings  of  merchants  were  taxed  in  paper  money, 
monthly  or  quarterly,  in  accordance  with  the  kinds  and  the 
size  of  their  business.  In  2303  A.  K.  (1752  A.  D.)  the 
"  firm  tax  "  in  Peking  was  regulated  by  the  present  dynasty, 
as  follows:  Firms  whose  capital  was  large  were  classi- 
fied into  the  first  class,  and  were  required  to  pay  five  taels 
of  silver  annually;  the  middle  class  paid  half  this  amount; 
and  the  lowest  class  was  exempted.  The  magistrates  per- 
sonally inspected  the  firms  every  year  and  classified  them 
according  to  their  actual  condition. 

The  tax  on  water-power  mills  began  in  the  Sung  dy- 
nasty (about  1630  A.  K.  or  1079  A.  D.).  In  2261  A.  K. 
(1710  A.  D.)  the  present  dynasty  taxed  the  water-power 
mills  of  Szechuan  at  the  rate  of  5t^o  taels  of  silver.  This 
was  a  factory  tax. 

2.  Tax  on  Carriages 
The  tax  on  the  carriages  of  merchants  began  with 
Han  Wu  Ti  (423  A.  K.  or  129  B.  C).  In  433  A.  K.  (119 
B.  C.)  the  tax  was  extended  to  the  common  people.  If  not 
an  officer  or  a  soldier,  a  person  was  required  to  pay  one 
hundred  and  twenty  coins  annually  for  the  possession  of  a 
carriage.  But  the  carriage  of  the  merchant  paid  double  this 
rate.^     This  tax  did  not  last  very  long. 

'  Ch.  XV.  2  History  of  Han,  chs.  vi,  xxiv. 


INDIRECT  TAXES 


693 


The  Ming  dynasty  began  to  tax  carriages  for  hire 
(1980  A.  K.  or  1429  A.  D.).  The  tax  was  paid  in  paper 
money. ^  Under  the  present  dynasty,  carriages  have  not 
been  subject  to  taxation  until  recently,  when  a  new  system 
of  police  was  established.     But  this  tax  is  insignificant. 

3.   Tax  on  Money 

In  433  x\.  K.  (119  B.  C),  Han  Wu  Ti  began  to  tax 
reserved  cash  according  to  the  number  of  strings.  All  busi- 
ness men  who  carried  on  manufacturing,  banking,  trade, 
storage  and  transportation  were  required  to  make  a  self- 
assessment  of  their  reserved  cash.  The  rate  of  tax  was  six 
per  cent.  The  cash  of  all  craftsmen  who  made  money 
by  selling  their  products  was  taxed  at  three  per  cent.  One 
who  did  not  assess  or  did  not  tell  the  whole  truth,  was  ban- 
ished to  the  boundaries  for  one  year,  and  his  money  was 
confiscated.  If  there  was  an  informer,  half  of  the  con- 
cealed money  was  given  to  him  as  a  reward.  Hence,  in  435 
A.  K.  (117  B.  C. )  such  informations  were  frequent  over  the 
whole  empire,  and  the  well-to-do  families  were  often  prose- 
cuted. This  tax  applied  to  practically  all  classes,  many 
rich  families  were  destroyed,  and  the  people  were  led  to  care 
only  for  present  consumption  and  to  desist  from  saving. 
In  439  A.  K.  (113  B.  C. )  the  government  lent  the  people 
mares  for  the  making  of  interest  at  ten  per  cent  every  three 
years — that  is,  the  people  returned  ten  mares  and  one  young 
horse  at  the  end  of  three  years.  Since  the  government  ex- 
pected to  get  '*  horse  interest,"  \Vu  Ti  abolished  this  tax 
in  that  year.' 

The  tax  on  reserved  cash  was  a  tax  on  capital,  but  an 
exception    was    made    on    behalf    of    craftsmen.       Their 

*  Continuation  of  the  General  Research,  ch.  xviii. 
'  History  of  I  Ian.  ch.  xxiv. 


694       ^^^^  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

money  was  taxed  at  only  half  the  rate  on  that  of  mer- 
chants. This  was  because  they  depend  upon  their  labor 
more  than  do  merchants,  and  cannot  make  as  much  profits 
as  merchants.  This  was  the  first  time  that  a  tax  was 
levied  directly  on  cash.  The  worst  result  of  it  was  the  en- 
couragement it  gave  to  informers. 

During  the  first  year  of  the  reign  of  Tang  Su  Tsung 
(1307  A.  K.  or  756  A.  D.),  when  the  great  rebellion  broke 
out,  the  provincial  governments  taxed  the  merchants  for 
military  expenses.  Cash  in  excess  of  one  thousand  coins 
was  taxed.  In  1333  A.  K.  (782  A.  D.)  Tang  Te  Tsung 
taxed  merchants'  cash  transported  through  the  internal 
customs,  at  the  rate  of  two  per  cent.^  These  were  the  only 
cases  where  the  money  of  merchants  was  legally  singled 
out  to  be  taxed.  In  other  cases,  money  was  included  in  the 
general  property  tax. 

4.  Tax  on  the  Guilds  as  a  Whole 
During  the  Sung  dynasty,  all  the  different  trades  in  the 
capital  had  guilds.  When  the  government  needed  anything, 
the  guilds  were  responsible  for  supplying  it.  They  fre- 
quently suffered  loss.  Lii  Chia-wen  proposed  to  assess  the 
amount  of  the  income  of  each  guild,  and  make  it  pay  a  tax 
instead  of  supplying  goods.  When  the  government  wanted 
commodities,  it  bought  them  through  the  officials,  and  the 
guilds  were  freed  from  the  obligation  of  supplying  them. 
This  was  called  "  the  emancipated-guild  tax,"  enacted  in 
1624  A.  K.  (1073  A.  D.).  It  was  a  tax  upon  the  guild  as 
a  whole.  Each  trader  had  to  register  in  the  public  office  as 
a  member  of  the  guild  and  to  pay  this  tax  monthly.^ 

^  New  History  of  Tang,  chs.  li,  Hi. 

^  Continuation  of  the  General  Political  History,  edited  by   Pi  Yiian 
(2280-2348,  or  1 729- 1 797  A.  D.),  ch.  Ixix. 


INDIRECT  TAXES  695 

III.    LICENSE    TAXES 

1.  Tax  on  Fishery 

According  to  the  principles  of  Confucius,  the  people 
should  be  allowed  to  fish  in  any  water  without  paying  a  tax. 
Mencius  describes  the  government  of  \Ven  Wang,  saying 
that  he  gave  no  prohibitions  respecting  the  ponds  and  weirs.  ^ 
Indeed,  when  fishing  is  on  a  small  scale  and  conducted  by 
the  poor  for  their  daily  living,  it  should  not  be  taxed  at  all. 

The  tax  on  fishery,  however,  was  an  old  tax.  According 
to  the  Official  System  of  Chou,  its  proceeds  came  to  the 
"  treasury  of  jade  "  for  the  use  of  the  emperor.'  The  state 
of  Ch'i  made  the  sea  the  state  treasury,  and  controlled  fish- 
ery as  a  government  monopoly.^  The  Han  dynasty  had  the 
'*  sea  rent,"  a  tax  upon  fishermen.  During  the  reign  of 
Han  \Vu  Ti  the  government  itself  fished  in  the  sea.  From 
the  Han  dynasty  to  the  Ming  dynasty  there  has  been  a  tax 
levied  upon  rivers,  lakes,  ponds,  etc.,  paid  by  fisher- 
men, although  it  has  been  remitted  or  exempted  many  times. 
The  Ming  dynasty  made  this  tax  prominent,  and  estab- 
lished officers  to  take  charge  of  it,  known  as  the  ho  po  so. 

In  the  present  dynasty,  the  license  to  fish  belongs  in  the 
class  of  miscellaneous  taxes.  Each  of  the  twelve  provinces 
has  a  fixed  amount  of  this  tax.  As  to  the  license  fee,  each 
license  in  Kinchou  (Fungtien)  costs  annually  a  half  tael  of 
silver.  But  each  net  in  Pehtuna  (Kirin)  must  pay  twenty 
taels.* 

2.  Tax  on  Brokers 

This  tax  must  be  a  very  old  one.  but  we  cannot  discover 
its  origin.     It  was  once  abolished  during  the  Yiian  dynasty 

'  Classics,  vol.  ii.  p.   162. 

'  Ch.  iv. 

'  Classics,  vol.  v,  pt.  ii,  p.  683. 

*  Cases  of  the  Institutes  of  the  Ts'ing  Dynasty,  ch.  ccxlv. 


696 


THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 


(1836  A.  K.  or  1285  A.  D.).  Under  the  present  dynasty, 
the  brokers'  Hcense  are  issued  by  the  commissioner  of 
finance  in  each  province,  and  their  number  is  hmited.  When 
any  firm  is  incorporated  for  conducting  the  transfer  of  cer- 
tain goods  from  seller  to  buyer  at  fixed  rates  of  commission, 
it  must  get  a  license.  Such  license  has  three  classes.  Take, 
for  example,  Kiangsi  province.  The  first  class  annually 
paid  three  taels  of  silver;  the  second,  two  taels;  the  lowest, 
one  tael  ( 23 1 1  A.  K.  or  1 760  A.  D. ) .  In  2343  A.  K.  ( 1 792 
A.  D.)  ten  firms  were  established  in  Nanning  (Kuangsi) 
and  each  was  annually  taxed  at  five  taels  of  silver. 

3.  Tax  on  Pawnshops 

In  2203  A.  K.  (1652  A.  D.)  the  license  fee  for  pawn- 
shops established  in  the  provinces  was  fixed  by  the  present 
dynasty  at  five  taels  a  year.^ 

IV.    EXCISE   TAXES 

I.  General  Excise  Taxes  ^ 

We  have  already  learned  that  Confucius  does  not  ap- 
prove of  indirect  taxes,  and  exempts  all  commodities  either 
passing  through  custom-houses  or  sold  in  market-places 
from  taxation.^      We  may  quote  one  more  passage  from 

*  Closely  related  to  the  license  taxes  are  the  incorporation  fees  es- 
tablished by  the  present  dynasty  in  2455  (1904  A.  D.).  All  kinds  of 
business  may  be  incorporated  in  the  Department  of  Agriculture,  In- 
dustry and  Commerce.  The  fees  for  incorporation  vary  from  fifty 
yen  to  three  hundred,  according  either  to  the  number  of  partners  in 
a  partnership,  or  to  the  amount  of  capital  in  a  stock  company.  The 
incorporation  fee  for  the  different  kinds  of  banks  incorporated  in  the 
Department  of  the  Treasury  is  four  taels  of  silver.  It  was  fixed  in  2459 
(1908  A.  D.). 

2  Such  a  term  is  only  approximate,  and  does  not  mean  that  every- 
thing is  subject  to  excise  tax. 

^  Cf.  supra,  p.  634. 


INDIRECT  TAXES  697 

Mencius:  "  If,  in  the  market-places,  a  ruler  simply  establish 
public  warehouses  without  taxing  commodities,  and 
simply  enforce  commercial  regulations  without  taxing 
merchants'  residential  houses,  then  all  the  merchants  of 
the  world  will  be  pleased,  and  wish  to  store  their  goods  in 
his  market-places."  ^  In  another  place  Mencius  declares  that 
a  tax  imposed  either  in  the  custom-house  or  in  the  market- 
place is  as  unjust  as  the  stealing  of  a  neighbor's  chickens.^ 
Therefore,  according  to  the  principles  of  Confucius,  no 
commodity  should  be  taxed. 

As  a  matter  of  fact,  however,  the  tax  on  commodities  is 
very  old.  According  to  the  Official  System  of  Chou,  the 
tax  in  the  market-places  was  suspended  only  during  a  famine 
or  an  epidemic.  Such  a  suspension  was  for  the  purpose  of 
lowering  prices.^ 

In  1 33 1  A.  K.  (780  A.  D.)  the  Tang  dynasty  taxed  the 
commodities  of  merchants  at  the  places  where  they  car- 
ried on  their  business,  the  rate  being  one-thirtieth  ad  va- 
lorem. In  the  following  year,  on  account  of  military  ex- 
penses, this  rate  was  raised  to  one-tenth.* 

In  1509  A.  K.  (958  A.  D.)  the  Latter  Chou  dynasty  taxed 
live-stock  at  three  per  cent  of  the  selling  price.  In  the  Sung 
dynasty  the  general  rate  of  commodity  tax  was  the  same.'^ 

Under  the  Kin  dynasty  the  rates  of  the  commodity  tax 
were  regulated  in  1731  A.  K.  (1180  A.  D.).  The  tax  on 
gold  and  silver  was  one  per  cent,  and  that  on  other  com- 
modities three  per  cent.  Subsequently  the  first  rate  was  in- 
creased to  three  per  cent,  and  the  second  to  four.  In  1758 
A.  K.  (1207  A.  D.)  the  minister  of  finance  wished  to  tax 
gold  and  silver  at  the  same  rate  as  other  commodities,  be- 

*   Cf.  Classics,  vol.  ii,  p.  199. 
*Ibid.,  p.  278.  »Ch    xiv. 

*  General  Political  History,  ch.  ccxxvi. 

*  General  Research,  ch.  xiv. 


698       THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

cause  they  are  precious  things  and  possessed  by  the  rich. 
Such  a  theory  was  just.  But  other  officials  said  that  it 
would  encourage  concealment.  Therefore,  the  rates  re- 
mained unchanged. 

The  Yiian  dynasty  fixed  the  commodity  tax  at  the  rate 
of  one-thirtieth  in  1821  A.  K.  (1270  A.  D.),  and  raised  the 
rate  to  one-twentieth  in  1849  -^-  K.  (1298  A.  D.).  There- 
fore, in  1 82 1  A.  K.  the  total  amount  of  this  tax  was  fixed 
at  45,000  ingots  of  silver,  each  ingot  being  fifty  taels;  but 
in  1880  A.  K.  (1329  A.  D.)  the  actual  amount  was  over 
939,568  ingots.     The  tax  was  oppressive. 

In  191 5  A.  K.  (1364  A.  D.)  Ming  T'ai  Tsu  regulated  the 
commodity  tax  at  the  rate  of  one-thirtieth.  In  19 19  A.  K. 
he  exempted  books  and  agricultural  implements  from  tax. 
The  total  amount  of  the  annual  tax  in  2095  A.  K.  (1544 
A.  D.)  was  156,204  taels  of  silver.  One  of  the  worst  abuses 
of  the  Ming  dynasty  was  the  sending  of  eunuchs  to  the  prov- 
inces as  tax  commissioners  (2 147-2 171  A.  K.  or  1596- 1620 
A.  D.).  This  was  one  of  the  causes  of  the  fall  of  the  Ming- 
dynasty.^ 

In  the  first  year  of  the  present  dynasty  (2195  ^^-  ^^-  ^^ 
1644  A.  D.)  the  tax  on  the  sale  of  domestic  animals  was 
regulated  at  three  per  cent  ad  valorem.^ 

Lo-ti-shui  is  a  tax  upon  commodities  when  brought 
to  market.  Such  a  term  appeared  in  the  Ming  dynasty. 
The  present  dynasty  classified  it  under  the  head  of  miscel- 
laneous taxes.  It  is  insignificant  now,  but  it  should  be 
abolished. 

(a)  Farming  Out  the  Commodity  Tax 
The  farming-out  of  the  commodity  tax  began  in  the  Sung 

^  Continuation  of  the  General  Research,  ch.  xviii. 

'  Cases  of  the  Institutes  of  the  Ts'ing  Dynasty,  ch.  ccxlv. 


INDIRECT  TAXES 


699 


dynasty.  The  farmers  paid  a  fixed  price,  which  was  really 
a  tax.  and  it  was  used  for  local  and  national  expendi- 
tures. Formerly,  farmers  were  the  keepers  or  trans- 
porters of  government  property  (a  forced  labor),  and  it 
was  intended  that  they  should  derive  profits  from  their 
farming.  They  were  required  to  pay  a  pledge,  and  the 
right  of  collecting  the  tax  expired  at  the  end  of  a  certain 
term.  In  1621  A.  K.  (1070  A.  D.),  when  forced  labor 
was  changed  to  hired  labor,  the  price  of  such  right  became 
a  competitive  price.  The  government  sold  it  to  anyone  who 
offered  the  highest  price.  In  the  following  year  the  farmer 
was  taxed  at  five  per  cent  of  the  price  he  paid.  Generally 
the  farmer  could  not  make  a  good  profit,  and  even  met  with 
loss,  because  the  price  was  too  high. 

Such  a  farming-out  of  taxes  was  confined  to  a  certain 
market-place  for  the  taxes  on  all  commodities  or  to  a  certain 
trade  in  a  definite  locality.  It  has  never  applied  to 
direct  taxes.  The  purposes  of  this  system  were  to  insure 
the  regularity  of  the  revenue  and  to  avoid  the  trouble  of 
collection.  Since  the  market-place  in  a  country  town  was 
small,  and  the  particular  trade  simple,  it  was  not  economical 
for  the  government  to  establish  a  special  office  to  collect  the 
insignificant  taxes.  Moreover,  the  government  sometimes 
utilized  the  farmers  only  as  pioneers  for  a  new  or  unde- 
veloped tax,  and  itself  collected  the  tax  as  soon  as  this  was 
worth  while.  It  would  have  been  even  better  to  abolish 
such  taxes:  in  lieu  of  this,  the  system  was  at  that  time  jus- 
tifiable. 

Under  the  Viian  dynasty  a  strange  thing  occurred.  In 
1790  A.  K.  (1239  A.  D.)  a  merchant  bought  the  right  of 
taxing  commodities  in  all  the  provinces  for  2,200,000  taels 
of  silver.  Of  course,  this  was  a  barbaric  way  of  the  Mon- 
gol. Except  for  this  instance,  China  has  never  farmed  out 
a  tax  on  a  national  scale.     Even  this  case  was  confined  to 


700 


THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 


northern  China  only,  because  southern  China  was  at  that 
time  held  by  the  Sung  dynasty. 

In  the  present  day  this  system  still  exists.  One  form  of 
it  is  for  the  government  to  bestow  a  monopoly  of  the  taxed 
product  upon  certain  merchants,  the  salt  merchants  being 
the  best  example.  The  other  is  for  the  government  to  con- 
fer on  the  merchants  the  right  of  collecting  a  tax,  e.  g.,  the 
particular  guilds  in  Canton  which  collect  the  particular  taxes 
levied  upon  their  particular  goods.  But  China  has  no  ex- 
cuse for  not  abolishing  this  system  to-day. 

2.  Special  Excise  Taxes 

The  special  excise  taxes  are  far  more  important  than  the 
general  excise  taxes.  Historically,  they  were  sometimes 
the  chief  sources  of  revenue.  Most  of  them  have  the  char- 
acteristic of  government  monopol}^  either  in  their  original 
development  or  in  the  present  administration,  but  they  are 
really  taxes.  A  fair  characterization  is  to  say  that  they 
were  originally  public  prices  and  have  developed  into  ex- 
cise taxes. 

According  to  the  principles  of  Confucius,  all  natural 
resources  should  be  opened  to  the  people  as  a  whole,  and 
should  not  be  monopolized  by  the  government.  But  if  they 
were  opened  to  the  people  freely,  the  rich  would  get  a 
monopolistic  power  over  them,  and  the  poor  would  be  ex- 
cluded. Therefore,  the  Confucians  in  later  ages  held  the 
opinion  that  natural  resources  should  be  controlled  by 
the  government.  The  government  should  allow  everyone 
to  have  access  to  them,  and  should  tax  their  products,  but 
should  not  monopolize  them.  The  taxes  on  the  products 
derived  from  natural  resources  are  justified  by  the  fact  that 
large  use  is  made  of  them  only  in  connection  with  the  cap- 
italistic production  of  the  rich,  not  by  the  poor.  For  the 
same  reason,  a  tax  upon  the  profits  of  manufacturers  or 


INDIRECT  TAXES  ;oi 

merchants  would  be  better  than  one  upon  the  land  of 
farmers.  Although  excise  taxes  are  shifted,  they  are  never- 
theless taxes  on  profits,  because  the  products  taxed  come 
from  highly  capitalistic  enterprises.  This  is  true  of  the 
businesses  of  salt,  iron,  and  the  like.  China  has  not  pro- 
duced great  industrial  kings  since  the  middle  part  of  the 
Han  dynasty,  because  the  government  has  either  monopo- 
lized natural  resources  or  taxed  them  at  a  high  rate.  Tn 
short,  little  room  has  been  left  for  capitalistic  enterprises. 

(a)  Tax  on  Timber 

According  to  the  Official  System  of  Chou,  the  forests 
were  controlled  by  the  government,  and  all  the  natural 
products,  such  as  the  teeth,  horns,  bones  and  feathers  of 
animals,  pueraria  and  other  grasses,  fuel,  charcoal  and  coal, 
fruits  and  vegetables,  were  subject  to  taxes.  Timber  was 
taxed  at  the  rate  of  twenty-five  per  cent.^ 

When  Kuan  Tzu  became  the  minister  of  Ch'i,  he  put  for- 
ests and  grasses  under  government  monopoly.  The  woods 
of  the  mountains  were  classified  into  three  classes — for  fuel, 
for  buildings  and  for  coffins — and  were  required  to  pay 
three  rates  of  tax.'  Such  a  monopoly  of  natural  re- 
sources lasted  to  the  end  of  Ch'i.*  But  these  practices  were 
not  in  harmony  with  the  principles  of  Confucius. 

The  tax  on  the  transportation  of  bamboo  and  timber 
began  with  the  kingdom  of  Latter  Ch'in  (about  944-967 
A.  K.  or  393-416  A.  D. ).  The  Tang  dynasty  revived  this 
tax  in  1333  A.  K.  (782  A.  D.),  and  it  was  abolished  in  1335. 
During  the  Southern  Sung  dynasty  this  tax  was  revived 
again. 

'  Chs.  xvi,  xiii. 

'  Kuan  Tsu,  chs.  Ixxx,  Ixxiv. 

'  Classics,  vol    V.  pt.  ii.  p.  683. 


702 


THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 


The  Kin  dynasty  established  a  special  bureau  for  taxing 
bamboo,  and  fixed  the  amount  of  the  annual  tax.  During 
the  Yiian  dynasty,  bamboo  was  a  government  monopoly. 

The  Ming  dynasty  also  taxed  bamboo  and  timber  at  dif- 
ferent percentages — ten,  twenty,  or  thirty  per  cent.  Under 
the  different  dynasties,  the  bamboo  and  timber  collected 
through  the  tax  were  used  for  buildings  and  other  purposes. 
In  2022  A.  K.  (147 1  A.  D.)  the  tax  was  paid  in  money,  and 
it  was  turned  into  the  department  of  labor  for  the  expenses 
of  building  and  manufacture.  Under  the  present  dynasty, 
the  tax  on  timber  is  three  or  ten  per  cent. 

(b)    Tax  on  Mineral  Products 

The  tax  on  mineral  products  began  in  the  Chou  dynasty. 
According  to  the  OiUcial  System  of  Chou,  gold,  jade,  tin 
and  precious  stones  were  subject  to  a  government  monop- 
oly.^ Kuan  Tzii  pursued  the  same  policy,  and  all  mines  of 
iron,  lead,  silver,  cinnabar,  gold,  copper,  etc.,  were  brought 
under  a  government  monopoly.^ 

The  chief  product  under  the  government  monopoly  of 
Kuan  Tzu  was  iron.  It  was  taxed  at  thirty  per  cent. ^  Kuan 
Tzu  regarded  this  tax  as  important  as  that  on  salt.*  In  433 
A.  K.  (119  B.  C),  Han  Wu  Ti  first  made  iron  a  govern- 
ment product  exclusively.  The  government  estblished 
''  iron  officers "  over  different  prefectures,  and  made 
iron  wares  for  sale.  Since  that  time  iron  has  sometimes 
been  under  a  government  monopoly  and  sometimes  under 
a  special  tax.  Over  the  entire  period  of  Chinese  history  the 
system  of  government  monopoly  has  been  the  more  fre- 
quent, although  the  government  rarely  undertook  to  make 

^  Ch.  xvi.  2  Ch.  Ixxvii. 

■  Ch.  Ixxxi. 

*  The  Ancient  History  of  China,  p.  204. 


INDIRECT  TAXES  yoi^ 

iron  wares,  contenting  itself  with  controlling  the  raw  mate- 
rial merely. 

In  1065  A.  K.  (514  A.  D.)  the  Northern  Wei  dynasty 
established  "  silver  officers  "  to  take  charge  of  the  min- 
ing and  manufacturing  of  silver.  Under  this  dynasty  there 
were  also  more  than  one  thousand  families  in  Hanchung 
(Shensi)  who  were  called  '*  gold  families,"  getting  gold  in 
the  Han  River  and  sending  it  at  the  end  of  the  year  to  the 
government.^ 

The  tax  on  mineral  products  began  to  assume  great  im- 
portance in  the  Tang  dynasty.  Under  this  dynasty  there 
were  168  mines  of  gold,  silver,  iron,  tin,  etc^  In  the  Sung 
dynasty  there  were  also  271  mines. ^ 

Over  all  mines  there  were  special  officers.  Some 
mines  were  opened  by  the  government  with  its  own  capital, 
and  some  were  bought  by  people  who  paid  a  certain  per- 
centage of  the  products  to  the  government,  usually  twenty 
per  cent.  But,  in  any  case,  the  government  had  monopo- 
listic power  over  the  mines,  because  it  not  only  taxed  their 
products,  but  also  bought  them  at  a  fixed  price. 

Through  the  Viian,  the  Ming,  and  the  present  dynasty 
no  great  changes  in  policy  have  been  made.  In  the  present 
dynasty,  when  the  tax  on  mineral  products  was  twenty  per 
cent,  the  government  bought  forty  per  cent  of  the  product 
at  a  fixed  price,  and  permitted  the  remaining  forty  per  cent 

'  History  of  Wei,  ch.  ex. 

'During  the  reign  of  Tang  Hsien  Tsung  U357-I37I.  or  806-820 
A.  D.),  the  annual  taxation  of  different  mines  was  at  the  following 
amounts:  12,000  taels  of  silver;  j66,ooo  catties  of  copper;  2,070,000 
catties  of  iron;  50,000  catties  of  tin;  lead  having  no  regular  amount. 

'  In  1629  (1078  A.  I).),  the  amounts  of  taxes  levied  upon  different 
mines  Avere  as  follows:  10,710  taels  of  gold;  215,385  taels  of  silver; 
14,605,969  catties  of  copper;  5,501,097  catties  of  iron;  9.197,335  catties 
of  lead;  2.321.898  catties  of  tin;  3,356  catties  of  quicksilver;  3,646 
catties  and  more  than  14  taels  of  vermilion. 


704 


THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 


to  be  sold  freely  by  the  miners ;  or,  the  tax  might  be  ten  per 
cent,  when  the  government  might  buy  the  remaining  ninety 
per  cent ;  or,  the  tax  might  become  thirty  per  cent,  when  the 
rest  w^as  sold  by  the  miners  themselves.  Sometimes  the 
government  used  its  own  capital,  and  made  contracts  with 
the  merchants  for  the  execution  of  such  business.  Some- 
times the  government  itself  opened  the  mines. 

The  government  monopoly  of  alum  began  in  the  Tang- 
dynasty.  It  was  abolished  in  1389  A.  K.  (838  A.  D.),  and 
the  alum  mines  were  left  to  be  controlled  by  the  local  gov- 
ernments. The  Five  Dynasties  established  special  officers  to 
monopolize  them.  During  the  Sung  dynasty  the  alum  tax 
became  important.  In  1634  A.  K.  (1083  ^-  D-)  ^^^  annual 
tax  was  337,900  strings.^ 

Passing  through  the  Kin,  the  Yiian  and  the  Ming  dynas- 
ties, there  was  also  government  monopoly  of  alum.  In  the 
Law  Code  of  the  Ts'ing  Dynasty  an  article  provides  that 
the  punishment  for  unlicensed  alum  is  according  to  that 
for  unlicensed  salt.^  Therefore,  although  the  alum  tax 
at  the  present  day  is  insignificant,  alum  still  has  the  char- 
acter of  a  government  monopoly. 

The  present  dynasty  put  the  mining  regulations  into  their 
present  form  in  2455  A.  K.  (1904  A.  D.).  The  license  tax 
is  one  hundred  taels  for  ten  square  miles,  and  one  tael  is 
added  for  each  additional  square  mile,  thirty  square  miles 
being  the  limit.  Operators  are  also  required  to  pay  one 
year's  land  tax.  When  mineral  products  are  extracted 
out  of  ores,  no  more  land  tax  is  required,  but  the  products 
are  taxed  according  to  the  following  rates :  The  tax  on  coal, 
antimony,  iron,  alum  and  borax  is  five  per  cent  ad  valorem; 
that  on  kerosene  oil,  copper,  tin,  lead,  sulphur  and  vermilion, 

*  History  of  Sung,  ch.  clxxxv. 
'  Ch.   xiii. 


INDIRECT  TAXES 


705 


seven  and  a  half  per  cent;  that  on  gold,  platinum,  silver, 
quicksilver  and  spelter,  ten  per  cent;  that  on  diamonds, 
quartz  crystals,  and  other  precious  stones,  twenty  per  cent. 
When  these  products  are  exported,  they  are  also  required  to 
pay  custom  duties. 

There  are  many  reasons  why  the  mineral  resources  of 
China  have  not  been  extensively  developed.  First,  the  gov- 
ernment did  not  want  to  open  the  mines.  Take,  for  ex- 
ample, Tang  T'ai  Tsung,  a  typical  emperor.  In  1187  A.  K. 
(636  A.  D.)  Ch'iian  Wan-chi,  a  favorite  of  his,  told  him 
that  an  annual  revenue  of  several  million  strings  could  be 
obtained  by  opening  two  silver  mines.  T'ai  Tsung  said  in 
part :  "  What  I  want  is  not  money.  I  am  only  sorry  that  I 
receive  no  good  advice  which  can  benefit  the  people.  You 
have  never  recommended  a  worthy  person  nor  dismissed  an 
unworthy  person.  But  you  speak  only  of  the  profit  of  tax- 
ing silver.  Do  you  want  me  to  be  Huan  and  Ling?"  Then 
he  dismissed  Wan-chi  immediately.^ 

Second,  the  opening  of  mines  sometimes  did  harm  to  the 
people,  because  the  officials  required  a  fixed  amount  of  tax 
from  the  miners  without  regard  to  their  output.  About  the 
end  of  the  Ming  dynasty  (2 147-2 156  A.  K.  or  1596- 1605 
A.  D.)  mining  was  looked  after  by  the  eunuchs,  and  this  was 
one  cause  of  the  fall  of  that  dynasty.  Hence  the  opening  of 
mines  came  to  be  regarded  as  disadvantageous. 

Third,  there  was  an  economic  consideration.  Since  China 
was  an  agricultural  country,  she  did  not  like  to  let  the  people 
leave  their  farms  for  the  mines.  Moreover,  the  laborers 
working  under  ground  were  usually  not  good  citi- 
zens, because  good  men  would  not  engage  in  this  labor. 
Hence  there  was  a  dread  that  a  great  number  of  bad  men 

*  Huan  Ti  and  Ling  Ti  were  the  two  bad  emperors  of  the  Latter 
Han  Dynasty.    General  Political  History,  ch.  cxciv. 


7o6       THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

or  adventurers  coming  from  different  regions  to  the  mines 
would  disturb  the  peace  of  the  empire.  For,  since  mines  are 
subject  to  the  law  of  diminishing  returns,  although  it  is 
easy  to  get  laborers  when  mining  is  profitable,  it  would 
be  difficult  to  send  them  home  when  the  profit  was  exhausted. 
This  theory  was  well  expressed  in  an  edict  of  Ts'ing  Shih 
Tsung  (2275  A.  K.  or  1724  A.  D.). 

Added  to  these  three  reasons  which  operated  in  the  past, 
the  lack  of  capital,  science  and  machinery  are  other  causes 
at  the  present  time.  For  all  these  reasons  together,  the 
Chinese  mines  have  not  been  greatly  developed.  This  may 
prove  a  very  fortunate  thing  for  the  future,  since  China  has 
thus  preserved  her  natural  resources  while  western  coun- 
tries have  been  exhausting  theirs  at  a  rapid  rate. 

(c)  Tax  on  Salt 
The  government  monopoly  of  salt  began  with  Kuan  Tzu.^ 
This  tax  continued  practically  throughout  all  dynasties,  and 
has  become  the  chief  item  among  the  excise  taxes.  There 
are  many  theories  and  regulations  about  this  tax,  but  we 
have  no  need  to  enter  into  them.  According  to  the  budget 
of  this  year  (2462  A.  K.),  the  total  tax  on  salt  is  about 
forty  million  taels.  When  the  present  method  of  collecting 
the  tax  has  been  reformed,  the  government  will  get  a  greater 
revenue  than  it  does  now,  while  at  the  same  time  the  people 
may  enjoy  a  lower  price. 

(d)  Tax  on  Liquors 
According  to  the  principles  of  Confucius,  there  is  no  abso- 
lute prohibition  against  liquors,  but  they  should  be  regu- 
lated. If  there  is  a  gang  gathering  for  unlawful  drinking 
and  plotting  against  the  government,  they  may  be  put  to 
death.     If  the  drinkers  have  simply  fallen  into  a  bad  habit 

^  The  Ancient  History  of  China,  pp.  203-4. 


INDIRECT  TAXES 


707 


they  should  be  taught  instead  of  being  put  to  death. ^  Ac- 
cording to  the  Official  System  of  Chou,  there  was  an  officer 
ip'ing  skill)  to  inspect  liquors  and  regulate  them.^  The 
law  of  the  Han  dynasty  provided  that  if  three  men  or  more 
should  drink  together  without  special  reason,  they  should 
pay  a  fine  of  four  taels  of  gold.^  Therefore,  the  people  had 
no  right  to  drink  at  a  gathering,  unless  the  government 
gave  them  a  special  permit.  There  were  two  reasons  for 
the  prohibition  of  spirits:  one  moral  and  the  other  economic, 
the  latter  being  that  distilled  spirits  waste  grain,  which 
is  the  food  of  the  people. 

The  government  monopoly  of  liquors  began  with  Han 
VVu  Ti  (454  A.  K.  or  98  B.  C).  Since  that  time  liquors 
have  been  sometimes  prohibited,  sometimes  made  by  licensed 
private  distillers,  and  sometimes  controlled  as  a  government 
monopoly.  During  the  reign  of  Sung  Jen  Tsung  (about 
16001604  A.  K.  or  1 049- 1 053  A.  D.)  the  annual  tax  on 
liquors  and  distillers'  grains  amounted  to  14,986,196  strings. 
In  the  present  dynasty  there  is  no  government  monopoly  of 
liquors,  but  the  tax  on  them  has  been  greatly  increased  since 
2452  A.  K.  (1901  A.  D. ).  In  China  there  are  no  saloons, 
so  there  are  no  saloon  licenses. 

(e)    Tax  on  Vinegar 

Connected  with  the  tax  on  liquors  was  the  ta.x  on  vinegar. 
The  government  monopoly  of  vinegar  began  in  the  Wei 
dynasty.  It  was  practised  during  the  Five  Dynasties,  the 
Sung,  the  Kin  and  the  ^'iian  dynasties.  The  Ming  dynasty 
did  not  monopolize  it,  but  levied  on  it  a  license  tax.  In  the 
present  dynasty  vinegar  is  not  subject  to  a  special  tax. 

^Classics,  vol.  iii.  pt.  ii,  pp.  41 1-2. 

*  Ch.  xxxvi. 

*  History  of  Han.  ch.  iv    (commentary). 


jo8       THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

(f)    Tax  on  Tea 

Tea  was  first  taxed  in  1333  A.  K.  (782  A.  D.),  but  this 
tax  was  abolished  in  1335.  In  1344  A.  K.  (793  A.  D.)  tea 
first  became  the  object  of  a  permanent  tax.  It  was  taxed 
in  both  the  tea-growing  districts  and  the  important  passes — 
ten  per  cent  ad  valorem.  Before  1372  A.  K.  (821  A.  D.) 
the  annual  tax  amounted  to  four  hundred  thousand  strings. 
The  rate  of  tax  was  doubled  in  1372.  Li  Yii  expressed  a 
protest  in  the  following  words :  Since  tea  is  necessary  to  the 
people,  a  heavy  tax  must  increase  its  price  and  hurt  the  poor. 
Since  tea  is  naturally  produced  in  large  amount,  and  since 
an  increase  of  tax  depends  upon  its  sale,  a  high  price  will 
cut  down  the  demand.  His  reasoning  is  correct,  and  it  is 
true  in  regard  to  other  excise  taxes  in  general.  But  the 
government  did  not  accept  it.  In  1386  A.  K.  tea  began  to 
be  monopolized  by  the  government,  but  the  monopoly  was 
abolished  in  the  same  year.  In  later  times  the  tax  on  tea 
became  higher  and  higher. 

At  the  beginning  of  the  Sung  dynasty  the  government 
monopolized  tea.  In  1585  A.  K.  (1034  A.  D.)  the, total 
tax  was  annually  1,500,000  strings.  In  1610  A.  K.  (1059 
A.  D.)  there  was  the  system  of  *'  free  trade,"  that  is,  the 
government  simply  taxed  the  tea-farmers  and  the  tea-mer- 
chants without  monopolizing  tea.  In  later  times,  tea 
was  sometimes  under  government  monopoly  and  sometimes 
under  the  "  free-trade  "  system.  The  Yiian,  the  Ming,  and 
the  present  dynasty  have  adopted  the  latter  system.  When 
the  merchants  want  to  buy  tea  from  the  tea-farmers,  they 
must  first  buy  tea-certificates  from  the  officials.  Then  they 
pay  taxes  to  the  inland  customs  according  to  the  certificates. 
If  the  amount  of  their  tea  does  not  correspond  with  the  cer- 
tificates, or  if  their  tea  is  separated  from  the  certificates,  they 
are  punished  as  smugglers.  Nor  are  the  tea-farmers  al- 
lowed to  sell  tea  to  those  who  have  no  certificates.     Accord- 


INDIRECT  TAXES 


709 


ing  to  the  budget  of  this  year  (2462  A.  K.),  the  total  tax 
on  tea  is  about  six  million  taels. 

(g)  Tax  on  Incense 
During  the  Sung  dynasty,  besides  tea,  salt  and  ahini,  there 
was  a  great  revenue  coming  from  frankincense  or  gum 
olibanum.  It  was  bought  up  exclusively  by  the  govern- 
ment from  foreigners,  and  then  sold  directly  to  con- 
sumers. Sometimes  the  government  sold  it  to  the  mer- 
chants, who  in  turn  sold  it  to  consumers.  In  short,  frank- 
incense was  a  government  monopoly.^ 

(h)    Tax  on  Ginseng 

Ginseng  is  a  plant  the  root  of  which  is  supposed  to  re- 
semble the  human  body  in  shape.  In  Hsii  Shen's  Dictionary, 
published  in  the  Han  dynasty,  it  was  recognized  as  a  medi- 
cine. In  the  Tang  dynasty  it  became  an  item  of  tribute  to 
the  emperor  from  the  prefecture  of  T'aiyiian.  Shansi.  To- 
day the  Chinese  value  it  very  highly. 

Since  the  best  kind  of  ginseng  is  found  in  Manchuria,  the 
present  dynasty,  from  its  very  beginning,  put  the  ginseng 
mountains  under  special  governmental  control.  The  gin- 
seng-gatherers must  get  a  license,  and  the  number  of  licenses 
is  limited.  The  gatherers  are  strictly  controlled  as  to  where 
they  shall  go  and  when  they  shall  return.  In  Shengking. 
the  tax  for  each  license  is  five  maces  of  ginseng,  and  in 
Kirin,  two  taels.  After  the  ginseng-gatherers  have  offered 
to  the  government  the  best  ginseng,  the  remaining  ginscnq: 
is  allowed  to  be  sold  to  the  merchants  in  the  governmeni 
firms.  The  price  was  fixed  in  2360  A.  K.  (1809  A.  D.)  at 
twenty  taels  of  silver  for  one  tael  of  the  best  ginseng.  The 
merchants  are  not  allowed  to  bring  with  them  the  ginseng 
which  they  have  bought  into  Shanhaikuan.  the  pass  at  the 

'  History  of  Sutig,  ch.  clxxxv. 


7IO 


THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 


east  end  of  the  Great  Wall.  The  government  transports  it 
for  them  with  the  government  ginseng,  and  charges  them 
the  freight  and  customs  duty.  One  catty  of  the  ginseng 
of  Shengking  pays  four  taels  of  silver  for  the  freight  and 
customs  duty,  and  that  of  Kirin  pays  six  taels.  Therefore, 
ginseng  is  subject  to  a  very  strict  excise  tax.^ 

(i)  Tax  on  Tobacco 
Tobacco  began  to  be  used  during  the  Ming  dynasty.  It 
was  called  ''  evil  thing  "  at  the  beginning  of  the  present 
dynasty,  and  it  was  proposed  to  prohibit  it  during  the 
reign  of  Jen  Tsung  (2347-2371  A.  K.  or  1796- 1820  A.  D.). 
x\ccording  to  the  old  regulations  of  2331  A.  K.  (1780  A.  D.), 
one  hundred  catties  of  tobacco  pay  four  maces  and  six  canda- 
reens  of  silver  to  the  inland  customs.  In  2435  A.  K.  (1884 
A.  D. )  the  Department  of  the  Treasury  began  to  propose  a 
license  tax  for  the  tobacco  firms.  This  tax  will  become  im- 
portant in  the  future. 

(j)    Tax  on  Opium 

Originally  China  prohibited  opium.  In  2390  A.  K. 
(1839  A.  D.)  the  prohibition  were  made  extremely  strin- 
gent. The  importers,  producers,  sellers,  planters  and 
smokers  were  all  punished  with  death,  although  by  different 
methods.  But  English  merchants  smuggled  in  opium  con- 
stantly. Through  the  Opium  War  (2393  A.  K.  ,or  1842 
A.  D.),  England  forced  China  to  accept  opium.  Hence  the 
Chinese  prohibition  of  opium  was  done  away  with,  and  the 
Chinese  have  since  planted  the  native  opium.  This  was  the 
consequence  of  England's  importation  of  opium.  In  2455 
A.  K.  (1904  A.  D.)  the  tax  on  native  opium  collected  by 
the  customs  was  3,750,598  taels,  while  the  import  duty  on 
foreign  opium  amounted  to  6,025,121  taels. 

*  Institutes  of  the  Ts'ing  Dynasty,  ch.  xx.    Cases  of  the  Institutes  of 
the  Ts'iny  Dynasty,  ch.s.  ccxxxii,  ccxxxiii. 


INDIRECT  TAXES 


711 


In  2457  A.  K.  (1906  A.  D.)  a  decree  was  issued  that 
opium  should  be  absolutely  prohibited  for  a  period  of  ten 
years.  The  acreage  of  opium-growing  land  and  the 
number    of    opium-smokers    have    been    greatly    reduced. 

V.    TAXES    ox    TRANSACTIONS 

Taxes  on  transactions  began  in  the  Chou  dynasty. 
According  to  the  Official  System  of  Chou,  all  commercial 
transactions  were  done  by  bills  (chih  chi),  long  ones  for 
large  transactions  and  short  ones  for  small  transactions. 
There  were  also  the  written  tallies  (shu  ch'i)  used  as  checks 
and  receipts.^  The  bills  and  tallies  were  made  by  the  gov- 
ernment, with  stamps  upon  them.  Their  nature  resembled 
that  of  stamp  tax,  and  there  were  fines  for  the  punishment 
of  fraud  and  evasion. 

From  the  Eastern  Tsin  dynasty  to  the  Chen  dynasty  (868- 
1 140  A.  K.  or  317-589  A.  D.),  transactions  in  slaves,  horses, 
cattle,  land  and  houses  were  made  binding  by  means  of 
documents  or  title-deeds.  The  tax  was  four  per  cent  ad 
7'alorem — three  per  cent  being  paid  by  the  seller  and  one 
per  cent  by  the  buyer.  Even  if  the  transaction  was  not 
effected  by  means  of  a  document,  the  value  of  the  object 
was  determined  and  taxed  also  at  four  per  cent.^ 

In  1334  A.  K.  (783  A.  D.)  a  tax  on  money-payments  was 
created.  In  all  public  and  private  payments,  fifty  coins  out 
of  one  thousand  were  retained  for  the  government,  making 
the  tax-rate  five  per  cent.  When  there  was  a  payment  in 
things  or  an  exchange  of  commodities,  such  a  transaction 
was  figured  out  in  terms  of  money.  Tlie  brokers  were 
given  records  for  the  writing  down  of  their  daily  trans- 
actions,  the  total  amount  of  wliich   was  calculated  on  the 

1  Cf.  supra,  pp.  432.  448-9. 
'  History  of  Sui,  ch.  xxiv. 


712       ^^HE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

following  day.  Those  whose  transactions  did  not  pass 
through  brokers  were  given  records  for  themselves,  and 
those  who  received  no  records  offered  the  deduction  them- 
selves, together  with  the  statements  of  facts.  If  one  con- 
cealed one  hundred  coins,  two  thousand  coins  were  confis- 
cated, and  sixty  blows  with  the  long  stick  were  inflicted 
upon  him.  The  informer  of  the  concealment  was  rewarded 
with  ten  thousand  coins,  paid  by  the  evader.  When 
this  law  was  put  into  effect,  the  brokers  monopolized 
the  power  of  collection,  and  there  was  great  fraud.  The 
government  got  less  than  half  the  tax,  and  discontent 
prevailed  over  the  whole  empire.  In  the  following  year 
(1335)  the  law  was  abolished.^  This  tax  was  a  bad  one 
but  it  made  use  of  the  method  of  stoppage  at  the  source. 

The  tax  on  title-deeds  became  a  great  source  of  revenue 
during  the  Sung  dynasty.  Ml  purchasers  and  mortgagees 
of  real  estate  and  cattle  were  required  to  present  their  title- 
deeds  to  be  stamped  with  the  official  seal  and  to  pay  an  ad 
valorem  tax.  The  time  limit  for  doing  so  was  not  over 
two  months.  If  this  limit  was  exceeded,  the  tax  was 
doubled.  Without  the  seal,  deeds  received  no  legal  pro- 
tection. Deeds  were  also  sold  by  the  government,  at  a 
profit.  From  1595  to  1672  A.  K.  (1044-1121  A.  D.)  the 
tax  was  four  per  cent  ad  valorem;  but  in  1722  A.  K.  (1171 
A.  D.)  it  was  raised  to  12.12  per  cent.  This  tax  was  an 
important  item  for  the  meeting  of  military  expenditures. 

Shortly  before  1771  A.  K.  (1220  A.  D.)  the  people  were 
allowed  to  buy  the  stamped  document  to  be  pasted  on  to  a 
private  deed,  and  this  was  sufficient.  This  was  quite  like  a 
stamp  tax.  But  some  trouble  arose  in  connection  with  the 
land-tax  system,  as  the  government  did  not  know  where  the 
purchaser  of  the  land  was.      Therefore,  it  was  again  re- 

^  Old  History  of  Tang,  ch.  xlix. 


INDIRECT  TAXES 


7^Z 


quired  that  transactions  should  pass  through  the  hands 
of  officials  (1771).^ 

In  the  present  dynasty,  the  tax  on  title-deeds  was  fixed  at 
three  per  cent  ad  valorem  (2198  A.  K.  or  1647  A.  D.)  Since 
2286  A.  K.  (1735  A.  D.)  mortgages  have  not  been  taxed. 
In  2340  A.  K.  (1789  A.  D.)  the  time-limit  for  paying  the 
tax  was  fixed  at  one  year.  But  this  tax  does  not  produce 
any  great  revenue ;  for  the  purchasers  of  lands  and 
houses  are  not  compelled  to  have  their  deeds  stamped,  be- 
cause when  they  do  so,  they  may  conceal  the  acreage  or  the 
price,  and  because  the  clerks  and  officials  are  often  corrupt. 
Moreover,  the  law  itself  is  not  good,  since  it  fixes  a  certain 
amount  for  certain  districts  or  provinces. 

In  2458  A.  K.  (1907  A.  D.)  the  stamp  tax  was  enacted. 
While  there  were  different  rates  for  different  transactions, 
the  general  rate  was  .2  per  cent  upon  a  transaction  whose 
value  was  above  ten  thousand  copper  coins.  But  this  act 
has  not  been  universally  put  in  force. 

VI.    CONCLUSION 

To  the  extent  that  a  state  needs  revenue,  it  cannot  follow 
strictly  the  principles  of  Confucius  for  the  abolition  of  all 
indirect  taxes.  But,  to  conform  to  his  ideas,  and  at  the 
same  time  to  supply  the  fiscal  needs  of  the  state,  we  miglit 
adopt  this  program:  China  should  abolish  all  customs 
duties  on  internal  trade,  leaving  only  those  on  imports  and 
exports;  it  should  abolish  all  excise  taxes  in  general, 
except  a  very  few  on  special  products.  Transactions 
should  not  be  taxed  at  all.  There  should  be  no  stamp 
tax.  The  business  tax  and  the  license  tax  should  be  changed 
to  direct  taxes,  so  as  to  make  them  taxes  on  net  income 
In  these  ways  indirect  taxes  could  be  reduced  to  a  minimum. 

As  regards  direct  taxes,  we  might  adopt  this  program: 

^General  Research,  ch.  xix. 


714 


THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 


The  poll  tax,  family  tax,  and  general  property  tax,  which 
China  abolished  long  ago,  should  not  be  revived.  The  land 
tax  should  remain,  and  the  house  tax  should  be  universally 
adopted.  The  income  tax  should  be  highly  developed,  and 
the  inheritance  tax  should  be  re-introduced.  In  short,  China 
should  tax  income  rather  than  property. 

As  to  her  financial  system  as  a  v^hole,  China  must  make 
a  radical  change  and  make  her  system  conform  to  the  prin- 
ciples of  modern  finance,  modified  to  suit  the  customs,  ideals, 
and  economic  needs  of  the  Chinese  people. 


PART  V 
CONCLUSION 


CHAPTER  XXXVI 
Conclusion 

Since  we  have  discussed  and  criticized  topic  by  topic, 
all  the  subjects  which  we  have  considered,  it  remains  only 
for  this  final  chapter  to  bring  together  our  conclusions. 

According  to  the  order  we  have  adopted,  we  should  first 
say  something  about  consumption.  Confucius  prescribed 
different  standards  for  different  classes — somewhat  as  in  a 
sumptuary  law.  There  is  no  doubt  that  this  has  checked 
economic  development  to  a  certain  extent.  But  the  funda- 
mental idea  of  Confucius'  sumptuary  regulations  was  not 
so  much  social  as  economic.  He  feared  that  the  production 
of  wealth  would  not  be  sufficient  for  everyone  if  everyone 
extended  his  wants  without  restraint.  He  perceived  the 
law  of  diminishing  returns,  and  his  idea  was  justified  by 
the  fact  that  in  ancient  times  production  was  on  a  very 
limited  scale.  Again,  under  the  monarchical  government 
of  the  old  type,  a  sumptuary  law  was  necessary  for  the 
preservation  of  social  classes.  Moreover,  since  Confucius 
permitted  anyone  to  raise  himself  to  the  higher  classes, 
everyone  might  consume  more  as  his  social  standing  became 
higher.  Therefore,  sumptuary  regulations  do  not  really 
prevent  economic  development,  provided  the  individual  is 
capable  of  elevating  himself.  The  word  noble  and  the  word 
rich  are  interchangeable.  In  Chinese  history  the  sumptuary 
regulations  have  had  little  or  no  effect,  and  rich  people  may 
consume  anything  except  a  few  things  connected  with  official 
distinctions.  We  must  therefore  seek  the  explanation  for 
the  stationary  production  of  China  in  other  causes.     Con- 

717 


yiS       THE  ECONOMIC  PRINCIPLES  OP  CONFUCIUS 

fucius  is  not  responsible  for  it,  because  different  standards 
for  different  classes  in  accordance  with  their  incomes  are 
natural  and  inevitable. 

We  must  now  explain  why  Chinese  economic  life  has 
been  stationary  for  so  many  centuries  and  production  has 
made  so  little  progress.  The  first  cause  is  in  the  ethical 
field.  A  man  always  has  two  kinds  of  motives,  economic 
and  ethical.  But  the  economic  motive  is  generally  stronger 
than  the  ethical  motive.  Confucius,  however,  teaches  men 
to  subject  the  former  to  the  latter.  Such  a  teaching  is  not 
always  accepted  and  acted  upon,  but  it  has  been  followed 
in  China  to  a  remarkable  extent.  For  this  reason  the  Chi- 
nese are  ashamed  to  talk  about  money-making,  and  produc- 
tion is  checked.  Confucius  is  responsible  for  it,  but  we 
should  not  wish  to  criticize  him  on  this  account. 

Second,  there  has  been  a  philosophical  reason  for  China's 
lack  of  progressiveness.  Both  Taoism  and  Buddhism  are 
too  spiritual,  disregarding  material  welfare.  Under  the 
Tsin  dynasty  and  the  Southern  Dynasties,  the  scholars  were 
fond  of  ''  pure  conversation,"  abstract  and  mystical.  This 
was  because  of  the  influence  of  Taoism.  Wang  Yen  (807- 
862  A.  K.  or  256-311  A.  D.),  who  did  not  even  speak  the 
word  "  money,"  is  an  example.  The  philosophy  of  Budd- 
hism is  to  extinguish  human  wants,  and  to  make  life  as  hard 
as  possible.  Under  its  influence  the  scholars  of  the  Sung, 
the  Yiian,  the  Ming,  and  even  the  present  dynasty,  were 
little  concerned  about  economic  problems.  Of  course,  this 
was  due  not  only  to  Buddhism,  but  also  to  Confucianism. 
But  Confucianism  never  goes  to  extremes.  Even  the 
Confucian  scholars  have  been  somewhat  influenced  by  Budd- 
hism. The  philosophical  views  of  these  three  religions  have, 
therefore,  combined  to  check  economic  progress,  but  es- 
pecially Taoism  and  Buddhism. 

Third,  there  has  been  an  educational  reason  for  China's 


CONCLUSION 


719 


backwardness.  After  the  Han  dynasty  China  had  practi- 
cally no  public  education  adapted  to  the  daily  needs  of  the 
people.  From  the  Wei  dynasty  to  the  Tang  dynasty,  liter- 
ature in  the  narrow  sense  was  most  popular.  From  the 
Sung  dynasty  to  the  present  day,  although  the  study  of  the 
Four  Books  ^  and  the  Five  Canons  has  been  very  popular, 
students  generally  have  not  made  much  use  of  them.  The 
worst  feature  of  all  was  the  requirement  known  as  the 
**modern  essay"  (pa  ku  or  ''eight  parts.")  It  was  established 
in  1921  A.  K.,  and  finally  abolished  in  2453  (1370-1902 
A.  D.).  Every  official  had  to  pass  civil-service  examinations, 
so  that  all  students  had  to  learn  how  to  write  the  modern 
essay.  Therefore,  the  object  of  their  study  of  the  Four 
Books  and  the  Five  Canons  was,  generally  speaking,  not  to 
make  use  of  them,  but  to  pass  examinations.  This  was 
really  a  profanation  of  the  Confucian  Bible.  The  modern 
essay  was  of  no  practical  use,  but  its  styles  were  various  and 
complex,  and  its  mastery  required  long  practice.  Even  the 
best  of  this  form  of  writing,  however,  is  not  good  enough 
to  be  ranked  with  other  kinds  of  literature.  The  study  of 
it  simply  wasted  time  and  energy.  Of  course,  there  were 
good  scholars  who  studied  deeply  and  widely  many  subjects 
besides  writing  modern  essays.  But  how  many  minds  of 
ordinary  students  were  befogged  by  such  a  bad  system 
of  education !  Even  among  the  good  scholars,  how  much 
better  off  they  would  have  been  if  they  had  been  freed  from 
such  a  requirement!  It  is  true  that  many  great  men  did 
come  to  the  front  through  the  civil  examinations.  But  this 
was  not  because  the  examinations  produced  great  men,  but 
simply  because  the  great  men  happened  to  pass  the  exami- 
nations. This  is  the  chief  cause  for  the  weakness  of  China, 
and  the  stagnation  of  its  economic  life  is  one  of  its  results. 

*  It   cuniains    the   "  Tireat    Learning/'    the   "'  Doctrine   of    the    Mean." 
the  "  Analects  ''  and  "  Meng  Tzu." 


720       THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

But  we  must  understand  that  Confucianism  did  not  make 
China  weak.  She  is  weak  not  because  she  followed  the 
teachings  of  Confucius,  but  precisely  because  she  did  not 
truly  follow  his  teachings. 

For  the  education  of  farmers,  artisans  and  merchants 
there  was  practically  no  provision.  There  was  no  school 
of  agriculture,  nor  of  mining,  engineering,  chem- 
istry, or  commerce.  The  only  education  that  the  farmers 
got  was  from  their  farms;  that  of  the  artisans,  from  their 
apprenticeship ;  and  that  of  the  merchants,  from  their  firms. 
Under  this  system  China  may  keep  her  economic  condition 
stationary,  since  her  people  receive  good  practical  training, 
but  she  cannot  make  great  advance,  because  the  farmers,  the 
artisans  and  the  merchants  lack  scientific  instruction. 

Fourth,  there  are  social  reasons  for  China's  situation. 
We  have  already  shown  that  China  has  classified  the 
people  into  four  classes  —  students,  farmers,  artisans 
and  merchants.  According  to  Confucius,  they  are  all 
equal.  But  in  Chinese  society  the  highest  esteem  has  always 
been  paid  to  students.  Therefore,  the  best  men  of 
the  nation  always  try  to  become  students,  and  leave  the  in- 
dustrial world  to  the  inferior  people.  Of  course,  we  cannot 
say  that  the  student  class  is  all  wise,  and  that  the  other  three 
classes  are  all  ignorant.  But  the  tendency  has  been  for  the 
intelligent  men  to  be  driven  out  of  these  three  classes  be- 
cause of  social  prejudice.  Since  the  industrial  world 
has  lost  the  help  of  the  student  class  for  so  long  a  time,  it  is 
no  wonder  that  the  farmers,  the  artisans  and  the  merchants 
have  not  made  any  great  improvements  or  inventions.  Al- 
though the  students  have  invented  some  things,  they  have 
done  it  not  to  turn  them  to  practical  account  but  from  scien- 
tific curiosity.  How  can  we  expect  that  ordinary  men 
should  develop  scientific  curiosity  and  the  power  of  inven- 
tion? 


CONCLUSION  721 

Besides  these  four  classes  of  people,  we  may  mention  two 
more  classes,  namely,  the  Buddhists  and  the  Taoists. 
We  criticize  them  not  from  the  religious,  but  from 
the  social  standpoint.  They  do  not  belong  to  any  of  the 
four  classes,  but  form  two  separate  classes  by  themselves. 
They  do  not  cultivate  the  land,  but  eat.  They  do  not  weave 
cloth,  but  dress.  According  to  history,  they  have  been  ex- 
empted from  many  taxes.  Generally  speaking,  they  are  the 
parasites  of  society.  Although  we  may  say  that  the  student 
class  is  also  somewhat  idle,  there  are  many  great  differences 
between  the  students  and  the  Buddhists  and  Taoists.  For 
instance,  the  students  are  working  for  society,  while  the 
Buddhists  and  the  Taoists  live  by  themselves,  out  of  society, 
yet  depending  upon  society.  There  is  a  proverb,  "  The 
monks  are  fat.  but  the  students  are  lean."  The  monks  are 
fat  because  of  their  idleness,  and  the  students  are  lean  be- 
cause of  their  hard  study.  Since  a  great  number  of  the 
Chinese  have  become  Buddhists  and  Taoists,  there  are  two 
idle  classes,  and  the  productive  force  of  society  as  a  whole 
has  been  weakened.  Moreover,  they  have  spent  a  large 
amount  of  social  income  in  unproductive  ways.  Therefore, 
the  Buddhists  and  the  Taoists  are  also  responsible  for  the 
retarded  economic  development. 

Now,  we  may  divide  the  people  by  sexes,  and  look  upon 
the  women  as  a  class.  The  Chinese  women  are  productive 
indeed,  but  there  is  no  social  emancipation  of  women.  Most 
of  them  stay  at  home.  Although  they  are  productive,  their 
productive  power  is  limited.  In  the  industrial  world  prac- 
tically no  women  are  found.  Moreover,  from  the  middle 
class  up.  the  women  are  generally  idlers.  Here  we  disre- 
gard every  other  aspect  of  the  place  of  women  in  society 
except  the  economic,  and  declare  that  the  lack  of  the  social 
emancipation  of  women  greatly  retards  economic  develop- 
ment. 


722       THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

Fifth,  there  is  a  political  reason.  Since  the  Ch*in  dynasty 
consolidated  the  feudal  states,  China  has  been  under  a  single 
imperial  government.  In  governing  such  a  great  empire, 
v^^ithout  a  good  system  of  communication  and  transporta- 
tion, the  administration  is  necessarily  inefficient.  Therefore, 
since  the  Han  dynasty  the  Chinese  government  has  adopted 
the  doctrine  of  Lao  Tsu,  the  laissez-faire  policy.  After  the 
Yiian  dynasty  the  administration  became  worse,  because  the 
size  of  the  provinces  was  too  large.  Consequently  the  gov- 
ernment stands  aloof  from  the  people,  and  the  officials  are 
not  true  administrators  but  mere  tax-collectors.  How  can 
such  a  government  help  the  people  to  develop  their  economic 
interests  ? 

However,  if  the  government  really  adopted  the  laissez- 
faire  policy  and  let  the  people  alone,  the  results  would  be 
better  than  those  that  are  found  to-day.  Unfortunately,  the 
government  made  a  bad  combination.  Its  interference  was 
not  efficient  in  developing  the  economic  interests  of  the 
people  at  large,  and  its  laissez-faire  policy  was  not  sufficient 
to  allow  the  large  producers  to  develop  their  own  interests. 
The  manufacturers  and  merchants  have  been  frequently  in- 
terfered with.  If  China  had  allowed  capitalists  to  exist  as 
a  class,  she  would  have  passed  the  stage  of  capitalism  long 
since.  But,  because  she  adopted  socialistic  measures  a  little 
too  early,  and  destroyed  the  existence  of  capitalism,  there 
has  been  no  large  production. 

Sixth,  there  is  an  economic  reason.  Many  things  have 
retarded  the  economic  development  of  China:  (a)  The  lack 
of  revolutionary  changes  in  the  methods  of  production,  (b) 
The  lack  of  combinations  of  capital  on  a  large  scale  except 
in  the  form  of  trade  guilds,  (c)  The  lack  of  a  great  increase 
in  capital,  (d)  The  failure  to  develop  the  natural  resources, 
(e)  The  constant  growth  of  population.^     (f)   The  com- 

*  As  this  book  goes  to  press,  Professor  Edward  Alsworth  Ross,  of 


CONCLUSION  723 

paratively  equal  distribution  of  wealth.  There  is  no  need 
of  discussing  any  of  these  points  except  the  last  one.  In 
China  the  distribution  is  perhaps  more  equal  than  in  any 
other  modern  nation.  This  is  peculiar  to  the  Chinese.  It 
has  advantages  indeed,  but  it  has  also  serious  disadvantages, 
namely,  the  discouragement  of  large  production. 

As  to  the  subject  of  finance,  we  find  many  principles  of 
Confucius  which  hold  true  even  to-day.  The  only  differ- 
ence is  that,  under  the  monarchical  government  of  ancient 
times,  the  taxation  was  as  light  as  possible,  while  under  the 
constitutional  government  of  modern  times  we  have  to  in- 
crease taxation  to  provide  for  growing  social  needs. 
But  the  Chinese  have  not  shown  any  great  advance  in  their 
financial  system,  because  the  government  needs  have  been 
limited  and  the  administration  has  been  inefficient. 

\s  to  the  whole  economic  life  of  the  Chinese,  we  may 

the  University  of  Wisconsin,  has  published  in  The  Century  Magazine 
for  July,  191 1,  an  article  entitled,  "The  Struggle  for  Existence  in 
China."  He  says  that  one  general  cause  for  a  grinding  mass-poverty 
is  the  crowding  of  population  upon  the  means  of  subsistence.  His 
conclusion  is :  "  For  at  least  a  generation  or  two  China  will  produce 
people  rapidly,  in  the  Oriental  way,  who  will  die  off  slowly  in  the 
Occidental  way.  ...  In  forty  or  fifty  years  there  will  come  a  power- 
ful outward  thrust  of  surplus  Chinese.  .  .  .  To  Mexico,  Central  and 
South  America,  South-eastern  Asia,  Asia-Minor,  Africa,  and  even 
Europe,  the  black-haired  bread-seekers  will  stream ;  and  then  '  What 
shall  we  do  with  the  Chinese?'  .  .  .  will  become  a  world  question." 
The  crowding  of  population  is  indeed  one  of  the  chief  causes  for  the 
poverty  of  China,  but,  as  pointed  out  above,  it  is  not  the  only  one. 
In  regard  to  Chinese  emigration  in  the  future,  we  may  say  that  China 
should  and  will  first  move  her  surplus  population  to  Manchuria,  Mon- 
golia. Chinese  Turke>lan  and  Tibet.  Icfore  any  great  eastern  emigra- 
tion takes  place  (cf.  supra,  pp.  306-7).  Before  the  whole  Chinese  em- 
pire is  filled  with  the  Chinese,  a  long  period  of  time  inust  elapse,  and 
by  that  time  the  population  will  probably  be  more  nearly  stationary  than 
at  present,  or  will  have  a  low  birth  rrtc.  Only  if  there  is  still  a  sur- 
plus of  population  for  which  there  is  not  enough  room  at  home,  will 
it  be  necessa»"y  for  them  to  emigrate. 


^24       '^HE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

say  that  it  is  more  socialistic  than  that  of  any  western  people. 
Take  consumption  for  example.  Consumption  is  more  in- 
dividualistic than  production.  Yet  the  Chinese  consume 
much  wealth  socially.  A  single  man  in  China  must 
spend  a  greater  sum  of  money  for  others  beside  himself 
than  in  America.  Outside  of  the  family  group,  there 
are  the  ties  of  clan,  of  town,  of  marriage  and  of  friend- 
ship. These  relations  are  extended  beyond  the  limit  of  ter- 
ritory and  last  for  many  generations.  Since  the  social  rela- 
tions are  very  close,  complex  and  expanded,  the  social  ex- 
penditures in  the  individual  budget  are  very  large.  There- 
fore, there  is  a  proverb :  "  Social  expenditures  are  more 
urgent  even  than  debts."  ^ 

Production  also  shows  this  difference.  Agricultural  life 
in  China  is  somewhat  socialistic,  but  we  need  not  discuss  this 
here.  But  even  in  commercial  life,  the  trade  guilds  are  dif- 
ferent from  the  American  trusts.  Although  the  guilds  are 
organizations  for  the  private  interest  of  their  members,  they 
are  not  so  selfish  or  individualistic  as  the  trusts,  and  they 
also  have  social  functions  like  clubs.  The  Chinese  trade 
unions  are  about  the  same  as  those  in  America,  but  they  do 
not  interfere  with  the  liberty  of  others.  Therefore,  although 
the  guilds  and  the  unions  have  existed  for  many  centuries, 
public  sentiment  is  not  opposed  to  them.  In  a  word, 
their  competition  is  not  extremely  sharp,  and  their  selfish- 
ness is  not  great  enough  to  invite  the  hatred  of  the  public 
at  large. 

Distribution  also  is  more  socialistic  in  China  than  in 
western  nations. 

Furthermore,  in  regard  to  taxation,  the  Chinese  usually 

^  For  instance,  the  mother  of  T'ao  K'an  (810-885,  or  259-334  A.  D.), 
a  poor  widow,  cut  off  her  hair  and  sold  it  in  order  to  entertain  her 
son's  friend,  who  came  to  visit  him  unexpectedly.  History  of  Tsin, 
ch.  Ixvi. 


CONCLUSION  -25 

have  the  social  concept.  The  business  tax,  the  tax  upon 
title-deeds,  the  government  monopoly  of  salt  and  iron,  etc., 
are  believed  or  alleged  to  be  for  the  benefit  of  society. 
Therefore,  we  may  say  that  Chinese  economic  life  as  a 
whole  tends  in  a  socialistic  direction.  Such  an  idea  was 
fostered  before  the  time  of  Confucius,  and  it  was  much 
strengthened  by  him. 

Now,  there  remains  one  general  cause  which  has  made 
the  Chinese  different  from  other  people,  namely,  their 
natural  environment.  Why  was  Chinese  economic  life 
stationary?  Why  was  it  more  socialistic  than  that  of  other 
people?  Because  China  was  an  isolated  country.  The 
Chinese  regarded  China  as  a  world :  the  territory  outside 
of  China  was  not  counted,  and  the  people  not  Chinese  were 
mere  barbarians.  Such  a  wrong  conception  was  supported 
by  the  fact  that  they  did  not  during  thousands  of  years  find 
any  land  or  people  as  good  as  those  in  China.  Since  there 
was  no  national  struggle,  the  only  thing  for  them  to  do  was 
to  make  the  people  live  at  home  peacefully.  They  did  not 
want  rich  men,  because  thev  felt  that  the  rich  would  be  en- 
riched  at  the  expense  of  the  poor.  Hence  agriculture  was 
preferred  over  industry  and  commerce.  Some  cunning  and 
selfish  emperors  did  not  want  even  wise  men,  because  they 
feared  that  the  wise  would  be  a  menace  to  their  government 
Hence  public  education  was  seriously  narrowed.  This 
was  a  single  all-important  cause  from  which  many  other 
causes  have  developed  to  prevent  China  from  progressing. 

Therefore,  the  periods  of  Spring  and  .\utumn  and  of 
Warring  States  reached  a  high  mark  of  civilization 
which  the  latter  ages  have  not  surpassed.  More  heroes 
were  produced  in  time  of  war  than  in  time  of  peace. 
The  beginning  of  every  dynasty  was  good,  because  the 
ruling  house  had  fresh  vigor  and  energy,  and  the  great 
men   had    just   been   tested    in   tlie   rev()lutionary   struggle; 


726       THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

but  the  middle  part  or  the  end  of  almost  every  dynasty  was 
bad,  because  the  rulers  were  weak  and  ignorant,  and 
the  people  in  general  were  the  same.  After  the  Sung  dy- 
nasty the  national  strength  became  less  and  less,  on 
account  of  the  philosophical  schools  of  the  Sung — too  ab- 
stract and  unpractical,  too  refined  and  unwarlike.  There- 
fore, China  was  for  the  first  time  conquered  by  the  Mongol. 

We  have  criticized  the  Chinese  thus  far  as  severely  as 
possible.  Now,  what  can  be  claimed  for  the  Chinese?  ( i ) 
The  Chinese  have  the  best  religion — Confucianism.  This 
point,  of  course,  would  not  be  agreed  to  by  all  people. 
But  we  may  make  a  concession,  and  say  that  Confucianism 
is,  at  least,  one  of  the  best  religions.  (2)  The  Chinese  have 
the  highest  standard  of  morality.  Even  though  it  may  not 
be  superior  to  those  of  other  peoples,  it  is  certainly  equal  to 
them.  (3)  The  Chinese  have  the  most  widely-spoken  lan- 
guage. Although  it  is  difficult  for  foreigners  to  learn, 
it  is  the  national  language  of  four  hundred  million 
people.  In  addition,  the  written  language  is  used  in  Annam, 
Corea  and  Japan.  (4)  The  Chinese  have  produced  the  best 
literature  of  all  kinds.  This  is  beyond  dispute.  Since  the 
golden  ages  of  different  dynasties  lasted  for  a  long  time 
— much  longer  than  the  Periclean  age,  the  Augustan,  the 
Elizabethan,  or  the  age  of  Louis  XIV, — and  since  the 
Chinese  language  has  been  used  throughout  the  whole  his- 
torical period,  it  is  no  wonder  that  Chinese  literature  has 
reached  the  highest  development. 

(5)  In  referring  to  fine  arts,  we  may  take  them  up  sep- 
arately. The  ancient  music  of  China  is  unknown,  but  its 
modern  music  is  inferior  to  that  of  the  West.  The  architec- 
ture of  the  present  day  is  not  good,  but  the  buildings  of  the 
Ch'in  dynasty  and  the  Han  dynasty  were  superior  even  to 
those  of  Greece.  In  later  dynasties  there  were  also 
many  good  buildings.     Unfortunately  there  is  no  proof  ex- 


CONCLUSION  727 

cept  the  description  in  books.  Sculpture  in  China  has  not 
yet  been  taken  up  by  a  high  class  of  people.  The  chief  ob- 
stacle to  the  development  of  sculpture  is  that  Chinese  custom 
has  not  permitted  the  nude  figure  to  be  exposed.  Painting 
has  suffered  from  the  same  disadvantage,  but  China  did 
produce  many  famous  painters.  Similar  to  the  art  of  paint- 
ing, the  Chinese  possess  one  kind  of  fine  art  which  is  pecu- 
liar to  them  only — penmanship.  It  is  regarded  as  equal  to 
painting. 

(6)  The  Chinese  system  of  government  is  moderate, 
democratic,  centralized  and  permanent.  Before  the  modern 
type  of  government  appeared,  it  was  the  best  type  of  gov- 
ernment that  had  existed  for  such  a  long  period. 

If  we  take  the  whole  history  of  China  and  compare  it 
with  the  whole  history  of  the  West,  the  Chinese  should  not 
be  ashamed.  The  civilization  of  the  Chou  dynasty  was 
better  than  that  of  Greece.  The  civilization  of  the  Han 
dynasty  was  better  than  that  of  Rome.  We  need  not  make 
any  comparison  with  the  Dark  Age.  The  great  trouble  has 
been  that,  when  the  Chinese  government  was  at  its  worst, 
the  modern  nations,  rising  just  a  little  earlier  than  China, 
entered  into  her  door  and  interfered  with  her  affairs. 
Therefore,  China  is  inferior,  in  some  respects,  to  the  West 
in  the  present  day. 

Now,  what  shall  China  do?  China  must  accept  all  the 
good  things  from  the  outside  world  and  retain  the  good 
things  of  her  own.  Should  China  adopt  Christianity  as 
her  state  religion?  No.*  The  Chinese  would  appreciate 
Christianity  only  from  the  ethical  standpoint.  But  the  eth- 
ical teachings  in  Christianity  are  not  so  many  as  those  in 
Confucianism.    In  a  word,  all  the  good  points  of  Christianity 

'  The  author  has  nothing  against  Christianity,  nor  ugainst  the  mis- 
sionaries, nor  against  the  native  Christians.  In  the  following  discus- 
sion he  has  sought  simply  to  tell  the  truth. 


728       THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

are  found  in  Confucianism,  and  besides,  Confucianism  gives 
still  more.  From  the  philosophical  standpoint,  Christianity 
is  not  so  deep  and  rich  as  Confucianism,  nor  as  Buddhism 
and  Taoism.  From  the  practical  standpoint,  Christianity  is 
not  so  human  or  so  related  to  man  as  Confucianism.  Hence 
it  is  extremely  difficult  to  convince  Chinese  scholars  to  be- 
come Christians.  When  it  comes  to  the  common  people,  it 
is  still  worse.  They  are  afraid  even  to  talk  about  the  word 
Christianity.  It  is  most  opposed  to  the  feelings  of  the 
people.  In  the  first  place,  it  is  antagonistic  to  their  ancestor- 
worship.  In  the  second  place,  it  has  been  introduced 
by  arms,  protected  by  treaties  and  extraterritoriality.  It 
has  cost  China  many  lives,  many  miles  of  land  and  many 
millions  of  dollars.  Many  missionaries  are  not  well  be- 
haved, and  interfere  with  the  people's  affairs,  such  as  law- 
suits and  religious  worship.  They  look  upon  themselves  as 
ambassadors,  and  take  advantage  of  the  officials  and  of  the 
people.  Therefore,  the  so-called  "  missionary  cases,"  of 
which  the  Boxers'  trouble  was  the  greatest,  have  occurred 
many  times.  In  the  third  place,  there  are  exceedingly  few 
Chinese  who  honestly  become  Christians.  Most  of  them  are 
converted  for  the  sake  of  two  things — protection  and  ad- 
vantage. If  weak  people  simply  seek  for  protection,  they 
may  still  be  good  citizens.  But  in  many  cases,  as  soon  as 
they  are  protected  by  the  church,  they  do  something  out  of 
revenge,  or  even  commit  great  wrongs.  And  sometimes 
they  were  outcasts  before  they  became  members  of  the 
church.  About  those  who  seek  for  advantage  we  need  not 
say  anything.  Therefore,  whenever  a  native  becomes  a 
Christian,  China  loses  a  citizen,  and  the  people  have  more 
trouble  brought  in  by  the  Christian. 

If  foreign  countries  really  care  for  the  spread  of 
Christianity,  they  would  be  much  wiser  to  let  the  Chinese 
alone.     Send  freely  the  Christian  Bible  to  every  Chinese. 


CONCLUSION 


729 


and  see  whether  he  will  accept  it,  but  do  not  convert 
him  by  force,  nor  by  appealing  to  his  self-interest.  By  so 
doing-,  missionaries  do  great  harm  rather  than  good  to 
Christianity;  but  foreign  countries  will  not  believe  this, 
because  the  missionaries  serve  as  a  means  of  exercising  in- 
fluence over  China.  ^  This  is  exactly  the  reason  that 
the  Chinese  will  not  accept  Christianity;  besides,  they  are 
not  satisfied  with  the  Christian  Bible.  Hence,  all  of  the 
foreign  religions  but  Christianity  have  acquired  a  foothold 
in  China  without  trouble,  and  even  Christianity  did  not 
bring  any  trouble  to  China  until  after  the  Opium  War. 
Therefore  the  Chinese  look  upon  the  missionary  cases  not 
as  religious  disputes,  but  as  political  uprisings. 

Some  Christians  say  that  China  cannot  become  a  strong 
nation  unless  she  be  a  Christian  nation.  This  is  quite  ab- 
surd. We  may  simply  point  out  some  historical  facts.  If 
Christianity  can  make  every  nation  strong  without  regard- 
ing other  elements,  why  did  the  Roman  Empire  fall?  Why 
have  Spain  and  Portugal  become  weaker?  Why  do  not  the 
nations  in  South  and  Central  America  become  strong? 
The  chief  maker  of  modern  nations  is  not  Christianity, 
but  militarism  and  industrialism.  Even  the  religious  revo- 
lution was  the  product  of  the  Renaissance.  We  are  sure 
that  Christianity  did.  and  does,  much  good  for  the  Chris- 
tian nations  and  for  the  world  as  a  whole,  but  there  is  no 
reason  to  think  that  only  Christianity  can  make  a  nation 
strong.  If  a  nation  cannot  be  strong  without  Christianity, 
why  was  China  strong  for  a  long  time  until  the  Opium  War, 
and  why  did  Japan  become  a  modern  nation?  The  origi- 
nators of  the  political  revolution  in  Ja])an  were  not  Christ- 
ians, but  Confucians.     Even  one  branch  of  Confucianism — 

'  Kvcn  Japan  has  tried  to  send  missionaries  to  China  in  order  \^ 
teach  the  Chinese  Buddhism — a  most  ridiculous  thing,  since  Japan 
got  I^uddhism   from  China. 


^30       THE  ECONOMIC  PRINCIPLES  OF  CONFUCIUS 

the  doctrine  of  Wang  Shou-jen — was  sufficient  to  trans- 
form old  Japan  into  modern  Japan.  Why  should  the  whole 
school  of  Confucius  not  be  able  to  modernize  China? 

The  future  of  China  is  bright.  With  an  uninterrupted 
history  extending  over  five  thousand  years,  with  an  intelli- 
gent, diligent,  prudent,  and  vigorous  people  of  four  hundred 
million,  with  an  extensive  but  connected  territory  of  four 
and  a  quarter  million  square  miles, ^  with  abundant  natural 
resources,  under  one  centralized  government,  one  uniform 
language,  one  highly-developed  religion,  one  national  idea, 
China  will,  without  doubt,  become  a  strong  nation, 
but  the  world  need  not  be  afraid  of  the  so-called  yellow 
peril.  China  will  indeed  adopt  both  militarism  and  indus- 
trialism. But  China  will  not  injure  anyone  not  Chinese  as 
the  western  nations  take  advantage  of  other  people.  After 
China  shall  be  strong,  the  Great  Similarity  of  Confucius 
will  come,  and  the  world-state  will  appear.  Then  the  broth- 
erhood of  nations  will  be  established,  and  there  will  be  no 
war,  but  perpetual  peace. 

^English   miles. 


Tabi 


Wa  of  Confucius 

2402-2288  B.  K. 

2287-2148 

2147-2048 

1806-1707 

1 704-1655 

1654-1215 

1215-571 

571-220 

B.  K.-303  A.  K. 
i'\i~7/i6  A.  K. 


Era  of  Christ 


2953-2839  B 
2838-2699 
2698-2599 
2357-2258 
2255-2206 
2205-1766 
I 766-1 122 
I 122-771 
770-249 

>-7 1  —-M^i^^— 


c. 


il 


APPENDIX  I       ^'b  I 

Table  of  Chinese  Chronology 


Era  of  Confuciu! 


the  Yin  dynasty 
the  Western  Chou  dynasty 
the  Eastern  Chou  dynasty 


Three  Dynasties 


Spring  and  Autumn  and  | 
Warring  States 


816-867    ■• 

265-316 

868971    " 

317-420 

971-1030  " 

420-479 

1030-1053   " 

479-502 

IOS3-II08    " 

502-557 

II08-1140      • 

557-589 

937-1085    ■■ 

386-534 

1085-1101      ' 

534-550 

I086-1108    " 

535-557 

JIOI-1128    " 

550-577 

Posterior  Liang 
Posterior  Tang 
Posterior  Tsin 
Posterior  Han 
Posterior  Chou 

the  Northern  Sung  dynasty 

Southern  Sung 


the  Yuan  dynasty 
the  Ming  dynasty 
the  Ts'ing  dynasty 


mplyt 


I  -phe  period  of  the  Five 
o(  time  most  ^""  elapsed. 
.Northern  Sung  dynasty: 
'  ,   Ch'i.  Liang  and  Ch. 


p^  ^ 


APPENDIX  II 
List  of  Authorities  in  English  and  Chinese  ^ 

1.  Analects  (Lun  Yii,  James  Legge's  translation  given  in  the  Chinese 

Classics,  vol.  i),  31. 

2.  Annotation  and  Explanation    of   the   Thirteen   Canons    (Shih   San 

Ching  Chu  Shu). 

3.  Biography  of  Noteworthy  Women  {Lieh  i\'ii  Chuan),  34. 

4.  Book  of  the  Lord  of  Shang  {Shang  Chiin  Shu),  412. 

5.  Book  on  the  Great  Similarity  (Ta  Tung  Shu),  71. 

6.  Canon  of  Changes  (Ft  King,  translated  by  James  Legge.  contained 

in  the  Sacred  Books  of  the  East,  edited  by  F.  Max  Miiller,  vol. 
xvi,  Clarendon  Press,   1882  A.  U.),  25-6. 

7.  Canon  of  Filial  Piety  (Hsiao  King,  contained  in  the  Sacred  Books 

of  the  East,  vol.  iii),  31. 

8.  Canon  of  History  {Shoo  King,  Chinese  Classics,  vol.  iii),  24-5. 

9.  Canon  of  Mountains  and  Seas  {Shan  Hai  Ching),  388. 

10    Canon  of  Poetry  {She  King,  Chinese  Classics,  vol.  iv),  24. 

11.  Canon  of  Rites  {Li  Ching),  25.     The  Chinese  have  made  the  great 

mistake  of  omitting  this  Canon  in  what  they  call  the  Fize  Canons, 
and  put  Younger  Tai's  Record  of  Rites  in  its  place.  The  number 
of  chapters  given  in  the  notes  refers  to  the  edition  of  the 
Annotation  and  Explanation  of  the  Thirteen  Canons. 

12.  Canonical    Interpretation    of    the    Ts'ing    Dynasty    {Huang    Ts'ing 

Ching  Chieh),  a  series  of  one  hundred  eighty  separate  books 
or  volumes,  7. 

13.  Cases  of  the  Institutes  of  the  Ts'ing  Dynasty  {Ta  Ts'ing  Hui  Tien 

Shih  Li),  659. 

1  This  is  by  no  means  a  complete  list  of  the  Chinese  books  utilized 
by  the  author,  but,  with  the  exception  mentioned  in  the  next  sentence, 
merely  a  list  of  those  books  whose  names  have  been  mentioned  in  this 
treatise.  Nos.  2,  15,  31  and  54  have  not  been  mentioned,  but  are 
printed  here  because  they  are  the  collective  names  of  a  series  of  books. 
The  figures  following  the  titles  of  the  books  refer  to  the  pages  of  this 
treatise.  In  the  first  list  is  contained  the  translation  of  the  titles  in 
linglish,  followed  by  the  Chinese  names  in  English  letters.  In  the 
second  list  the  titles  are  given  in  the  Chinese  cliaractcrs. 

7?3 


734  APPENDIX 

14.  Chuang  Tzu,  29. 

15.  Continuation  of  the  Canonical  Interpretation  of  the  Ts'ing  Dynasty 

(Huang   Ts'ing  Ching  Chieh  HsU  P'ien),   a  series  of  two  hun- 
dred and  nine  separate  books  or  volumes. 

16.  Continuation    of    the    General    Political    History    (Hsii    Tzu    Chili 

T'ling  Chien),  694. 

17.  Continuation  of  the  General  Research  on  Literature  and  Authori- 

ties  (Hsii  Wen  Hsien   T'ung  K'ao),  333. 
18..  Correction  of  the  Youth  (Cheng  Meng),  61. 

19.  Debate    on    the    Government   Monopoly    of    Salt    and    Iron    (Yen 

T'ieh  Lun),  477-^. 

20.  Elder  Tai's  Record  of  Rites  (Ta  Tai  Li  Ki),  31-2. 

21.  General  Discussion  in  the  White  Tiger  Palace  (Pai  Hu  T'ung),  62. 

22.  General  History  of  Institutes  (T'ung  Tien),  296. 

23.  General  Political  History  (Tzu  Chih  T'ung  Chien),  320. 

24.  General    Research    on    Literature    and    Authorities    (Wen    Hsien 

T'ung  K'ao),  300. 

25.  General  Research   on   Literature   and  Authorities   of   the  Present 

Dynasty  (Huang  Ch'ao  Wen  Hsien  T'ung  K'ao),  ZZZ- 
20.  Great    Commentary    of    the    Canon    of   History    (Shang    Shu    Ta 

Chuan),  89. 
27.  Han's  External  Commentary  of  the  Canon  of  Poetry    (Han  Shih 

Wai  Chuan),  197. 
2S.  Han  Fei  Tzu,  29. 

29.  Hsiin  Tzu,  ZZ- 

30.  HsiX  S hen's  Dictionary   (Shuo   Wen),  357.  ^ 

31.  Imperial  Edition  of  the  Seven  Canons  (Yil  Tsuan  Ch'i  Ching). 

32.  Institutes  of  the  Ts'ing  Dynasty   (Ta  Ts'ing  Hui  Tien),  685. 

33.  Ku-liang's  Commentary   (Ku-liang  Chuan),  32. 

34.  Kuan   Tzu,   141 -2. 

35.  Kung-yang's  Commentary    (Kung-yang  Chuan),   32. 

36.  Lao  Tzu  (or  Tao  Te  King),  iiS- 

Z7.  Law  Code  of  the  Ts'ing  Dynasty  (Ta  Ts'ing  LU  Li),  148. 

38.  Lieh  TzU,  72. 

39.  Many   Dewdrops   of   the  Spring  and  Autumn    (Ch'un   Ch'iu  Fan 

Lu),  58. 

40.  Meng  Tzu,  2>Z- 

41.  Mo  Tzu,  29. 

42.  Narratives  of  Nations  (Kuo  YU),  35. 

43.  New  Narrations  (Hsin  HsU),  34. 

44.  Official   System    of   Chou    (Chou   Kuan,    miscalled    Chou   Li),    35. 

The  number  of  chapters  given  in  the  notes  refers  to  the  edition 
of  the  Annotation  and  Explanation  of  the  Thirteen  Canons. 
45-  Oldest  Chinese  Dictionary  (Erh  Ya),  352. 


APPENDIX 


735 


46.  Park  of  Narratives  (Shuo  Viian),  34. 

47.  Plans  of  the  Warring  States  (Chan  Kuo  Vse),  478. 

48.  Record  of  Industry  {K'ao  Kung  Chi).  354. 

49.  Research  on  the  False  Bible  of  the  School  of  Hsin   (Hsin  Hsiao 

Wei  Ching  K'ao),  36. 

50.  Research    on    the    Reformation    of    Confucius    ( K'ung    Tcii    Kai 

Chih  K'ao),  30. 

51.  Seven  Adjuncts  {Ch'i  Wei),  2>Z- 

52.  Spring  and  Autumn   (Ch'un  Ch'iu,  Chinese  Classics,  vol.  v),  26-7. 

53.  Tso's  Commentary  (Tso  Chuan,  Chinese  Classics,  vol.  v),  35. 

54.  Twenty- four  Histories   ( Er  Shih  Szu  Shih),  a   series  of  twenty- 

four    different    histories,    e.    g..    Historical    Record,    History    of 
Han.     The  individual  names  are  omitted  in  this  list. 

55.  Younger   Tai's  Record  of  Rites   (Li  Ki,   contained  in  the  Sacred 

Books  of  the  East.   vols,  xxvii-xxviii).  31-2. 


7Z^ 


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INDEX 


A.  K.,  after  K'ung  Fu  Tzu  or  after 
Confucius,   5. 

Acre  or  mou,  421-2. 

Aesthetics,    principles   of,    250-9. 

Age,  of  maturity,  502;  classification 
of  people,  509;  law  of  North- 
ern Ch'i,  516;  table  of  limit, 
522;  limit  for  personal  service, 
661. 

Agriculture,  School  of,  42;  de- 
partment of,  73;  Confucius  re- 
fers to,  74-5 ;  not  mentioned 
in  the  nine  standard  rules, 
316-7;  ch.  XXI;  importance 
of,  380-3;  not  the  only  produc- 
tive occupation,  383-6;  science 
of,  384;  methods  of,  386-9; 
agricultural  life,  392-7;  com- 
pared with  commerce,  413;  not 
the  only  subject  of  political 
economy,  557. 

Ai,   duke  of  Lu,  64,  624-5. 

Ai  Ti,  of  Han,  507. 

Alexander,   320. 

"Alternative   fields,"  386-7. 

Alum,  tax  on,  704. 

Amoy,  689. 

An  Tzu  or  .An  Ping-chung.  8,  240; 
as  the  representative  of  parsi- 
mony, 242. 

.Vncestor-worship,  197,  728;  par-  , 
ticipated  in  by  woman,  153;  | 
expenditure  for,  283-8;  as  com-  I 
panion  of  God,  284-6;  reason, 
for.   287. 

Ancient  Literature.  School  of,  34- 
6,  46. 

Annam.  415,  575.  726. 

.■Annotation    of   Kung-yatig,    32. 

Annotation  of  the  Canon  of  Poetry,  \ 
36. 

Annotation  of  the  Canon  of  Rites.  \ 
36.  ! 


Annotation  of  the  Official  System 
of  Chou,  36. 

Annotation  of  the  Record  of  Rites, 
36. 

"Appendix "  of  the  Canon  of 
Changes  (Hsi  T'zii),  32,  40, 
52,   59.    120-128;   etc. 

.Appointed  people.  197-8. 

.Arbitration,  wishes  of  Tzu-kung, 
144. 

Archery,  one  of  the  six  arts.  12; 
game  of,  231-6;  description  of 
the  game  of,  232-3;  as  a  na- 
tional game.  233-4;  .great,  234; 
social.  234;  directed  by  Con- 
fucius, 234;  usefulness  of, 
234-6. 

.Architecture.  726-7. 

Aristocracy,  absent  in  Confucian- 
ism. 88;  absent  in  China,  92. 

Aristotle,  41. 

Artisans,  position  of.  406-7;  condi- 
tion of.  407-410;  under  public 
relief.  S97-^:  taxed  more  lightly 
than  merchants.  693-4. 

Augustan  age,  726. 

B.  K..  before  K'ung  Fu  Tzii  or 
before  Confucius,  5. 

Hale.  658. 

Banks,  government.  434-5.  554^  587- 
8;  "money  association,"  434; 
private  banks  of  the  people  of 
Shansi.  434 ;  banking  depart- 
ment, 589. 

Hible  or  Canons  of  Confucius.  23- 
4;  influence  of.  36-7;  accepted 
as  a  state  religion.  43 ;  as  a 
legal  code.  44;  as  a  profana- 
tion of,  719. 

**  Borrowing    field."    300,    381-2. 

Bounty,  theory  of  Liu  An,  560. 

Boxers'  trouble.  682,  728. 

737 


73^ 


INDEX 


Brokers,  tax  on,  695-6 ;  as  a  col- 
lector of  tax,  71 1-2. 

Buddha,  255. 

Buddhism,  44,  718.  729;  compared 
with  Confucianism,  191-2 ; 
compared  with  Christianity, 
728. 

Buddhist,  Confucius'  influence 
upon,  287 ;  church,  430 ;  as 
idler,    721. 

Budget,  two  divisions,  552-3 ;  mak- 
ing of,  608-12;  of  2462  A.  K., 
.  659,  687,  706,  709. 

Buildings,  absence  of,  119;  of  later 
ages,  120,  125 ;  comparison  be- 
tween China  and  Europe,  131- 
2,  726-7 ;  no  repair  in  bad 
year,  143 ;  no  construction  in 
bad  year,  204;  extravagance 
of,  245-6 ;  Confucius'  house, 
256;  of  Hsiian  Wang,  257;  de- 
scription of,  257-9 ;  Brilliant 
Hall,   259;   height  of,   261-2. 

Bushel  or  hu,  421. 

Business  taxes,  691-4,  713. 

Caesar,  320. 

Canals,  Han  Canal,  419;  Imperial 
Canal,  419-20 ;  Tung-chi  Canal, 
419 ;  Yung-chi  Canal,  419-20 ; 
Southern  Canal,  420;  transpor- 
tation of  rice,  644-6. 

Canon  of  Changes,  12,  25-7,  46,  59; 
principle   of,    122-3  J    ^tc. 

Canon  of  History,  8,  11-2,  20,  24-5, 
46,  63,  73,  77,  244-5,  etc. 

Canon  of  Music,  8,  11-2,  25,  226. 

Canon  of  Poetry,  8,  11-2,  24  64,  66, 
77,  81,  90,  95,  149,  152,  153, 
154  156,  238,  249,  257,  393-5. 
630-2,  etc. 

Cantillon,  490. 

Canton,  483,  566,  601,  687,  689,  700. 

Capital,  294,  355-62 ;  importance  of, 
177;  industrial,  318;  the  word, 
355-7;  as  important  as  labor, 
405 ;  accumulation,  180,  457 ; 
grain  as,  580-2. 

Capitalist,  Chinese  view  toward,' 
700-1,  722. 

Carriages,  tax  on,  692-3. 

Catholics,  86. 

Catty  or  chin,  421,  422. 

Cha,  205,  227-8. 

Chang   Chung-yen,   685. 

Chang-chii,  388. 

Chang  Heng,  415, 


Chang  Hsiian,   537, 

Chang  Hung,   7, 

Chang    Shih,    191. 

Chang  Ti,  of  Han,  650. 

Chang  Tsai,  60. 

Chang  Yung,   433. 

Chang  Yii,  507. 

Chang  Yiieh,   665. 

Ch'ang-sun  P'ing,  578. 

"  Changelings,"      name      of      paper 

money,  433,  434  442. 
Chao  Sh'i,  328. 
Chao  the   Great,  210. 
Chao    Tso,    304-5,    312,    360,    382-3, 

395-7- 

Charity,  foolish  generosity  and  un- 
wise alms  not  approved  by 
Mencius,    103-4;   private,  600-1. 

Che  Tsung,  of  Sung,  592. 

Chekiang,  657. 

Chemistry,  agricultural,  388. 

Chen,  state  of,  11;  a  noble  family 
of  Ch'i,  582;  dynasty  of,  68j. 
711. 

Chen  Hsiang,  426,  485-6. 

Chen  Huan,   356. 

Chen   Tsin,    104. 

Chen  Tsung,  of  Sung,  572. 

Cheng,  state  of,  tunes  of,  74,  218, 
226;  development  of  the  tunes 
of,  225;  knife  of,  404;  com- 
mercial state,  218;  comrnercial 
and  democratic  state,  455-6. 

Cheng  Chung,  432,  454. 

Cheng  Hsiian,  35-6,  474,  581,  630-1. 

Ch'eng,  duke  of  Lu,  661. 

Ch'eng-feng,  65. 

Ch'eng  T'ang,  one  of  the  Three 
Kings,  6,  19,  29,  78,  360,  610. 

Ch'eng  Ti,   of  Han,   507. 

Ch'eng  Tsu,   of  Ming,  656. 

Ch'eng  Wang,  of  Chou,  6,  19,  610; 
mother  of.  137. 

Ch'eng  Yi,    148. 

Chenkiang,  420. 

Chent'ao,  566. 

Chi,   state  of,   28. 

Chi-chi,  65. 

Chi  Jan,  economic  theory  of,  457- 

Chi-sun,  no,  465,  627. 

Ch'i,  state  of,  8,  9,  43;  chief  state 
for  industry  and  commerce, 
128-9;  573,  695.  701.  _ 

Chia,  group  of  ten   families,   583-4. 

Chia  K'uei,  389-90,  429. 

Chia  Ts'ing,   593. 


INDEX 


73  > 


Chia  Yi,   113,  262,  359-60,  439,  440. 

Chiao  Ko,   373- 

Chieh,  607,  628. 

Chieh-ni,   388. 

Chih,  music-master,   216. 

Ch'ih  Jen,  405. 

Ch'ih  Yu,  415. 

Children,  treatment  of,  265-6;  fed 
by  the  king  of  Viich,  323. 

Chill  Shih,  92. 

Ch'in,  state  of,  43,  308,  404  506,  649; 
dynasty  of,  34,  43,  46,  130,  174, 
299-300,  376.  430.  459,  A70,  596, 
664,  684,  722,  726. 

China,  history  before  Confucius' 
time,  4;  in  Confucius'  time,  17; 
national  spirit  of.  212-3;  na- 
tional expansion  of,  557-8. 

Ching.  duke  of  Ch'i,  113. 

Ching,  prince  of  Wei,  207-8. 

Chiiig  chi,  48-9. 

Ching  Chiang,  348. 

Ching  Ti,  of  Han,  360,  397,  440. 

Ch'iu.  a  surname,  409. 

Ch'iu,  personal  name  of  Confucius, 

7. 

Ch'iu   Chiin,   573. 

Chou.  last  emperor  of  the  Yin 
dynasty.  62 ;  the  strongest  ex- 
ample  of   extravagance.   246. 

Chou,  Duke  of,  4,  6.  19.  35.  128, 
285.  353,  393.  415.  587.  610,  627. 

Chou  dynasty,  4;  Eastern  Chou 
line.  5;  15,  29,  74;  beginning 
of,  128-9,  33^\  foundation  of, 
393-5;  industry  of.  401-3;  428- 
9,  430.  432.  481-2,  499- SO  I,  582, 
587,  588.  621-2,  630,  662-4,  ^77, 
691-2,  702,  711,  727. 

Chou   Tun-yi.    186. 

Christianity,  compared  with  Con- 
fucianism, 61.  86,  159-60.  192- 
4.  727-8;  could  not  be  state  re- 
ligion of  China,   727-30. 

Christians.   Chinese.   728. 

Chu,  421,  432. 

Chu    Hsi.   45.   526.   577.   552-5. 

Chu-ko  Liang.  416. 

Chu   Ts'ing,   537. 

Ch'u,  state  of.  10,  11,  43,  308,  390, 
429. 

Cli'iian   Wan-chi,   705. 

Chuang-lich  Ti.  of  Ming.  657. 

rhuang  Tzu.  29,  282. 

Chung-kung,  46. 

Chung-mou,  name  of  city.  8. 


Chung-ni,      designation      of      Con- 
fucius, 7. 
j  Chung-shu    Yu-he,    536. 
I  Chung-tu,   name   of   city.   8. 
j  Chung-tzu,  65,  466. 
I  Church,  no  taxing  power,  648. 

Civil-service  competitive  examina- 
tions, 90,  719. 

Clan   system,    167. 

Clark.   J.    B.,    181. 

"  Code  of   Po,"  24-5. 

Commerce,  functions  of.  73;  rt- 
f erred  to  by  Confucius,  74-5; 
resort  of  the  poor,  178;  ch. 
XXIII;  importance  of.  41 1-3; 
compared  with  agriculture, 
413;  commercial  regulations. 
445-9;  theory  of,  553-4. 

Communication.  414. 

Communistic  idea.  466-7. 

Competition,  should  not  be  abso- 
lutely free.  168-170;  not  very 
sharp  in  China.  175;  results  of 
free,  178,  179. 

Confucianism.  4,  31,  32;  influence 
of,  36-7:  economic  teachings. 
37;  historical  movements  of. 
ch.  IV;  the  word,  39;  as  a  new 
religion.  40-42 ;  struggled  with 
other  religions.  42-3;  as  a  state 
religion,  43;  during  the  Han. 
43-4;  decline  of.  44-5;  from 
the  Sung  to  the  Ming.  45 : 
renaissance  of.  in  the  present 
dynasty.- 45-6:  summary  on  his- 
torical movements  of.  46;  de- 
velopment of,  hampered  by 
the  government.  47;  future  de- 
velopment of.  47 ;  theory  of 
creation.  58;  highest  theologi- 
cal stage.  59;  doctrine  of  trin- 
ity. 60;  freedom  of  thought. 
61;  freedom  of  belief.  84-5: 
no  conflict  with  science,  85-6; 
no  conflict  with  politics.  86-7: 
key  to  the  ethical  teachings  of 
1 17-8;  as  a  religion  of  the 
economic  world.  127;  final  aim 
of,  i.y);  cosmopolitanism,  141; 
golden  mean.  175;  more  hu- 
man than  any  other  reliwi.ii 
186;  compared  with  Huddhi  m 
161-2;  compared  with  Chris 
tianity.  61.  159-60.  192-4,  727 
8;  first  step  to.  208-0:  a  great 
philosophy,  557;  as  a  check  to 


740 


INDEX 


economic  progress,  718;  not 
truly  followed  by  China,  720; 
as  the  best  religion,  726. 

Confucians,  compared  with  the 
priests  and  ministers  of  Chris- 
tianity, 39;  divided  into  ei^ht 
branches,  43 ;  common  point 
of  economic  theory  of,  179; 
in  a  poor  condition,  209-10. 

Confucius,  life  of,  ch.  I ;  time  of, 
4-6;  birthplace  of,  6;  ances- 
tors of,  6;  birthday  of,  7;  as 
a  teacher,  7-8;  visit  to  the  im- 
perial capital,  7-8;  went  to 
Ch'i,  8;  prepared  the  Canons, 
8;  considered  accepting  the 
invitations  of  the  rebels,  8; 
political  career  of,  8-9;  travels 
of,  9-1 1 ;  relation  of,  with  God, 
lo-ii;  teachings  of,  12;  pupils 
and  followers  of,  12;  death  of, 
12;  worship  of,  13;  descen- 
dants of,  13 ;  as  a  founder  of 
a  great  religion,  13-4;  funda- 
mental concepts  of,  ch.  II ; 
writings  of,  11-2,  23-30; 
methods  of,  27-8;  character  of 
his  writings,  28-30 ;  claims  of, 
30;  influence  of,  2>(i-7 ;  not  pri- 
marily an  economist,  2>7  \  a  re- 
ligious reformer,  40-42 ;  strug- 
gling for  the  captured  game, 
106;  wishes  of,  144-5,  600;  as 
an  evolutionist,  168;  system  of, 
189-90;  in  a  poor  condition, 
213-4;  taste  and  work  of,  on 
music,  216-8;  food  of,  251; 
dress  of,  253-4;  house  of,  256; 
standard  of  living  of,  263-4; 
a   good   worker,   Z73y   ^ic- 

Conscience,    102-3. 

Constantly  normal  granary,  sys- 
tem of,  561,  571-7,  589. 

Consumption,  social  control  of, 
196-200;  relation  to  distribu- 
tion, 196,  199;  relation  to  pro- 
duction, 182,  199-200;  financial 
control  of,  200-2 ;  according  to 
times,  202-5 ;  according  to 
places,  205-6;  of  rich  and  poor, 
ch.  XIII;  conclusion  on,  717-8; 
socialistic,  724. 

Contentment  with  means  pos- 
sessed,  207-8. 

Co-operative  production,  504. 

Copyright,    537. 


Corea,  726. 

Corporation,  454-5,  696. 

Creation,    58-9. 

Creatures,   conservation   of,   345-6. 

Credit,   587-8,   589. 

Crop,  effect  in  consumption,  204-5  J 
two-crop  system,  388-9;  effect 
in  public  labor,  663-4. 

Cultivation,  by  pairs,  387-8;  with 
ox  or  cow,  388;  extensive  and 
intensive,  389-391. 

Customs_  duties,  454,  683-4,  7'^Z\ 
on  internal  trade,  684-7;  on 
imports,  687-91 ;  duty-free 
goods,  690;  on  transit,  690; 
on  exports,  691. 

Dance,  two  kinds  of,  223;  origin 
of  Chinese  drama,  224;  rela- 
tion to  singing,  224;  not  taken 
by  women,  225 ;  taken  by  man 
and  woman,  225. 

Dead,  having  no  knowledge,  279. 

Demand  and  supply,  423-5,  457; 
government  control  of,  ch. 
XXIX. 

Democracy,  62,  7z,  77-9,  88,  92-3, 
152;  taking  people  for  the  par- 
ticipation of  pleasure  of  a 
ruler,  238-9;  industrial,  406; 
covenant  between  ruler  and 
merchants,  455 ;  banishment  of 
the  emperor  by  the  people, 
534;  Confucius'  policy,  544;  re- 
sponsible ministry,  610 ;  people 
as  tax-controllers,  622-3. 

Diminishing  returns,  347,  391-2, 
706,  717. 

Diplomacy,  School  of,  42 ;  of  Tzu- 
ch'an,  455-6. 

Distribution,  a  function  of  the 
state,  171;  unequal,  174;  com- 
paratively equal  in  China,  175, 
723 ;  under  free  competition, 
178-9;  relation  to  production, 
181 ;  relation  to  consumption, 
196;  Confucius'  view,  310; 
general  principles  of,  460-8; 
according  to  equality,  460-5 ; 
class  struggle,  462-3 ;  psycholo- 
gical view,  463-4;  international 
view,  464-5 ;  according  to  pro- 
ductivity, 465-6;  according  to 
need,  466-8;  law  of  Heaven,. 
547 ;  socialistic,  chs,  XXVI- 
XXXI,  724. 


INDEX 


741 


District-drinking,  as  one  way  of 
getting  pleasure,  227-231  ;  for 
four  occasions,  227;  descrip- 
tion and  explanation  of,  228- 
231 ;  economic  principle  of,  230. 

Divorce,  seven  grounds  for,  148; 
three  considerations  of,  148; 
corrupt  custom  of,  149;  issued 
to  woman,   150;  rare  in  China, 

151. 
"Doctrine    of    the    Mean,"    ''Chung 

y'uHg"),  13.  127,  etc. 
Doctrine    of    Music,     (Yi'ieh     Yii), 

554-5- 

Door  tax  or  family  tax,  cause  of 
inaccurate  census,  335,  655 ; 
abolition  of,  338,  672;  origin 
of,  635;  of  Tang,  650;  of  Han, 
671 ;  of  Wei,  671 ;  of  Tsin,  in- 
cluded land  tax,  671 ;  gradation 
of.  671;  of  Yiian.  671-2;  con- 
clusion on,  672. 

Drama,  origin  of,  224. 

Dress,  of  root-grubbing  period  and 
of  later  ages,  119-20;  change 
from  savage  life  to  civilized 
life,  123-4,  126;  comparison  oe- 
tween  China  and  Europe, 
130- 1 ;  work  of  woman,  152-3; 
system  of,  197,  254-6;  of  Con- 
fucius, 253-4;  of  young  men 
and  women,  264-5. 

Drink,  252;  of  water,  201,  213. 

Economic  development,  woman  as 
a  promoter  of.  68;  government 
as  a  promoter  of.  76-7 ;  test 
of  a  good  government.  91 ;  ch. 
TX ;  root-grubbing  period,  119- 
120;  hunting  and  fishing  stage 
and  pastoral  stage.  121 ;  agri- 
cultural stage  and  primitive 
commercial  stage,  122,  126; 
primitive  industrial  stage,  126; 
national  economy,  129;  world 
economy,  129;  stages  of,  129- 
30 ;  comparison  between  China 
and  Europe,  130-132;  capital- 
istic stage,  173-4,  179;  handi- 
craft stage,  410;  coming  to 
modern  factory  system,  410; 
during  the  Yii  dynasty.  640-1, 
643;  reasons  of  slow.  96-7, 
718-23;   socialistic.  723-5. 

Economics,  to  other  sciences  in 
general,  ch.  V;  definition  of, 
48-9;   the  term  in  Chinese.  48- 


9;  and  sociology,  ch.  VI;  basis 
of  sociology,  52-7;  basis  of 
relieion,  57;  basis  of  politics. 
73-6;  Confucius'  political 
economy,  79;  basis  of  ethics, 
94-7;  as  the  first  item  of  re- 
formation, 96;  harmony  with 
ethics,  97-101 ;  choice  between 
economic  life  and  ethical  life, 
101-3;  identification  with  the 
doctrine  of  filial  piety,  157; 
divisions  ot,  180-2;  household 
economy.  207-8 ;  music  as  the 
greatest  principle  of,  222-3. 

Economy,  79,   361-2.  612-3. 

Education,  71  ;  religion  included. 
82;  universally  free.  82-4;  local 
school.  83;  different  grades  of 
schools.  83 ;  training.  83-4 ;  ex- 
aminations, 84;  election  sys- 
tem. 87-93;  gestatory.  136-7; 
family.  137-8,  371  ;  archery, 
234-6;  industrial.  409;  econo- 
mic condition  as  the  basis  of. 
467-8;  as  a  solution  of  wages 
problem.  493-6;  political.  660; 
chief  cause  for  the  weakness 
of  China,  716;  of  farmers,  arti- 
sans  and   merchants.   720. 

Eight  objects  of  government,  50-51. 

Eight  rites.   25. 

Eight  trigrams.  26.   121. 

Election.  87-93.   236. 

Elizabethan   age,   726. 

Ely,  R.  T..  51. 

Emperor,  not  the  head  of  the 
church.  61;  merely  a  title.  62; 
as  a  farmer,  152;  parent  of  the 
people.  172;  salary  of.  49J ; 
excluded    from   economic   field. 

545- 
Empress,  as  a  weaver.   152-3. 
England.    318.   690.    691  ;    compared 

with       China.      93;       imported 

opium  by   fierce.   710. 
I  Epicureanism,   116. 
:  Epicurus,  42. 
Equal     transportation,     system    of. 

355-6;    administration    of    Liu 
i  An.  559-63;  plan  of  Wang  .-\n- 

I  shih.    563-4;    in    harmonv    with 

the  "  Tribute  of  Yii."  643. 
j  Equality,     universal.     61-2;     soci.il. 
I         368;  economic.  544. 
I  Ethical    Culture    Society.   41. 


742 


INDEX 


Ethics,  to  economics,  49-50,  ch. 
VIII;  compared  with  law,  81- 
2 ;  economics  as  the  basis  of, 
94-7 ;  harmony  with  economics, 
97-101 ;  choice  between  eco- 
nomic life  and  ethical  life, 
101-3;  economic  progress  and 
moral  perfection,  136 ;  com- 
bined with  economics,  189-90; 
self-control  of  wants,  195-6; 
happiness  of  the  poor,  208-15; 
checked  production,  718; 
highest    moral    standard,    726. 

Europe,   92,    130-2,   320-1. 

Evolution,  doctrine  of,  26.  122-3, 
168-170. 

"Evolution  of  Civilization"  ("Li 
Yiin"),  59,   119-20,  etc. 

Exchange,  a  part  of  production, 
181 ;  included  in  the  term  com- 
merce, 411;  system  of  Ex- 
changes,   565-7,    592-3. 

Excise  taxes,  696-711,  713;  gen- 
eral, 696-700;  not  in  harmony 
with  Confucius'  principles, 
696-7;  special,  700-711;  theory 
of  Li  Yii,  708. 

Exemption,  of  taxes,  632-3,  634. 
662,    674,   680,    688-9,    721. 

Expenditures,  general  standard  of, 
ch.  XV;  particular,  ch.  XVI; 
according  to  income,  610-1. 

Explanation  of  Mao's  Commentary 
of  the  Canon  of  Poetry  (Shih 
Mao  Shih   Chuan   Shu),   356. 

Extreme  North,  a  Utopian  state,  72. 

Extreme    Peace   Stage,    135-6. 

Factories,  development  in  Yin, 
400-1;  in  Chou,  401-2;  in  all 
the  four  dynasties,  402-3 ;  gov- 
ernment,   407-8. 

Faculty  theory,  579-80,  623-4, 
634,   642,  651,  653,  653-S. 

family,  18-20,  70-72;  the  smallest 
economic  organization,  145- 
167 ;  the  term,  146,  502 ;  happy 
life  of,  146;  Chinese  type, 
163-7;  of  the  virtuous  men, 
212;  perpetuation  of,  328-9; 
monopoly  of,  539. 

I^'amine,  436-8,  448,  454,  570,  578, 
697. 

Fan  Ch'ih  or  Fan  Hsii.  375,  384. 

Fan  Li,  457-8,  459,  568. 

Fang,  name  of  city,  6. 


Farmers,  being  students  at  the  same 
time,  90;  in  the  end  of  the 
Chou  dynasty,  268;  as  the 
second  group  of  people,  367 ; 
in  the  beginning  of  the  Han 
dynasty,  396-7;  conditions  of, 
573-4;  government  loans  to, 
586. 

Farming-out  of  the  commodity 
tax,  698-700. 

Fate,  doctrine  of,  106-111;  defini- 
tion of,  106;  three  kinds  of, 
107;  three  viewpoints,  107; 
subject  human  nature  to,  107- 
8;  passive  policy,  108-9;  ac- 
tive policy,   109-111. 

Father,  no  absolute  power  over  his 
son,  62. 

Fei,  name  of  city,  8. 

Fenhu,  name  of  state,  its  wood 
for  arrow,  404. 

Feudalism,  5  ;  "  Essay "  on,  55-6 ; 
78,  529,  543-4,  596,  627;  differ- 
ences between  absolute  mon- 
archy and,  299-300,  527,  528, 
596,  678. 

Filial  piety,  19,  112;  relation  of 
father  and  son,  155-167;  great 
filial  piety,  156;  doctrine  of, 
156-163,  328-30;  summary  of 
the  duties  of  a  son,  156-7;  of 
the  common  people,  157 ;  sup- 
port of  parents,  158-163)  five 
unfilial  things,  158-9;  parents 
and  wife,  159-60;  filial  daugh- 
ter, 161 ;  love  for  trees  and 
animals,  193;  of  the  poor,  201; 
service  of  parents,  265 ;  return 
to  the  parents,  329-330;  of  the 
feudal  princes,  361. 

First  Emperor  of  the  Ch'in  dynasty, 

43,  459,  506-7. 
Fishery,   tax   on,   695. 
Five    Barbarians,     disturbances    of 

the,  378. 
Five  blessings,    170-2. 
Five  Canons,  25,  27,  31,  '^ig. 
"  Five  chu,"  name  of  coin,  431. 
Five   colors,    190. 
Five    Dynasties,    45.    659,    670,    6S^, 

704,  707. 
Five   elements,   340-1. 
Five  equalizations,   554-5,  558,  589. 
Five  grains,   382,   503. 
Five  moral   constants,    19-20. 
Five  notes,   190. 


INDEX 


743 


Five  social  relations,   19-20.  25. 

Five   tastes,    190. 

Flemish  workmen,  318. 

f'oochow,  689. 

Food,  of  root-grubbing  period. 
119;  of  later  ages,  120;  in- 
ventor of  kitchen  and  cook- 
ery. 121;  rehnement  of,  124; 
comparison  between  China  and 
Europe,  130;  work  of  woman. 
152;  eating  of  meat,  193-4;. 
of  Confucius,  251;  and  art  of 
cooking.  251-3;  of  different 
classes,   261 ;   of  the  old,  266-7, 

Food  and  commodities,  50 ;  '*  Re- 
cord "  of,  51. 

Foot  or  chih,  421.  422. 

Forced-labor  emancipation  law, 
666-7.  673-6. 

Foreign  debt,  682. 

foreigners,  in  China,  315;  pro- 
tected at  the  expense  of  the 
Chinese,  690. 

Forests,  conservation  of,  346;  gov- 
ernment   monopoly   of,    701. 

Forest  of  K'ung,   12. 

Four  Books   iSzu  Shu),   719. 

Four  groups  of  people.  367-9; 
equally  useful  to  society,  412; 
social  prejudice  toward.  720. 

"  Four  Seas."  642. 

Frankincense,  tax  on,  709. 

Free  distribution,  compared  with 
selling  at  a  low  price.  560-1. 

Free  granary,  system  of,  577-80. 

Free  trade,  on  exportation.  452, 
453;  doctrine  of,  453-4;  of  salt, 
562 ;  practiced  by  Ch'in,  Han, 
Wei,  Tsin,  684 ;  pracnced  by 
Kin.  684-5:  of  rice.  689;  of  cer- 
tain goods.  690;  practically 
adopted  in  maritime  customs, 
691. 

Freedom.  of  movement  and 
speech.  6;  of  thought.  47.  61; 
of  speech.  80-81 ;  of  belief.  6r. 
84-5;  economic,  179-180;  of 
movement.  31 1-2;  of  occupa- 
tion. 369-371. 

Fu.  professor.  89. 

Fu  Yiieh.  7,7;^.  481.  610. 

Funeral,  expenditures  for.  201,  272- 
283 :  reasons  for  an  expensive. 
274-8. 

Gabelentz.  G.  von  der.  on  Con- 
fucius, 3-4. 


General  property  tax.  objections 
to,  652-3 ;  came  from  the  fam- 
ily tax.  671-672;  as  an  addi- 
tion to  the  land  tax,  672;  first 
applied  to  the  whole  empire. 
672;  of  Tang,  672-3;  of  Sung, 
673-6;  of  Kin,  677;  did  not  ex- 
ist after   Kin.  677. 

Generalization.  School  of.  42. 

George.    Henry,   296,  489.  533. 

Giddings.  F.  H.,   156. 

Ginseng,   tax  on.  709-10. 

God,  relation  with  Confucius,  10- 
II,  13-14;  meaning  of  the 
word,  20-21.  with  the  word 
Viiau,  58-9;  man  as  his  assis- 
tant and  co-ordinate,  59; 
fatherhood  of.  60 ;  everyonej 
the  son  of,  61 ;  all  men  chil- 
dren of.  62;  helps  only  the 
strongest,  169;  relation  with 
father  or  ancestor.  284-6. 

Gold,  present  to  Nfencius,  104;  as 
a  standard  of  money.  428; 
ratio  to  silver  and  copper.  420: 
decrease  of  quantity,  430;  ratio 
to  copper.  545 ;  ratio  to  copper 
and  rice,  656.  , 

Golden  mean.  14:  ior  distribution. 
173;  for  consumption.  203;  for 
social  institutions,  241 ;  for 
consumption.  242-3  ;  for  funeral 
and   mourning.  2S3. 

Goods,  economic  and  free.  424-5; 
sent  as  tribute.  641. 

Government,  mixed  with  religion. 
4;  monarchical.  19.  78;  influ- 
ence on  religion.  47 ;  eight  ob- 
jects of.  50-51 :  existed  for 
economic  reasons,  73-6;  as  a 
promoter  of  economic  life. 
76-7;  general  principles  of. 
77-82;  state.  79;  local.  79-80: 
dependent  on  man.  S7 ;  effect  of 
eood.  96:  three  requisites  of. 
loi  ;  regulation  of  economic 
life.  168-175;  final  end  of. 
170-r;  ideal  form  of.  171-2; 
difference  between  modern 
and  ancient.  174;  nine  stand- 
ard rules  ot.  316-7:  under 
Confucius'  influence.  335-6; 
control  of  industries.  407-8; 
theory  of  Wei  Chi-tsung.  565 ; 
modern  democratic.  596;  ob- 
stacle    to     centralization.    637 ; 


744 


INDEX 


inefficient,  722;  the  Chinese 
type  as  the  best  in  the  past,  727. 

Grain,  as  capital,  358-60;  five 
kinds,  382 ;  poHcy  of  giving 
high  value  to,  383 ;  as  money, 
437 ;  free  exportation  of,  452 ; 
for  salaries,  480;  government 
control  of,  ch.  XXX ;  equali- 
zation of  the  price  of,  457, 
568-77 ;  government  transpor- 
tation of,  571 ;  distribution  of, 
577-80;  government  loans  of, 
580-2 ;  system  of  village  gran- 
ary, 582-5 ;  free  importation 
of,  689. 

Grand  Summit,  59. 

Great  entertainment,  67. 

Great  floods,   342. 

"Great  Learning,"  {"  Ta  Hsiao'') 
63,  74,  77-^,  97-9,  127;  outline 
of,  139-140;  140-2,  151,  180, 
293,  546. 

"  Great  Model,"  24-5,  46,  50-51,  57, 
170-2,    614. 

Great  Scholars,  Board  of,  43. 

Great  Similarity,  17-20,  46,  47,  57, 
70-72,  135,  730. 

Great   uniformity,   57,   307. 

Grand   Unity,  59. 

Greece,   131,  379,  481,  726,  727. 

Greeks,   320-1. 

Green  sprout  money,  compared 
with  the  village-granary  sys- 
tem,   584-5;    system   of,    589-92, 

594-5- 

Gresham's  law,  430-1,  444-5. 

Hales,  625. 

Han,  a  noble  family  of  Cheng,  582. 

Han  dynasty,  zz,  34,  42,  43,  44,  46, 
92,  129,  130,  333.  334,  430,  541, 
617,  646,  669-70,  678-9,  683,  695, 
707,   719,   722,   726,   727. 

Han  Fei  Tzu,  29,  43,  150. 

Han  Fu,  495. 

Han  River,  703. 

Han  Ying,   197. 

Han  Yii,  44,  495. 

Hanchung,   703. 

Hangchow,  302,  420,  566,  687. 

Helen,  67. 

Hire  system,  481-2. 

History,  economic,  51;  economic 
interpretation  of,  120-6;  inter- 
preted by  the  figures  of  popu- 
lation, 336-7;  summary  of 
Chinese,   725-7. 


Ho,  or  Huang  Ho,  or  Yellow 
'River,  418. 

Ho  Hsiu,  32,  58,  466,  503. 

Ho-po-so,  695. 

Ho  Yi-sun,  432. 

Hongkong  and  Shanghai  Bank,  682. 

Horse,  for  transportation,  124,  415; 
"  horse  interest,"  693. 

Hou  Chi,  285,  386,  387. 

House  tax,  677-8,  680,  714;  ground 
tax,  635-6;  tax  upon  the  build- 
ings of  merchants,  691-2. 

Hsia  dynasty,  15,  28,  29,  74,  176, 
_  428,  429,  498,  621,  62,7. 

Hsiang  An-shih,   357. 

Hsiao-wen  Ti,  of  Northern  Wei» 
_  510-6,  517-8. 

Hsieh,  name  of  city,    104. 

Hsieh   Hsiang,   564. 

Hsien  Kao,  saved  the  country,  456. 

Hsien  Tsung,  of  Tang,  432,  572,  636. 

Hsiho,  566. 

Hsun  Tzu,  33-4,  39,  43,  46,  52-3, 
88,  135,  187,  188,  343-4,  362, 
453,  460-1,  494,  625-6,  etc. 

Hsun   Yiieh,   522-4. 

Hsii  Hsing,  385,  485-6,  606. 

Hsii  Kan,  300. 

Hsiian,  king  of  Ch'i,  75,  etc.;  duke 
of  Lu,  649. 

Hsiian  Ti,  of  Han,  478,  571. 

Hsiian  Tsung,  of  Tang,  520,  572, 
665. 

Hsiian  Wang,  257,  381. 

Hu,  where  the  Huns  lived,  404. 

Hu  Yin,  550-1,  578. 

Huan,  duke  of  Ch'i,  173;  duke  of 
Cheng,  455. 

Huan  K'uan,  478,  557. 

Huan  Ti,  of  Han,  650,  705. 

Huan  Tui,   lo-ii. 

Huang-fu   Mi,   ZZ3>' 

Huang  Ssii-yung,  682. 

Huang  Ti,  122-6,  353,  415,  420, 
497-8.    638. 

Huang  Tsung-hsi,  45. 

Human  nature,  change  of,  135-8; 
view  of  Confucius,  135 ;  view 
of  Hsun  Tzu,  135;  view  of 
Mencius,  135;  selfish,  170;  view 
of  Adam  Smith,  493. 

Human  wants,  176,  185-7;  char- 
acteristics of,  187;  sat'sfaction 
of,  188-194;  regulation  of,  195- 
206;    moral   control,    195-6;   so- 


IXDEX 


745 


cial    control,    196-200;    repress- 
ing, 248. 

Hui,  king  of  Liang,  96,  99,  238, 
308,  571 ;  duke  of  Lu,  466. 

Huns,  130,  360,  376. 

Hunting,   239-241. 

Hwai,  name  of  river.  418,  419. 

Imperialism,  313,   531. 

Income  tax,  589,  635,  673,  678-80, 
714. 

Independence,   individual,   62-3. 

Incorporation    fees,   696. 

Indirect  taxes,  abolition  of,  634; 
ch.  XXXV;  did  not  exist  in 
some  periods,  683;  conclusion 
on,   713. 

Individualism,  of  Confucius,   18-20. 

Individualistic,  504-5. 

Industry,  referred  to  by  Confucius, 
74-5 ;  in  the  earliest  period, 
126;  ch.  XXII;  the  word.  398; 
importance  of,  318,  398-9, 
406-7;  divisions  of,  399-403; 
in  Yin,  399-401 ;  in  Chou,  401- 
2;  subject  to  government  pro- 
motion. 402-3 ;  four  elements 
of,  403-5;  government  control 
of,  407-8;  dehniiion  of  the' 
word,  408. 

Inheritance  tax,  681,  714. 

Interest,  mixed  up  with  the  word 
profit,  472;  justification  of,  472- 
4:  rate  of,  473-5;  against 
usury.  580-2;  required  by  the 
government.  587-8,  589;  rates 
of.  583.  585.  589,  590,  593.  594, 
624;  tax  on,  679;  "horse  in- 
terest," 693. 

International  relation.  16-20,  140-2, 
315-551. 

International  trade,  one  of  the  nine 
standard  rules,  449-50;  based 
on  geographical  difference  of 
economic  conditions,  450-1 ; 
old  characteristic  of,  451 ; 
within  the  Chinese  world,  451- 
2;  the  term.  452;  commercial 
treaty.  452-3;  free  exportation 
of  grain,  452 ;  peace  made  with 
barbarians.  452;  free  exporta- 
tion in  general,  453;  free-trade 
doctrine.  453-4;  customs  duties, 
454.  687-91  ;  importation  of 
rice.  575.  680.  690;  germ  of 
protection.  088. 


Interpretation,  of  the  writings  of 
Confucius  and  his  disciples, 
37-8. 

Inventions,  technical,  119;  of  earli- 
est times,  120-5;  basis  of  civili- 
zation, 127-8;  not  encouraged 
in  China,  538;  not  favorable 
for,  720. 

Iron,  tax  on,  702-3. 

Jade,  use  of,  262. 

Jan  Keng  or  Jan  Po-niu.  388. 

Jan  Yu,  pupil  of  Confucius,  94-5, 
375 ;  distinguished  by  economic 
statesmanship,  627. 

Japan,  92,  682.  726,  729-30. 

Japanese,  41,  48,  92,  356. 

Jen  Tsung,  of  Sung,  687,  707;  of 
Ts'ing,  710. 

Jesus.   42,    159.    192.   255. 

Ju,  39,  209. 

Jui   Liang- fu,   534. 

Tung,  duke  of,  534. 

Justice,  relation  with  love,  94. 

Kai-yiian  coin,  431. 

K'aifung,  674. 

Kang  Yu-wei.  30.  36.  46.  71,  145, 
194. 

Kansu.  658. 

Kao  Kung,  338. 

Kao  Ti,  of  Man.  13,  770.  41 1-2,  645. 

rvao  Tsu,  of  Tang,  431-2. 

Kao  Tsung,  of  Sung.  442;  of  Tang, 
520;  of  Ts'ing,  ^-z;  of  Yin,  610. 

Kao   Tzu,   135,    186. 

Kao  Yao.  170. 

Keng   Shou-ch*ang.   571-2, 

Ki    Chow,    417,   639. 

Kiang  or  Yangtze  Kiang.  418.  419. 

Kiang-tu.   prince  of,  96. 

Kiangsi,  696. 

Kiangsu.    657. 

Kin  dynasty.  3.^4-  43'.  A70-i,  ^72, 
667,  677.  684-5.  697-8,   702.  704, 

707. 

Kinchou,  605. 

King,  meaning  of  the  word.  54,  60, 
3^3',  no  divine  right.  61-2. 

King  or  King  Chow.  404,  428. 

Kirin.   709,  710. 

Knowledge.   85. 

Ku  Yen-wu,  45. 

Kuan  Chung  or  Kuan  Tzu.  mercan- 
tilism and  state  socialism.  141- 
2;  as  the  representa'ive  of  ex- 
travagance. 242.  246;  120,  368. 
.^7^'  435-6.   454.  478-0.  484.  556. 


746 


INDEX 


568,  573,  661,  669,  677,  678,  701, 
702,  706. 

Kuan  Chii,  name  of  poem,  216, 
217,  218. 

Kuang-\vu  Ti,  of  Han,  377-8. 

Kuangtung,  575,  680. 

K'uang.  name  of  city,   10. 

K'uei  Ch'iu,  name  of  city,  452. 

K'iihfeu,  7. 

Kung-liang  Yii,    ii. 

Kung  Liu,  392. 

Kung-po  Liao,   no. 

Kung-shan  Fu-jao,  8. 

Kung-sun   Ch'ou,  488. 

Kung  Tsi-chin,  46. 

Kung-yi  Hsiu,  546-7. 

K'ung,  family  of  Confucius,  3,  6-7. 

K'ung  Chi,  440. 

K'ung- fu    Chia,    6. 

K'ung  Fu  Tzu,  7. 

K'ung  Ying-ta,   123,   173,  630-1. 

Labor,  ch.  XVIII ;  department  of, 
73;  division  of,  368,  485-7; 
necessity,  justice  and  honor  of, 
371-4 ;  all  kinds  productive,  407  ; 
relation  between  employer  and 
employee,  481-3  ;  free  movement 
of,  484;  relation  between  man- 
ager and  common  laborer,  487; 
legislation,  230-1,  509. 

Laboring  class,  482. 

Laissez  faire  policy,  175-80;  defects 
of,  168-170,  573-5;  practiced 
after  the  Ch'in  dynasty,  596, 
722. 

Land,  294,  295  ;  limited  in  quantity, 
350 ;  various  in  quality,  350-2 ; 
different  in  location,  352 ;  form 
of  field,  352-5 ;  absence  o*f  pri- 
vate ownership,  468-9 ;  see  the 
tsing  tien  system,  ch.  XXVI ; 
"opened,"  510-11;  "flax,"  511- 
2;  "mulberry,"  512-3;  table  of 
distribution  of,  521 ;  officials' 
ownership   limited,    549. 

Land  tax,  classification  of  Ch'u, 
389-90;  equivalent  of  rent,  469- 
70;  of  Northern  Wei,  470;  of 
Kin,  471 ;  in  the  form  of  gov- 
ernment rent,  471 ;  of  Tang, 
471  ;  of  Ch'in,  506-7;  amount  in 
the  ordinary  prefecture,  579; 
in  ancient  times,  616-7,  618, 
622,  632-3,  638-48;  described  in 
the  "Tribute  of  Yu,  638-44; 
different  rates  during  the  Chou 


dynasty,  647;  first  directly 
levied  upon  acres,  649;  changed 
from  gross  produce  to  prop- 
erty, 649;  of  Han,  649-50; 
money  first  required,  650 ;  of 
Tsin,  650 ;  mixed  up  with  poll 
tax  and  family  tax,  650;  of 
Tang,  650-2;  collected  in 
money,  652;  paid  in  silver,  655- 
6 ;  single- whip  system,  652,  656, 
658;  paid  in  gold,  656;  con- 
stant increase  of,  657;  amounts 
of,  658-9;  extra  tax,  659;  con- 
clusion on,  659-60,  714. 

Landlords,  522-3,  524. 

Language,   Chinese,  605,  726. 

Lao  Tzu,  7,  42,  115;  economic} 
doctrine  of,  190 ;  laissez-faire 
policy  of,  722. 

Latter  Ch'in,  kingdom  of,  701. 

Latter  or  Posterior  Chou  dynasty, 
697. 

Latter  Shu,  kingdom  of,  681. 

Law,  School  of,  29,  42 ;  principles 
of,  52-3 ;  same  punishment  for 
both  father  and  son,  63 ;  re- 
sponsibility confined  to  certain 
member  of  the  family,  63 ; 
basis  of  economic  development, 
76-7 ;  compared  with  ethics, 
81-2 ;  universal  and  equal,  171 ; 
social  legislation,  527-8.     ~ 

Law  Code  of  the  Ts'ing  Dynasty, 
148,  150,  155,  160-1,  165-7,  287, 
414,  475,  542,  549-50,  581,  599, 
704. 

Legge,   James,    16-7,  23,   39,  468. 

Lei  Yi-hsien,  686. 

Level  standard,  system  of,  556. 

Li   An-shih,    510. 

Li   K'o,  267-8,  391,   568-70. 

Li  Ssu,  43,  46. 

Li  Wang,  of  Chou,  534. 

Li  Yii,  708. 

Liang  dynasty,  541. 

Liang     Chow     (Kansu     province), 

378. 

Liberty,  46,  62-3. 

License  taxes,  695-6,  713;  for  min- 
ing  business,    704. 

Life,  principle  of,  201-2. 

Likin,  686-7,  689-90. 

Lincoln,  Abraham,  378. 

Ling  Ti,  of  Han,  650,  705. 

Ling  Wang,  of  Chou,  7. 


INDEX 


747 


Liquors,  tax  on  foreign,  690;  pro- 
hibition against.  706-7;  tax  on, 

Literature,  burning  by  the  Ch'in 
dynasty,  34;  highest  develop- 
ment of  the  Chinese,  726. 

Liu  An,  553.   559-63.   595. 

Liu  Chung-yiian,  55-7. 

Liu  Hsiang.  34,  46. 

Liu  Hsin,  34-6,  449.  587. 

Liu  Pan,  576. 

Liu  Te,  554- 

Lo,  name  of  a  shepiierd.  459. 

Lo-ti-slini,  698. 

Loans,  of  grain  by  the  government, 
580-2;  of  grain  by  the  people, 
583-5;   government,  586-97. 

Local  taxes,  collected  along  with 
the  national  regular  tax,  578- 
80;  not  separated  from  na- 
tional taxes,  636-7 ;  existed 
not  as  taxes.  637 ;  distin- 
guished from  that  of  central 
government.  639-40. 

Loh.   name  of   river,   419. 

Logic,   School  of,  42. 

Louis  XIV,  age  of,  726. 

Love,  20-21,  54;  universal,  60-61, 
600;  relation  with  justice,  94; 
for  the  same  kind.  155-6;  to- 
ward all  creatures,  193-4. 

Lu,  state  of  Confucius.  3,  6,  43, 
404,   672. 

Lu  Chih.  471-2,  626,  652-3. 

Lu  Chiu-yuan,  63. 

Lu  Huai-shen,  551. 

Lu   Chia-wcn,   5O7,   694. 

Lii   Hui-ch'ing,  676. 

Lii  Pu-wei.  459.  478. 

Lii  Tsu-chien,  441. 

Lung   (  Kansu  province),   378. 

Lung  T/u,  623. 

Luther,    Alartin,    45. 

l.uxury  and  extravagance,  evils  of, 
243-7 ;  reasonable  luxury,  244-5  ; 
choice  between  parsimony  and 
extravagance.  259;  of  the  gov- 
ernment, 645. 

Ma  Chun-shao,  415. 

Ma  Jcn-wang,  335-6. 

Ma  Tuan-lin.  300,  442,  528,  555, 
Sf}6,  605.  653-5,  680,  68r. 

Malthus.  161 -2,  186-7,  307-8. 

Malthusian  doctrine,  suggestion  of, 
338-9. 


Man.  origin  of.  58-63;  brother- 
hood of,  60;  as  a  spiritual  be- 
ing and  a  material  being,  185; 
feelings  of,  185;  business.  293- 
4;  first  factor  of  production, 
295-6. 

Manchuria.  657.  709. 

Market.   122,  447.  501-2,  541. 

Marriage,  ceremonies  of.  64-5,  269- 
70;  tie  of,  70-72;  as  the  start- 
ing-point of  Confucius'  social 
system.  146-7;  customs  in 
China,  147;  to  a  seconil  hus- 
band, 147-8;  consummation  of, 
148-9;  views  of  Confucianism. 
Christianity  and  Buddhism, 
192-3 ;  expenditure  for.  269- 
272;  without  music,  271;  im- 
portance of.  321-2;  day  of, 
322-s;  exogamy.  324-5;  poly- 
gyny, 325-7;  Confucius  in  favor 
of  monogamy.   ^^27. 

Measures,  standard  of,  420-1  ; 
comparison  between  the  an- 
cient and  the  modern.  421-2; 
comparison  between  Chinese 
and  ICnglish.  422;  importance 
of,  422-3. 

Mencius.  13.  29.  42.  43,  46,  75-6, 
78,  96-7.  98-9,  102-3.  103-6.  116. 
135,  136,  142-4,  160,  169.  186, 
210-2.  238-9.  266.  313.  32S,  346, 
370.  373-  423.  426.  453.  467-8. 
473.  476.  480,  485-8,  489-93. 
499.  501.  503.  505.  530-1,  541-2. 
571.  586.  597,  601,  606 -7,  607-8. 
621.  627.  628,  629,  635.  636.  695. 
697.  etc. 

Menelaus,  67. 

Mcng  llsien-tzu.  a  worthy  great 
official  of  Lu.  98. 

Meng  Yi-tzu.  7. 

Mercantile  school,   141. 

•Merchants,  productive,  368;  in  the 
beginning  of  Han,  395-7;  two 
classes,  411;  suppression  of, 
41 1-2;  position  of.  454-9; 
founders  of  commercial  school. 
459;  taxed  at  double  rate,  6(*i. 
()Q2.  693. 

•Merit,  examination  of.  91. 

Mrtnyrr  system.  470. 

•Methods  used  by  Confucius,  27-8. 

Mi  Tzii,  no. 

•Middle  Kingdom.    17.  60.  608,  642. 


748 


INDEX 


Migration,  freedom  of  movement, 
31 1-2;  encouragement  of  immi- 
gration in  general,  312-5;  con- 
trast between  the  Chinese  and 
the  Occident,  314-5 ;  encourage- 
ment of  immigration  of  arti- 
sans and  merchants,  316-9. 

Mile  or  H,  421,  422. 

Military  force,  the  army,  50-51; 
the  soldiers,  loi ;  of  ancient 
times,  505-6,  619,  661 ;  called 
for  transportation  of  food, 
646 ;  great  revolution  in  the 
system,  665. 

Mind,    1 16-8. 

Mineral  products,  tax  on,  702-5. 

Mines,  conservation  of,  346-7; 
mining  regulations,  704-5 ;  rea- 
sons for  the  undevelopment  of, 
705-6. 

Mmg  dynasty,  45,  46,  334-5,  471, 
472,  656-7,  658,  659,  686,  688-9, 
692,  693,  695,  698,  702,  703,  704, 
705,  707,  708,  710,  718. 

Ming  Ti,  of  Han,  13,  576;  of  Wei, 

Missionaries,  728-9. 

Missionary  cases,  728-9. 

Mo,    607-8. 

Mo  Tzu  or  Mo  Ti,  29,  42,  64-5, 
III;  economic  doctrine  of, 
190;  against  music,  225-6;  at- 
tacked Confucius'  rites  of 
funeral  and  mourning,  280-1 ; 
economic  theory  of,  281. 

"  Modern  essay,"  719. 

Modern  Literature,  School  of,  33, 
34,   35-6,  46. 

Moism,  29,  42,  43,  III,  190;  criti- 
cism of,  282. 

Money,  history  of,  428-435;  three 
metals,  428-9 ;  gold  standard, 
428,  435 ;  ratio  of  the  three 
kinds  of,  429;  two  kinds  of, 
430 ;  why  gold  not  as  money, 
430-1;  silver,  431;  copper, 
431-2;  paper,  432-4,  442-3, 
537;  "flying  money,"  433; 
silver  standard,  435 ;  principles 
of,  435-445;  next  only  to  food, 
435;.  as  a  commodity,  435;  a 
medium  of  exchange,  435 ; 
standard  of  value,  436;  quan- 
tity theory,  436-9,  556;  coined 
at  a  period  of  natural  cala- 
mities,   436-8;    coinage,    440-1; 


government    the    only    coiner, 
440;   prevention  of  illicit  coin- 
ing,  440-1;    free   coinage,   441; 
evil   of  bimetallism,   445 ;   coin- 
age  of   Liu   An,   563;   first   re- 
quired  for   land  tax,   650;   tax 
on,  693-4. 
Mongolians,   378,  699. 
Monopoly,   ch.  XXVII;  condemna- 
tion of,  534;  public,  535,  700-1; 
private,   536-42;   personal,   536; 
legal,    536-9;    family,    539;    na- 
tural,      540-1 ;       international, 
540-1;  business,  541-2;  preven- 
tion  of   business,   542,   552;   of 
forest    and    grasses,    701 ;    of 
bamboo,  702;   of  mines,   702-4; 
of    liquors,    679,    707;    of   vine- 
gar, 707;  of  tea,  708;  of  frank- 
incense, 709;  of  ginseng,  709-10. 
Morse,  H.  B.,  431-2. 
Mourning,   for  parents,   280,  283. 
Mouth  tax  or  poll  tax,  as  the  cause 
of  inaccurate  census,  335,  655; 
in  the  Chou  dynasty,  635-6;  of 
Tang,  650-2;  injustice  of,  654; 
single-whip    system,    652,    656, 
658;    existed   in    ancient   times, 
not     approved     by     Confucius, 
669;  of  Han,  669-70;  mixed  up 
with  land  tax,  670 ;  included  in 
land  tax,  670;  revival  of,  670; 
gradation  of,  670;  abolition  of, 
338-9,  670. 
Mu,    duke   of    Ch'in,    24;    duke   of 
Tsau,  308;  duke  of  Shan,  346- 
7;  duke  of  Lu,  546. 
Mu,  marquis,  Cy. 

Music,  as  an  institution  of  the  gov- 
ernment, 74-5 ;  as  one  way  of 
getting  pleasure,  216-231 ;  Con- 
fucius fond  of,  216-7;  neces- 
sary to  daily  life,  217;  ar- 
rangement of  Confucius,  217-8; 
reformation  of  Confucius,  218; 
theory  of,  218-223;  origin  of, 
218-9;  definition  of,  218-9;  two 
functions  of,  219-20;  relation 
to  society,  220-1 ;  usefulness  of, 
221-3;  economic  value  of, 
222-3 ;  four  component  parts 
of,  223 ;  best  for  changing  the 
influence  of  the  people,  225 ; 
condemned  by  Mo  Tzu,  225- 
6;  of  the  Chinese,  226-7;  not 
employed     at     marriage,     271 ; 


INDEX 


749 


compared  with  that  of  the 
West,   726. 

Name,  of  married  woman,  65 ;  doc- 
trine of,  1 1 1-6;  as  a  substi- 
tute for  profit,  114;  as  a  re- 
ward and  a  punishment,   115. 

Nanking,  686. 

Nanning,  696. 

Nan-kung  Ching-shu,  7. 

Natural  environment,  population 
and,  301;  inHuence  of,  347-9; 
determining  industry,  404;  as 
a  single  all-important  cause  for 
the  Chinese  life,  725. 

Natural  resources,  department  of, 
72;  conservation  of,  345-7;  de- 
termining industry.  404;  tax  on 
the  products  derived  from. 
700-1. 

Natural  selection.  53.   168-170. 

Nature,  forces  of,  340-2 ;  control 
over,   343. 

Nine   departments,   73. 

Nine  provinces,  under  the  Hsia 
dynasty,   351.  641-2. 

Nine   sects,  42. 

Nine  services.  .341-2. 

Ningpo,  687,  689. 

Northern   Ch'i    dynasty,   516-8.   523. 

Northern  Chou  dynasty,  44,  431, 
518,   523.   686. 

Northern  Wei  dynasty,  44,  378,  430, 
470.  510-6,  523,  686,  692.  703.  ^^ 

Occupation.  "  own  occupation," 
304;  freedom  of,  369-371;  ef- 
fects upon  the  character  of 
man,  370 ;  hereditary.  408-9 ; 
for  a  life  time.  409. 

Officers,  election  system,  87-91 ; 
holding  of  public  land.  503,  515, 
518-9;  hereditary,  538;  ex- 
cluded from  economic  field. 
545-51  ;  difficult  to  undertake 
commercial  functions,  57^)-7 : 
salaries  of,  618-9;   local,  663. 

Old,  living  of  the.  266-7, 

Opium,  tax  on,  710;  prohibition 
against,  710-11. 

Opium  War,  315.  451.  688,  710,  720- 

Ox  or  cow.  for  transportation,  124, 
415;  for  ploughing.  t,?S:  tax 
on,   516;   snare  of   public  land, 

515.  517. 
Pai     Kuei,     father    of     economics, 
458-0;      theorv      of      taxation, 
607-8. 


Pai-li    Hsi,   373. 

Painting,  727. 

Pan  Ku,  53-4,  62,   132-3,   173-4,  370. 

P'ang   K'eng.   372,  472. 

P'ang-kuang,   marquis.   581,  678. 

Pao  Hsi  or  Fu  Hsi,  one  of  the 
Five  Emperors.  4,  25-6,  120- 
121,  428. 

Pao  Shu,  454. 

Paris,  67. 

Parsimony,  evils  of,  249-250; 
choice  between  parsimony  and 
extravagance,   259. 

Partnership,    454,    69*5. 

Passengers,   tax  on.  686. 

Patents.   537- 

Paul,    159,    192. 

Pawn-shops,  established  by  the 
government.  592,  593-4;  tax 
on,  696. 

Peace,  16,  73,  133;  doctrine  of. 
142-5 ;  narmony  with  econo- 
mics, 143-4;  made  with  bar- 
barians. 452;  of  the  future,  730. 

Peck  or  ton,  421. 

Pehtuna.  695. 

Pei-kung   Yi,   29. 

Peking.  420.  692. 

P'eng   K'eng.   487-8. 

Penmanship.   727. 

Periclean   age,   726. 

Personal  honor,  44;  general  of  de- 
feated army  and  great  official 
of  fallen  state  excluded  from 
archery  meeting.  234. 

Personal   pride.   208-13. 

"  Personal   receiving."  64-5,  270. 

Personal  service,  631-2,  633;  age 
limit  for,  516;  of  Tang,  650-1; 
principles  of  Confucius.  660- 
2;  as  hired  labor,  661;  accord- 
ing to  the  Official  System  of 
Chou,  662-4;  rotation  tax  of 
Han,  664:  reformation  of 
Chang  Yiieh.  665;  reformation 
of  Yang  Yen.  666;  reforma- 
tion of  Wang  .^n-shih,  666-7. 
673-6;  two  kinds  of  forced  la- 
bor, 666-7 :  single-whin  system, 
667-8;  reasons  for  tne  exist- 
ence of.  660.  668;  causes  of  the 
evils  of,  668-9. 

Personality,  63. 

Physiocrats,  93.     . 

Pi  Hsi,  8. 

Pi  Yiian.  694.  1 


750 


INDEX 


Pin,  the  original  state  of  the  Chou 
dynasty,   24,  392-5- 

Ping  Wang,  5. 

Pint  or  sheng,  421,  422. 

Pitch-pot,  one  kind  of  game,  236-7. 

Plato,   145,  321. 

Pleasure,  for  the  common  people, 
96;  in  truth,  213-5;  different 
ways  of  getting,  ch.  XIV;  gen- 
eral principle  of  enjoying,  216; 
connection  with  labor,  230-1. 

Po-chi,  65. 

Po-yi,    113. 

Poetry,  collecting  of,  69-70;  form 
of,  80-81 ;   part  of  music,  223. 

Pointing-south  car,  415. 

Police  system,  449. 

Political,  divisions,  498,  642 ;  con- 
ditions in  the  past,  596;  divis- 
ions of  the  imperial  domain, 
639. 

Politics,  three  stages  of,  17 ;  to 
economics,  49,  ch.  VII. 

Poor,  consumption  of,  201 ;  happi- 
ness of,  208-15;  hopes  of,  373- 
4;  public  relief,  597-600;  four 
classes,  597. 

Popular  council,  91. 

Population,  295-6,  ch.  XVIII;  im- 
portance of,  297-300;  and  land, 
300-7;  government  control  of, 
301-2;  description  of  govern- 
mental distribution  of,  304-6; 
reasons  for  government  con- 
trol of,  306;  and  food, 
307-309;  and  wealth,  309-311; 
migration  of,  311-21;  condi- 
tions in  China,  321-30 ;  policy 
of  increasing,  323-4;  historical 
study  of,  331-9;  table  of,  2>?>^; 
in  the  beginning  of  the  Chou 
dynasty,  336 ;  destroyed  by 
war,  336-7;  increasing  in  the 
Sui  dynasty,  338;  increasing  in 
the  present  dynasty,  338-9;  evil 
effects  of  over-population,  392 ; 
adjusted  to  land,  513-4; 
table  showing  relation  to 
land-distribution,  523 ;  increase 
under  Liu  An's  administration, 
560;  future  emigration,  306-7, 
723. 

Portugal,    729. 

Poverty,  cause  of,  547-8. 

Prayer,  not  in  Confucianism,  40. 


Present,  for  traveling,  104;  for 
marriage,  272 ;  for  funeral, 
273-4;  of  introduction,  288- 
290. 

Prices,  425;  Confucius  doing  away 
with  fraudulent,  425-6;  Hsii 
Hsing's  theory  of,  246; 
Mencius'  theory  of,  426-7;  re- 
lation to  consumers'  wants, 
4^7-8;  relation  to  the  quan- 
tity of  money,  438-9,  443;  con- 
trolled by  the  government, 
447-8,  ch.  XXIX,  595;  Chi 
Jan's  theory,  457;  affected  by 
law,  507;  of  grain,  568-77;  af- 
fected by  taxation,  697. 

Prime  minister,  610. 

Princes,    excluded    from    economic 
.  field,   545- 

Private  property,  18-20;  woman's 
ownership,  155;  of  a  family, 
163-7;  theory  of,  466-7;  regu- 
lation of,  467-8;  land-owner- 
ship, 468-9,  471-2;  see  the 
tsing  Hen  sysem,  ch.  XXVI ; 
first  tim.e  of  land-ownership, 
506-7;  limitation  policy,  507; 
confiscation  policy,   508. 

Production,  natural  process  of, 
177;  over  consumption,  180-1 ; 
should  be  rapid,  181 ;  including 
exchange  and  distribution,  181 ; 
in  ancient  China,  200;  three 
factors  of,  ch.  XVII ;  branches 
of,  177-8,  ch.  XX;  reasons  of 
slow  progress  of,  718-23. 

Productivity,  152;  distribution  ac- 
cording to,  465-6 ;  theory, 
483-8. 

Profits,  the  word,  475  ;  seldom  men- 
tioned, 475-6;  justification  of, 
476-8;  amount  of,  478-9;  of  a 
master,  482 ;  sources  of,  534 
tax  on,  541-2,  678,  679,  680^ 
700-1 ;  left  for  the  people 
545-6 ;  taken  from  merchants 
by  the  government,  ch.  XXIX 
distinguished      from      interest 

589. 
Progress,  20;  theory  of,  132-8 
economic,  132-4;  summary  of 
the  theory  of,  134-5 ;  domina- 
tion of  different  industries 
along  with  the  general  direc- 
tion of,  402-3;  why  slow  in 
China,  2,2>7,  717-26. 


INDEX 


751 


Public  debt,   681 72.     . 

Public  expenditures,  383.  ch. 
XXXII;  proper  proportion  be- 
tween social  income  and,  607- 
8;  general  principles  of,  608- 
13;  classifications  of,  613-6; 
characteristics  of  the  ancients, 
616-20;  according  to  the  three 
stages,  620;  rule  of  Ming,  657. 

Public  finance.  55^-3.  555-67.  573. 
589-97;  the  term,  605-6;  neces- 
sity of,  606-7;  surplus  re- 
served, 61 1-2;  department  of 
the  treasury,  615-6;  mixed  up 
with  private  finance  of  the 
ruler,  616-8;  obstacle  to  the  de- 
velopment of,  627-9;  great 
trouble.  637 ;  surplus  reserved, 
657;   conclusion  on,  714,   72^. 

Public  park,   237-9. 

Public  relief,  597-600. 

Public  work,  204-5.  228,  245,  see 
personal  service. 

Quesnay,  93. 

Race  question,  absent  in  China, 
319-20;  in  Europe,  320-1;  in 
America,      321 ;      commingling, 

324- 
Rebellions  of  the  Five  Barbarians, 

Reciprocity,  21-2;  basis  of  world 
economy,  commercial  policy 
and  international  law,   141. 

Recording-miles-drum  car,  416. 

Records  of  the  Seventy  Disciples 
and  their  Followers.  (Ch'i  Shih 
Tcu  Hon  Hsiao  Chi).  ^2. 

Religion,  three  stages  of,  17; 
Chinese  old,  40;  basis  of.  57; 
no  blood  ever  shed  on  account 
of,  61  ;  included  in  education, 
82;  social.  84-7;  particular 
character  of  the  Chinese,  287-8; 
foreign,  in  China,  729. 

Religious,  worship,  85;  piety,  152; 
expenses.  205,  260-1,  619-20. 

Rent,  absence  of  land-ownership, 
468-9:  land  tax  the  equivalent 
of,  469-70;  amount  of,  470-2; 
theory  of  Lu  Chih,  471-2; 
theory  of  Hsun  Yiieh,  522; 
theory  of  Su  Hsun,  524;  tax 
on,  6S0;  "sea  rent."  695. 

Representation.  89-91. 

Representatives,  of  the  people,  557. 

Responsibility,   63. 


Revolution,    great,    62;    Confucius' 

opinion  on,  78. 
Ricardo,  648. 
Rice,   124,  382,  553;  transported  by 

sea,     418-9;     storage    of,     561; 

consumption    too    large,    575-6; 

canal-transportation   of,    644-6; 

not    subject    to    import    duty, 

689,   690. 
Rites,    doctrine   of,    187-206;    scope 

of    the    word,    187;    origin    of, 

188-90;    as    the    golden    mean, 

243- 

Roads,  along  the  fields,  354;  gen- 
eral system,  416;  system  given 
in  the  Official  System  of  Chou. 
417 ;  imperial.  419. 

Roman   Empire,  729. 

Romans,  320-1. 

Rome,  131.  379.  727. 

Roscher,  51. 

Ross.  E.  A..  722-3. 

Ruler,  meaning  of  the  word,  54, 
77-8;  expenditures  of,  615-6, 
616-8. 

Ruling  class,  excluded  from  eco- 
nomic  field,   ch.    XXVIII. 

Sage  of  Times.  Confucius,  14. 

Sage  rulers.  4,  10. 

Salaries,  the  word.  480-1  ;  ideal 
system  of.  491-3;  means  of 
getting,  493-4;  amount  of,  618; 
reduction  of,  680. 

Salt,  policy  of  Liu  An,  561-2; 
farmed  out  to  the  merchants, 
700:  tax  on,  706. 

Sang  Ching,  557. 

Sang  Hung-yang,  541,  555-8. 

Saving,  general  rule  of.  t^-,^:  prin- 
ciple of,  361 ;  importance  of. 
362;   affected   by  taxation,  693. 

Sculpture,   727. 

Self-help.  40-41,   109. 

Self-proving  law,  676. 

Seligman,   622,   648.  653. 

Senior,  N.  W..   199. 

Settlement,  300-2,  347-8. 

Shang  Yang.  385,  412,  506,  530-1. 

Shanghai.  225.  689. 

Shanhaikuan,   709. 

Shao.   duke  of,   224. 

Shao,  name  of  music.  74-5,  216. 

Shao-chcng  Mao.  9. 

Shao  Hao,  415. 

Shcn  Kai.  442. 

Shcn  Nung,   121 -2,  176,  385. 


752 


INDEX 


Shen  Tsung,  of  Sung,  643,  675;  of 
Ming,  657. 

Shengking,  709,  710. 

Shentaoism,  41. 

Shih  Chiao  or  Shih  Tzu,  385. 

Shih  Tan,   507. 

Shih  Tsu,  of  Yiian,  537,  599. 

Shih  Tsung,  of  Ming,  657;  of  Kin, 
684-5;  of  Ts'ing,  706. 

Ships,  tax  on,  685-6. 

Shu,  kingdom  of,  333. 

Shu   (Szechuan  orovince),  378. 

Shu-chi,   65. 

Shu-ch'i,   113. 

Shu-chiin,   388. 

Shu-liang  Ho,  6. 

Shun,  one  of  the  Five  Emperors, 
20,  29,  75 ;  type  of  a  republic, 
77',  104,  122-6,  Z7Z,  386,  422,  610. 

Shun  Ti,  of  Sung,  415. 

Siam,   575,   689. 

Sian,   562,   658. 

Silk,  industry,  126;  work  of  wo- 
man, 152-3;  silk-worm's  house, 
153;   for  the  old,   266. 

Simplicity   and   moderation,   247-8. 

Singing,  men  and  women,  69,  80; 
of  Confucius,  217;  the  word, 
217;  description  of,  223;  rela- 
tion to  dance,  224. 

Single-whip  system,  338-9,  652,  656, 
658,   667-8. 

Six  arts,   12. 

Six  calamities,   170-1. 

Six  Canons,  original  order,  24-6; 
changed  order  by  Liu  Hsin,  34. 

Six  imperial  factories,  400-1. 

Six  treasuries,  as  natural  produc- 
tion, 341-2 ;  storing  products, 
399-401. 

Slavery,  absent  in  China,  374-9, 
480-1 ;  resulted  from  crime, 
374-5 ;  absent  in  Confucius' 
system,  375 ;  in  the  Ch'in 
dynasty,  376;  in  the  Han 
dynasty,  376;  first  announce- 
ment against,  Z7^-7  \  first  aboli- 
tion, 377;  abolished  by  Kuang- 
wu,  377-8;  final  abolition,  379; 
of  the  Northern  Dynasties, 
517-8. 

Slaves,   rights  of   public  land,   515 ; 
direct    tax    of,    516;    limitation 
of,  516-7;  taxed  at  double  rate, 
669. 
Small  Tranquility,   17-20,  46,  70. 


Smith,  Adam,   100,  21 1-2,  490,  493. 

Socialism,  of  Confucius,  18-20; 
state,  142,  172,  173-4,  478-9; 
Confucian,  175,  466-7,  543-4; 
compared  with  tsingtien  sys- 
tem, 532;  idea  of  Confucius, 
623. 

Socialists,  524. 

Sociology,  to  economics,  49,  ch. 
VI ;  How  and  why  society 
comes  to  exist,  52-7 ;  origin  of 
man,  58-63;  five  social  orders, 
196;  social  usurpation,  246-7; 
contractual  society,  455-6 ;  two 
classes  of  men,  95-6,  461-2!', 
632,   633;   group   system,  662-3. 

Soul,  doctrine  of,  116-8;  the 
synonyms,  116;  belief  of  Con- 
fucius, 286;  existence  of, 
286-7. 

South  and  Central  America,  729. 

Southern  Dynasties,  684,  711,  718. 

Southern  and  Northern  Dynasties, 
44,   430. 

Spain,  729. 

Spiritualism,  42. 

Spring  and  Autumn,  12,  15-7,  26-7, 
32,  46,  58,  64,  65,  69,  77,  85-6, 
88,  115,  143,  204,  245-6,  319,  etc. 

Spring  and  Autumn,  period  of,  42, 
129-30,  173-4,  336,  725- 

Ssii  Hsia,  217. 

Ssu-ma  Chien,  7,  46,  51,  112,  176-9, 

349.      ^ 
Ssu-ma  Keng  or   Ssii-ma  Tzu-niu, 

388. 
Ssu-ma  Kuang,  320,  576-7,  592. 
Stamp   tax,    in   the    Chou    dynasty, 

711;  in  the  Sung  dynasty,  712- 

3 ;  of  the  present  dynasty,  681, 

713- 

Standard  of  living,  identified  with 
standard  of  morality,  198;  so- 
cial, 260-8;  general  survey, 
260-2 ;  of  the  great  officials, 
263-4;  of  the  students,  264-6; 
of  the  common  people,  266-8. 

Stone  or  shih,  421. 

State,  taking  up  functions  ^  of  the 
family,  71 ;  size  of  different, 
238.     . 

Statistics,  of  the  expenditures  of 
the  common  people,  268;  of 
the  population,  297-9;  reported 
by  different  departments,  608-9. 

Stoics,  41. 


INDEX 


753 


Stoppage  at  the  source,  680,  712. 
Struggle,     for    safety    and    subsis- 
tence, 54. 
Student,  type  of,  63;  not  necessary 

to  be  a  farmer,  384-5 ;  for  fame 

than    for    money,    ^63;    highest 

esteem  paid  to.   720. 
Su  Hsun,   524-6. 
Su  Shih,  424. 

Su  Tsung,  of  Tang.  681-2,  694. 
Sii  Chow   (Kiangsu),  377. 
Sui     Dynasty.    44.    92.    338,    518-9, 

523.  577-8,  683. 
Sun-shu  Ao,  ^7Z- 
Sung,  state  of,  6,  28,  43,  104,  404. 
Sung  dvnasty,  of  the  House  of  Liu, 

680;  681. 
Sung   dynasty,   the   Confucians   of, 

45,     46,    96-7,     127,     250,     726; 

population    of.    334;    47 1,    4/2. 

573.  579,  585.  598,  636,  655,  656. 

667,   670,    680,    684,    685-6,    687. 

692,    694,    697,    698-9.    701,    703, 

704,    707,    708,    709.    712-3.    718. 

719,   726. 
Switzerland,  compared  with  China, 

93. 
"System  of  Yao,"  24-5,  73.  615-6. 
Sze.  name  of  river.  418. 
Szechuan,  433,  692. 
Tael  or  liaug,  421.  422. 
Tai  Chou,  579. 
Tai    Mountain,    12,   311. 
Tai   Sheng,  31-2. 
Tai   Te,  31-2. 

Tai  Tsung,  of  Tang,  672-3. 
T'ai   Chia,  610. 
T'ai  Kung,   128-9.   150,  428. 
T'ai-p'ing  rebellion.  339.  686. 
T'ai    Tsu,    of    Ming.    599,    656,    of 

Sung.  681.  685. 
T*ai   Tsung,   of  Tang.   319-20,   579. 

705. 
T'ai   Wang.    t>22. 
T'aiyiian,    709. 
T'an.  name  of  state.  629. 
Tang,  nation  of.   249. 
Tang  dynasty.  44.   310-20,  334,  418, 

430.   470,   519-20.   523.   549.   573. 

579,  658,  666,  680,  683,  697,  701, 

703.  704,  709.  719- 
Tao.  marquis  of  Tsin.  5S8. 
T'ao,   surname.   409. 
T'ao  K'an.  mother  of.  724. 


Taoism.  7,  29,  42.  44,  iii.  ii5;6, 
190-1,  718;  compared  with 
Christianity,  728. 

Taoist,  Confucius'  influence  upon. 
287;   as   idler,   721. 

Tartars.   378. 

Taxation,  policy  of  Chao  Tso,  383 ; 
system  of  Sui,  338;  system  of 
Yin.  400;  system  of  Xorthern 
Wei,  516;  system  of  Han,  555- 
6;  policy  of  Liu  An,  559,  562- 
3;  faculty  theory.  579-80,  623-4; 
in  general,  ch.  XXX HI;  de- 
velopment in  the  earliest  times. 
621-4;  system  of  different 
dynasties.  624;  sources  of. 
624-6;  doctrine  of  the  light 
tax,  626-9;  with  certain  regu- 
lations. 629;  principle  of  equal- 
ity, 629-31 ;  progressive.  631. 
680;  principle  of  universality. 
631-3:  classification  of.  633-7; 
in  time  of  war,  634-5 ;  double. 
636,  675.  677;  legal  separation 
between  local  and  national. 
636-7;  three-taxes  system  of 
Tang.  650-1  ;  summer-and- 
autumn-taxes  system,  651-5; 
extra  taxes.  659.  675 ;  social 
concept  of.  724-5. 

Te  Tsung,  of  Ts'ing,  46;  of  Tang. 
677-8.   682.   694. 

Tea.  tax  on.  708-9. 

Theater.    224-5. 

Thousand-miles  ship,  420. 

Three  businesses,  341-2. 

Three  Dynasties,  4.  15.  499.  596. 
621-2. 

Three   Kingdoms,  ^^z^  508. 

Three  Kings.  4. 

Three    Stages.    16-20.    72,    132.    194. 

2>27- 
Three  Systems,   15-6. 

Three     things     worthy     of     honor. 

211-2. 
Tientsin.  225. 
Timber,  tax  on.  701-2. 
Tithe.  400.  607,  625.  647-8 
Title-deeds,  tax  on,  711.  7^2-?> 
Tobacco,  tax  on   foreign,  690;   tax 

on.    710. 
Tonnage    duties.    686;    on    foreign 

ships.  688-9,  601. 
Tools,  importance  of.  405. 


754 


INDEX 


Trade  guilds,  455;  seventy-two  in 
Canton,  483;  tax  on,  694;  dif- 
ferent from  American  trusts, 
724. 

Trade  unions,  483,  724. 

Transactions,  tax  on,  71 1-3. 

Transportation,  earliest  develop- 
ment, 124;  by  land,  414-7;  uni- 
formity for,  416 ;  by  water, 
417-420;  by  sea,  418-9,  537;  of 
grain,  571 ;  of  rice,  644-6. 

Tribute,  really  the  land  tax,  640; 
of  native  distinguishable  pro- 
ducts. 642-3;  reasons  of  send- 
ing, 643-4;  as  an  unlawful  tax, 
646-7 ;  connected  with  foreign 
trade,  451,  688. 

"Tribute  of  Yii,"  24-5,  417-8,  638- 
44. 

Trojan  War,  6y. 

Tsai,  state  of,   11. 

Tsang  Wen-chung,  546. 

Tsao  Tsao,  44,  658,  671. 

Ts'eng  Tzu,  21,  30,  31,  63,  157-8, 
203. 

Tsin,  state  of,  8,  369,  455 ;  dynasty 
of,  44,  340,  470.  523,  541,  548-9, 
^  658,  670,  671,  684,  711,  718. 

Tsin,  name  of  river,  66. 

Ts'in,  name  of  river,  420. 

Tsing  Hen  system,  69,  70,  75,  79, 
0O-81,  82,  85,  132-4,  266,  374 
376,  468;  meaning  of  the 
words,  352-3;  form  of,  352-5; 
ch.  XXyi ;  history  of,  353,  497- 
501 ;  principles  of,  498 ;  of 
Confucius,  501-6;  destruction 
of,  506-7;  unsuccessful  at- 
tempts to  revive,  507-8;  revival 
of,  508-522 ;  opinions  on,  522- 
8;  conclusion  on,  528-33;  ap- 
plied to  the  Middle  Kingdom 
only,  642. 

Ts'ing,  name  of  a  widow,  459. 

Ts'ing  Chow   (Shantung),  2>77- 

Ts'ing  dynasty  or  present  dynasty, 
45-6,  657-9,  670,  682,  685,  686-7, 
688-91,  692,  693,  695,  696,  698, 
702,  703-4,  704-5,  707,  708-9, 
709-11,  713,  718. 

Tso-ch'iu  Ming,  35. 

Tsou,  name  of  city,  6. 

Tsu  Chung-chih,  415,  420. 

Tsui  Shih,  302. 

Tu  Yu,  296. 


Tung  Chung-shu,  43,  46,  58,  88,  95. 

96,  37^,  463-4,  507,  547-8,  etc. 

Turks,  319-20. 

Twelve  tubes,  420-1. 

Tyrannicide,    78. 

Tzu,  2Z- 

Tzu-ch'an,  455. 

Tzu-chang,  175-6,  463. 

Tzu-chung,   son  of,  225. 

Tzu-han,   340. 

Tzu-hsia,  31,  32,  43,  60,  267,  375. 

Tzu-kung,  12,  13,  31,  loi,  230; 
wishes  of,  144;  as  a  merchant, 
456-7,  459,  476-8. 

Tzu-lu,  85,  no,  200,  234,  385; 
wishes  of,  144;  as  a  type  of 
strong  man,  209. 

Tzu-nang,   369. 

Tzu-ssii,  grandson  of  Confucius, 
46,  202-3. 

Tzu-yu,  31,  46,  119,  201. 

United  States,  the,  92,  93,  314,  318, 
.321,   379- 

Unity,  20-22. 

Universalism,  313,  314-5,  530-1. 

Usury,  580-1. 

Utility  and  scarcity,  423-5. 

Value,    423-5. 

Village  of  K'ung,  13. 

Village  granary,  system  of,  582-5. 

Vinegar,    tax   on,   707. 

Wages,  origin  of,  480-1;  produc- 
tivity theory,  483-8;  standard 
of,  488-91 ;  ideal  scale  in  whole 
society,  491-3 ;  education  as  a 
solution,  493-6 ;  Liu  An's' 
policy,  559 ;  for  public  work, 
661,  664,  667;  tax  on,  679. 

Wan   Chang,   105. 

Wang  An-shih,  45,  563-7,  584-5, 
589-93,   666-7,   673-6. 

Wang    Chi,    322-3. 

Wang   Ch'i,    579-80. 

Wang   Chung,   245. 

Wang   Fu-chih,   45.     . 

Wang  Mang,  34,  377,  429,  430,  431, 
508,  533,  558,  587,  589,  (>72, 
679. 

Wang  Shou-jen,  45,  63,  730. 

Wang  Yen,  718. 

War,  destroyer  of  population, 
336-7;  465. 

Warring  States,  period  of,  42, 
129-30,    173-4,   336,    725- 

Wars  of  the  Eight  Princes,  510. 

Water-channels,   353-4. 


INDEX 


755 


Wealth,  relation  to  virtue,  98; 
acceptance  of,  103-6;  the  first 
of  the  five  blessings,  170,  172; 
the  word,  356-8;  nature  as  a 
producer  of,  466-7. 

Wei,  state  of.  94,  218,  570. 

Wei,   name  of   river,  66. 

Wei,  nation  of,  249;  dynasty  or 
kingdom  of,  44,  333,  470,  671, 
707.   719. 

Wei    Chi-tsung,    565. 

Wei    Chiang,   452. 

"V\  ei   Ts'ing.  376. 

Wei  Tzu.  6. 

Wei    Yuan,    46. 

Wen,  marquis  of  Wei,  43.  267; 
marouis  of  Tcng,  43,  7^;  duke 
of  Tsin.  173;  duke  of  Kuo, 
381  ;    duke   of   Wei,   452. 

Wen-hsiian  Ti,  of  Northern  Ch'i, 
671. 

Wen    Ti,    of    Han,    197,    360.    383, 
397.   'QS,  612-3.  649;   of  North- 
ern Chou.  518,  582;  of  Sui,  419, 
^  578.  612-3. 

Wen  Wang,  one  of  the  Three 
Kings.  10.  19,  26.  29;  type  of 
constitutional  monarchy.  77; 
mother  of.  137;  park  of.  238- 
9;  excursions  or  hunting  of, 
240 ;  ^44.  285,  597,  695. 

\\heat,  382. 

Wife,  meaning  of  the  word.  64; 
like  brothers,  64;  respect  to. 
64-5:  cloice  of.  137;  relation 
to  h'":hpnd,  146-1;;;  equal 
to  hn«band,  154-5;  parents  and,  ; 
159-60.  j 

Woman,  position  of.  63-72;  equal' 
to  man.  64-5 ;  respect  to.  64-5, 
154;  name  of  married,  65; 
separated  from  man,  65-9;  as 
a  prom.oter  of  economic  pro- 
gre-:.'?,  68;  social  intercourse 
with  man.  66-7,  69;  man  can 
be  teacher  ot.  69;  political 
right  of.  60-70.  407:  absolute 
independence  of.  70-72;  econo- 
mic position  of.  15 1-5,  407; 
nourishing  a  child.  151-2;  par- 
ticipating in  ancestor-worship. 
153;  ownership  of  property. 
15^;  not  dancing  with  men. 
225;  in  the  theater,  22;:  danc- 
ing with  men,  225;  special  pro-  i 


fession  of,  503;  work  of,  504; 
rights  to  public  land.  509-10, 
518,  521  ;  five-times  the  regu- 
lar rate  of  poll  tax  upon  the 
unmarried  woman,  669-70 ;  not 
help  economic  development, 
721. 

\V'ooden  oxen  and  flowing  horses, 
416. 

World,  16-20;  as  the  largest  eco- 
nomic organization.  139-145; 
two  things  for  the  equalization 
of,  140;  to  be  united,  145; 
economic  relation,  317;  no 
division  of  people,  311. 

Wu,  name  of  state.  323-4,  404, 
419;  kingdom  of,  333. 

Wu.  name  of  music,  74-5,  224. 

W'u  or  Wu  Wang,  19,  29,  62,  75. 
78,   115- 

\Vu-ch'eng  Ti,  of  Northern  Ch'i. 
516. 

Wu  Ti.  of  Han,  43.  430,  431,  556, 
645.  670.  685.  6«5.  692.  C93,  695, 
702,  707;  of  Tsm.  333-4,  508-10, 
549,  671  ;  of  Liang,  431. 

Wu   Tsung.   of   Ming.  657. 

Wun    Yen-po,    319-20. 

i'o  and  sung,  218.  219,  226. 

"Vang,   marquis.   67. 

Yang  Chow.  418.  428. 

\  ang   Chu.  42,    115-6    191. 

Yang  Hu,   100. 

Vang  Ti,  of  Sui,  33.  419-20. 

Yang  Yen.  651-2,  666,  670. 

Yangchow,  419. 

Vao,  one  of  the  Five  Emperors,  20. 
24,  29;  type  of  a  republic,  77; 
122-6.  173.  360,  386,  415,  610. 

Yeh  Shih,  302-3,  392,  412,  444. 
526-8. 

Yeh   Tzu-ch'i,   442-3. 

Yellow  cup,  the  standard  of  meas- 
ures. 420- 1. 

Yellow  peril.  -30. 

^  en,  name  of  .state,  404. 

Yen    Chcng-tsai.   6. 

Yen  Chou-yu,   no. 

Yen  Yuan  or  Yen  Hui,  74;  wishes 
of.  144-5;  poor  condition  of, 
214.   263.  476-7. 

Yi  Chow  (S/echuan  province).  378. 

Yi  Yin.  prime  minister  of  Ch'eng 
T'ang.    104,    610. 

Yin,  duke  of   Lu,  466,  545. 


756 


INDEX 


Yin  or  Shang  dynasty,  6,  15,  28,  29, 
74;  development  of  industry, 
399-401;  429,  472,  481,  498, 
621-2. 

Yo,  a  noble  family  of  Sung,  582. 

Yokohama  Specie  Bank,  682. 

Yu  or  Yu  Wang,  last  emperor  of 
the  Western   Chou,    153,  463. 

Yu   Chow,  418. 

Yu  Jo,  13,  625. 

Yii,  name  of  the  dynasty  of  Shun, 
176,  402,  428,  429,  640-1. 

Yii,  one  of  the  Three  Kings,  19, 
29;  spending  o^  "'  •  ■'^ounder 
of  the  really  'rr  m  ci.  ^al  em- 
pire,   2)Z^',   repre:  ec    Uie   great 


floods,  350;  universal  establish- 
ment of  the  tsing  Hen  system, 
353 ;  originator  of  water- 
channel  system,  353;  360,  386, 
553-4,   610. 

yuan,  20-21,   58-9. 

Yiian,   daughter  of,   225. 

Yiian  dynasty,  45,  418,  433-4,  472, 
658,  670,  686,  687-8,  695,  698, 
699,  702,  703,  704,  707,  708, 
718,   722. 

Yiian  Hsieh,  444-5. 

Yiian   Shih-kai,   682. 

Yiieh,  name  of   state,   323-4,  404. 

iungchia.  School  of,  45. 

Yiinchow,  566. 


ERRATA 


Vol.  I 

Page  2)Zy  hne  13,  prohibited  by  several  emperors,  and  should  be  omitted. 
Page  65,  note  2  should  be  inserted:  "^  cf.  infra,  pp.  111-5. 
Page  69,  line  9,  instead  of  weaving  read  spinning. 
Page  yz,  hne  17,  instead  of  ,rst  read  iirst. 
Page  72,,  note  i,  infra,  pp.  553-4-     • 
Page  75,  note  i,  infra,  p.  467. 
Page  125,  note  i,  infra,  pp.  277-8. 
Page  134,  note   i,   infra,  pp.   142-5. 
Page  134,  note  3,  infra,  pp.  343-4- 
Page  134,  note  4,  infra,  pp.  497-5o6. 
Page  188,  line  7,  instead  of  Tsiin  read  Hsun. 
Page  205,  note  i,  infra,  p.  667. 
Page  268,  note  2,  infra,  pp.  568-70. 
Page  300,  note  i,  infra,  pp.  333-^- 
Page  308,  line  13,  instead  of  Mo  read  Mu. 
Page  310,  note  i,  infra,  p.  465. 
Page  313,  note  3,  infra,  pp.  530- 1- 

VOL.    II 

Page  404,  line  16,  instead  of  Hu  read  Fenhu. 

Page  422,  note  i,  instead  of  Present  read  Ts'ing. 

Page  534,  lines  4  and  14,  instead  of  Duke  Yung  read  Duke  of  Jung. 


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